Algeria: Weak demand for public liability insurance products
Source: Middle East Insurance Review | May 2019
With the exception of public liability insurance purchased for public carriers of goods, there are only occasional subscriptions for other forms of public liability insurance, said Mr Boudraa Abdelaziz, president of the Algerian Union of Insurance Brokers (UACA).
He attributed the situation to the absence of an insurance culture, a lack of promotion of civil liability insurance and lack of control by the authorities, reported Algeria Press Service.
In Algeria, there are several types of liability insurance contracts, some of which are mandatory. For example, SMEs are required by law to insure themselves against the risks that their activities may generate. There is also public liability insurance for the sports field.
The National Association of General Insurance Agents (ANAGA) president Belach Mohamed believes that “it is enforcement that would sell public liability insurance”.
Freight carriers and drivers of private vehicles and passenger transport do not hesitate to buy third party liability automobile insurance because they are regularly checked on the roads by the police and at checkpoints, he said.
So far, even municipalities do not buy public liability insurance although this is legally mandated.
Mr Mohamed said, “It is inconceivable for a local authority of the state not to comply with a legal obligation.” The Ministry of the Interior and Local Government should enforce the requirement in all communes, he added. M