Every year, more than a million claim declarations are reported by Algerian insurers for the motor class of business. Overwhelmed by the huge number of claims in third party liability, insurance companies could no longer withstand the pace of compensation applications.
The lack of information about the claims and the slowness of administration were partly to blame for these delays. The insurers’ commission in charge of resolving this thorny case has announced that all claims entered before the end of 2014 will be settled by the end of 2016.
The entire market will therefore benefit from the restored credibility of policyholders. The Algerian union of insurance and reinsurance companies has outlined a compensation method among insurers based on the average cost of a claim. This cost is estimated at 37 148.5 DZD (348 USD).
Once inter-insurers’ compensations have been achieved, each company may proceed with the indemnification of its insured customers according to their real damage.