Operators to raise car insurance tariff by 5,000 DZ in 2017

date 2016/11/27 views 1731 comments 0
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icon-writer By: Imene Kimouche / English version: M. A.

Insurance companies plan to raise insurance on cars by 5,000 DZ in 2017 as car dealers experience a difficult financial situation due to imports quota, Echorouk has learnt.

Insurance companies find themselves not able to settle the situation of 4.5 million Algerians. Most of their cases are related to traffic accidents and some of them have been unsettled for more than 9 years.

This sector lost a large margin of its sales due to imported cars quota. Insurance companies receive 6,000 complains and compensation requests every day in different subsidies.

According to the same sources, road accidents increased by about 5 percent in 2015-2016 compared to 2014. Compensation value for accidents reached 6,600 billion centimes. In 2015, insurance companies paid 5,700 billion centimes compared to 5,740 billion in 2014 following traffic accidents. 

Cars importing went down and compensation requests for spare parts are on the rise. Because of that, insurance operators’ financial capacities have been weakened. They propose to raise contributions by 5,000 DZ to settle the situation partially.

Earlier, the finance ministry fixed March 31st as a deadline for insurance operators to settle suspended cases which have been waiting for compensation since 2007.

 

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