100% increase in car insurance cost
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ennahar
Algiers- The President of CAAR, an insurance company, and the CEO of the National Insurance Company SAA, Amara El Atrous, declare that insurers have asked the Algerian government to double the price of the compulsory insurance of vehicles, which represents over 80 % of the insurance market in Algeria. Amara El Atrous adds that car insurance costs insurance companies large losses every year.
- The CEO El Atrous, host of Radio channel III, said that insurance companies expect the Government and the Ministry of Finance an increas of 100% of the compulsory insurance of vehicles and the department has given agreed of principle. i. e. doubling the price which will rise from 1500 Algerian dinars to 3000 AD. According to Mr. el Atrous, the impressive number of road accident creates huge deficits for insurance companies which issue refund for material and human losses, although the price of insurance has already been revised upwards in 2008 to 20%, an increase of 5% every six months, companies have always been in deficit.
Furthermore, concerning insurance on drought, Mr. El Atrous reported that companies and the government are studying a new formula to include the phenomenon of drought as a natural disaster which will be covered by insurance. The project is being studied and could be launched next year. As for the instability of international insurance companies in Algeria, he said that the ministry accept all proposals that are consistent with the Algerian market. He added that there are two foreign insurance companies operating in Algeria, a Gulf company specialises in insurance of person and the other French. - Ennahar / Sami Siyoucef
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