Algeria: Compulsory motor TPL tariff to see first hike in a decade
Source: Middle East Insurance Review | Jan 2017
Tariffs for motor compulsory third-party liability insurance will be increased every six months by 5% over a two-year period, starting 1 January 2017, said media reports.
The last adjustment of the tariff linked to the motor compulsory third-party liability insurance tariff was in 2008, reported All About Algeria, citing a circular sent by the Director General of the Treasury to the Algerian Union of Insurance and Reinsurance companies (UAR).
The circular said: “It was decided that the application of a 20% increase in the price related to the mandatory insurance will be spread over the next four semesters and, according to the following schedule: 1 January 2017: +5%; 1 July 2017: +5%; 1 January 2018: +5%, 1 July 2018: +5%.”
The Treasury advocates that an information campaign about the increases be carried out, targeted at the insured.
For several years, motor insurers in Algeria have been urging the government to raise the tariff, warning that solvency is being threatened and that the insurance industry is on the brink of collapse due to huge losses in this class of business.
However, insurance players said that the increases will not be enough to cover their losses, adding that they are demanding real increases in tariffs rather than symbolic hikes.