Algeria: Proposed law to mandate construction insurance
Source: Middle East Insurance Review | Mar 2015
A draft bill, when passed, will make it compulsory for construction companies to take out insurance on road and other infrastructure projects and provide a maintenance warranty, said a Public Works Ministry official.
The ministry committee responsible for drafting the proposed law should finalise the first draft of the Bill by the end of March, the source told Algeria Press Service.
The Algerian government is introducing the cover to reduce the cost of infrastructure maintenance. It is understood that roads and other infrastructure become damaged in some parts of the country after only a few years of being put into service, because of non-compliance to standards well as natural hazards.
The existing law provides for a guarantee given by contractors to cover defects in construction for 12 months after the handover of the project.