Motor third-party liability (MTPL) insurance premiums in Morocco are expected to increase by approximately 5% on average starting in April 2026, following the revision of the compensation scale for traffic accidents.
In 2025, the motor branch generated premiums of MAD16.4bn ($1.8bn), of which MAD13.4bn was attributable to MTPL. This accounted for 81.7% of the total motor premiums, reported the news platform Medias24.
Existing motor policies are not affected by the increase in premiums, which will be applied when a policy is renewed.
No particular premium increase is stipulated. The increase depends on several parameters: usage, fuel, tax horsepower, engine displacement, total weight when loaded, and other factors defined by the insurance regulator, etc.
The Executive Vice-President of the Moroccan Insurance Federation, Mr Bachir Baddou, previously told Medias24, "The estimated impact of this regulatory change on the tariff is around 5% per year, applied gradually over the period 2026-2030, which would represent, at the end of five years, a cumulative increase of around 24% to 25% of the third-party liability premium."
A law, published in the Official Gazette at the end of January 2026, significantly modifies the compensation scale for victims of road traffic accidents by revising the calculation bases. The law notably raises the reference income used to compensate accident victims. The compensation table also takes into account the victim’s age, income, and an updated reference capital.
These changes translate into higher compensation in personal injury claims. These costs have to be covered by insurance premiums to maintain the financial equilibrium and sustainability of the MTPL insurance business. Consequently, its implementation leads to premium rate adjustments.