Tunisia: Mandatory motor premiums increased by 10-20% from 8 May
Source: Middle East Insurance Review | Jun 2017
Compulsory motor third-party liability premiums have been raised with effect from 8 May, according to a circular published by the Ministry of Finance.
The increase in premiums range from 10% to 20% in compulsory motor insurance, but are lower for voluntary insurance (fire, theft, etc), according to the circular. The increases apply to new or renewed insurance policies.
According to the Ministry of Finance, the aim is to ensure a balance in the compulsory motor insurance segment, which currently sees a loss ratio of 180%. The Ministry also said that there will be a gradual increase in tariffs to reduce losses.
Under the new tariff schedule, there is a 10% increase in tariffs for vehicles with a horsepower of less than six, vehicles with a weight not exceeding 3.5 tons, and small- and medium-sized motorcycles.
There is a 20% increase in tariffs for vehicles with a horsepower of least seven, vehicles with a weight exceeding 3.5 tons and large motorcycles.
Losses in mandatory motor insurance are attributed to the high number of road accidents and higher costs of vehicles and spare parts, exchange rate volatility, decline in the value of the Tunisian dinar and fraud. M