Third Party Insurance Compulsory

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

Friday, May 15, 2009

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, "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."

More on this topic

El Salvador: Compulsory Third Party Injury Insurance has no Effect

May 2009

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

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.

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.

Doubts Over Compulsory Insurance in El Salvador

June 2011

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.

Insurance in Panama: Losses in Compulsory Insurance

February 2014

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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