Demonopolization of Mandatory Auto Insurance

The Superintendency of Insurance in Costa Rica is planning to start the process of opening up the market for compulsory automobile insurance in the first quarter.

Thursday, January 8, 2015

In order to liberalize the market for compulsory automobile insurance, there first needs to be a review and approval of a decree which will focus on the regulation of the sale of insurance from the National Insurance Institute (INS) to private companies. At present, only the INS sells compulsory automotive insurance, a fee which is included in the payment of the road tax.

The INS's Chief Executive, Sergio Alfaro, told that "... It is time that the INS and private companies sold car insurance, so that customers can have more choices ... In addition what is also needed when this type of insurance is opened up to the private market, is for not only policies for cars to be sold but for motorcycles as well. "

For its part, the general superintendent of insurance, Tomás Soley, added "... One of the points that needs to be discussed and regulated in the decree is insurance coverage for motorcyclists. ""... The Superintendency of Insurance had valued the decree imposes a minimum coverage of $5,500 and increase progressively each year, as the current amount is insufficient to pay the medical expenses of injured people to the Costa Rican Social Security Department. "

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