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
According to Elsalvador.com, "In El Salvador, there are few vehicles with insurance and there are multiple types of coverages. Of the 672 thousand registered vehicles, 12.5% have some type of coverage, not necessarily covering third parties, according to data from the Salvadoran Association of Insurance Companies (ASES). In public transport, the percentage is much higher. About 1,500 vehicles, all recent models, have insurance because they still belong to the distributor and it requires insurance."
The insurance industry has expressed concern about the new compulsory insurance for traffic accidents in the absence of information about the project.
Raul Betancourt, director of the Salvadoran Association of Insurance Companies (ACES in Spanish), said that since they submitted a draft to the Deputy Minister of Transport (which defined coverage, scope, limitations and benefits), about six months ago, there has not been any further contact with the entity.
Compulsory car insurance for third-party damage has ceased to be a great growth opportunity and become a category of losses.
When the enforcement compulsory car insurance policies came into effect seven years ago, it was assumed there it would generate good results, however, the reality is different. Losses in this category exceeded $15 million last year.
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