El Salvador: Compulsory Third Party Injury Insurance has no Effect

The request for compulsory insurance against third party injuries, which came into force on May 20, shall have no effect.

Tuesday, May 19, 2009

This was confirmed today by Deputy Minister of Transport Luis Felipe Moreno, who had given the order to Central American Traffic Services SA of C.V. (SERTACEN) to demand the existing policy on May 8.

Elsalvador.com reported the vice minister’s statements: "We thought about requiring the insurance because that is what Transport Act 1996 established, and said act has been in effect since February 2001, which was the date when the three extensions approved by the Assembly expired.

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Third Party Insurance Compulsory

May 2009

Starting this Wednesday, a vehicle in El Salvador must be compulsorily insured against injuries to third parties.

Having insurance against third-party injuries will be a requirement for anyone wishing to obtain or renew a vehicle circulation tag beginning next Wednesday. It will also be a requirement for registration or transfers in the Public Registry of Motor Vehicles

El Salvador Could Delay Compulsory Insurance

February 2010

The Legislative is considering pushing until December 31, 2010, the coming into force of third party compulsory insurance.

The discussion comes after a group of insurance companies requested the Legislative Assembly to push this date back.

La Prensa Gráfica explained that the measure would force vehicle owners to pay insurance to cover them in case they affect any third parties.

$1.2 Billion: The Cost of Insecurity in El Salvador

January 2010

Costs related to crime in El Salvador top $1.2 billion each year, or 5.4% of the Gross Domestic Product.

The business sector spends $600 million a year hiring private security services, losses for theft reach $300 million, and the state spends an additional $300 million in hospital and emergency costs.

El Salvador Negotiates Fiscal Pact

June 2010

The business sector will present proposals to solve the fiscal deficit, which may also be the foundation of a social pact.

17 proposals will be presented, aimed at two large areas: reducing spending and increasing revenue.

Jorge Daboub, president of the Salvadoran Chamber of Commerce and Industry, explained: “We understand that the country has a serious fiscal problem, the deficit has worsened due to the country’s negative economic situation. As the private sector, we have produced a document that will give the government tools to correctly address the problem, in a comprehensive and effective way”, reported La Prensa Grafica.

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