New Increases In Car Insurance, Over DZD 20 Billion Losses In 90 days

Insurance companies are preparing to announce new increases in car insurance prices starting from next July, that are ranging from 200 to 300 DZD, knowing that the losses of dealers due to the collapse of the import bill is estimated at DZD 20 Billion between January and March 31, 2017.

Deputy Chairman of the National Association of Insurance and Reinsurance Companies, Hassan Khalifati, told Echorouk, that the number of insurance companies’ turnover collapsed by 10% since the beginning of the current year due to the car import crisis and the ambiguity in the market.
“Joint Commission did not identify the number of vehicles that will enter the national market, during the current year until now, which led to a decline in the percentage of contracts that are concluded with the concerned companies, knowing that the losses of these dealers are estimated at DZD 20 Billion within three months, I.e during the months of January, February and March of this year”.
“Decline in car activity in Algeria is due to the reduction of imports, which led in turn to a decline in the work of insurance companies that rely on the market of vehicles, as the first source of its activity in Algeria, in light of the reluctance of citizens from the rest of the items. Until now the government speaks about 40.000 cars that will enter the Algerian market during the current year, without a decision on the final turnover compared to 83.000 cars last year, which rose to 97.000 vehicles after the appeals that were provided by the authorized agents, while new increases in insurance prices are expected, added to the increases that entered into service last January”.
According to Khalifati, the new increase, which will enter into service from the second half of 2017, is equivalent to 200 and 300 DZD and includes civil liability, while he talks about the damages that are resulting from the illegal promotions of some dealers, which led to the floating and flooding of the market, revealing that the aim is to consolidate and close insurance prices soon, a file which is currently on the table of the Finance Ministry for the final decision after the next legislative elections.
In the language of figures, Khalifeati revealed on the settlement of 78.000 files that are stuck in 2016, with a total cost of DZD 30 billion, while the insurance companies seek to reduce the rest of the files and the accumulation of the years 2013, 2014 and 2015 before the end of the current year,I.e before December,31, 2017, in order to accumulate the files and the delay of citizens to receive their entitlements.
It is known that in the past over 5 million files of compensation for citizens and companies were collected for citizens, especially those who have not received their dues after exceeding the legal deadlines that were set by the Finance Ministry, including those who filed their files in 2011, and most of them are related to road traffic victims, while the government granted a time limit until the end of the year to fold the file.