Cars Importation Freezing Causes Losses For Insurance Sector

Number of insurance business decreased by 1.5% at the end of the first six months of 2017, compared to the previous year, the head of the insurance department of the National Insurance Company and the representative of the National Federation of Insurance and Reinsurance Companies, Ziane Bouziane Mahfoud, said.

Bouziane Mahfoud, who was hosted on the “Morning Guest” program on the first radio channel, asserted that the number of the insurance sector represents more than 50 to 55% of insurance on cars and was affected by the interruption of imports in 2016 and 2017, and thus decreases in this area which is estimated to 3%, and the situation varies from one company to another.
“With regard to the agricultural insurance, the percentage of insurance on agricultural risks decreased because of the scarcity of rainfall with a significant percentage of about 25% compared to the previous period”.
“There is no culture of risk insurance for farmers despite the repeated awareness campaigns through the various media, as the response was weak compared to the number of farmers who rely on support and compensation in case of risks and disasters. The authorities intervene in exceptional cases, as the insurance contract is in place, and the company compensates 80%”.
As for the file of fires in the past summer, the representative of the National Association of Insurance and Reinsurance Companies, he said that the percentage of faithful farmers was virtually not existent, especially in the states of Tizi Ouzou and Bejaia.
On the outstanding issues to compensate the owners of the damaged cars, Bouziane said that since 2014, he began to liquidate all the outstanding files of physical damage by all insurance companies at an average cost of the sector from one million to 30 million centimes, and about 150.000 files, which represents 70 to 80% of the outstanding issues since 2013, and has begun to liquidate the files of 2014 and 2015, while the owners of comprehensive insurance is in their time.
He spoke about securing the community, saying that it is only possible to open banking branches abroad.
“It is not possible to secure those who practice unauthorized trade or do not have a craftsman card”.