Insurance of Buildings, Cars and Equipment of Ministries In Private Sector Barred

The Algerian Government ordered public institutions and official bodies from Ministries and affiliated organizations to exclusively insure their cars, equipment and premises at the public insurance companies and not at the private ones.

This is in a directive issued by a number of directorates in the various provinces of the country to the institutions of their sector enjoining them to revert to public insurance companies, as some of them are threatened with looming bankruptcy in the absence of customers.

And this is in accordance with a firm instruction issued by the Director of Vocational Training and Education, conveyed to the Managers of the various institutions and bodies of the relevant sector of which “Echorouk” received a copy. 

The latter asked the different Managers to provide him with all the measures taken in the framework of the insurance contracts  to be sealed with the public insurance institutions, stressing that he attaches great importance to this instruction and the extent of its full implementation.

Despite the fact that the new constitution confirms that there is no difference between public and private institutions in Algeria, the woeful financial situation  now besetting several of  manifold public  companies, prompted the Government to adopt the option of solidarity with these institutions, especially those involved in the flagging insurance sector.

The import of vehicles, which represent the lion’s share of the sector’s turnover in terms of insurance contracts, continued to dismally plummet in 2017 and was set at only 3 percent. 

Public insurance companies were the most affected by the stiff decline in their turnover, according to the statistics issued  for the first six months of the current year.

The financial cost of vehicle accidents covered by insurance companies during the first six months of the current year was estimated at 1,230 billion centimes (DA), compared to 2,310 billion centimes (DA)  during the same period last year, with a steep collapse of 47.8 percent. 

The insurance-related files that were settled decreased by 31.8 percent, compared to 3,640 billion centimes (DA) last year, while the number of files that must be paid premiums rose by 7.6 percent, that is a total expenditure of 300 billion centimes (DA).