Algeria: 6,000 Dinar Hike In Pricing Of Automobile Insurance Starting From January 2017

The Public Treasury’s General Management has announced a price hike to the tune of 6,000 Dinars in car insurance, in a move which has been adversely received by motorists in Algeria.

Motorists are thus requested to review upward their budget for car insurance. In a correspondence sent to the Algerian Union of Insurance and Reinsurance Companies of which “Echorouk” holds a copy, the Director General of the Public Treasury announced a 20% increase in the tariff linked to the compulsory “civil liability” guarantee in matters of automobile insurance.

“I have the honor to inform you that it has been disclosed to the various insurance companies based in Algeria that, after reviewing the technical results recorded in recent years by the automobile insurance industry, it has been decided to readjust progressive tariffs linked to the compulsory ‘civil liability’ guarantee in the field of automobile insurance,” he stated.

“In this context, a 20% hike (or the average equivalent of 6,000 Dinars) in the tariff linked to the mandatory guarantee will come into force, and will be staggered over the next four semesters, according to the following schedule: January 1, 2017: + 5%, 1st July, 2017: + 5%, January 1, 2018: + 5%, and July 1, 2018: + 5% “, explained the head of the Treasury.

He advocated by the same token the launching of a sensitization information campaign aimed at fully apprising the insurers of the newly-adopted regulations”.

The latest tariff readjustment of the mandatory guarantee linked to vehicle insurance dates back to 2008, according to the same source.