The 2020 finance law introduced a pollution tax collected directly by insurers when they underwrite a motor/rolling stock insurance policy.
According to the National Insurance Council (CNA), this tax has impacted the collection of motor premiums. During H1 2020, motor turnover decreased by 10% to be set at 33.8 billion DZD (261.076 million USD). Consequently, the 2021 draft finance bill aims to abolish this tax due to its impact on insurers' results.
In fact, the pollution tax is not the only reason for the decline of motor premiums. According to the CNA, the lockdown, the closure of certain underwriting offices, the suspension of activities of automobile assembly plants and the decrease in underwritings have also affected the motor activity.
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