El Salvador: Mandatory Insurance Law

Under the new law, about 80% of vehicles will have to pay between $ 30 and $ 40 worth of insurance.

Monday, January 17, 2011

Raul Betancourt, executive director of the Salvadoran Association of Insurance Companies (ASES), said that according to preliminary analysis about 556 thousand vehicles would pay this premium.

"The 80%, he said, includes sedans, 4x4s and also pick ups and taxis. These last two would fall in the rate of $ 40 due to a technical study showing that, unlike other countries where motorcycles are the most dangerous vehicles after public transportation, in El Salvador pick ups are the third most dangerous," Laprensagrafica.com reported.

More on this topic

Mexico Demands Additional Insurance From Carriers

January 2013

Central American heavy load carries are opposing the payment of third party insurance demanded by Mexican authorities.

The $18 charge for compulsory insurance imposed by the Mexican government is concerning heavy load carriers in Central America who are threatening to set up a road block next Thursday for an indefinite period of time. This strike would be carried out one day before the measure is implemented.

Zero Competition for Mandatory Insurance in Costa Rica

July 2011

Although competition in compulsory insurance opened up to private operators in January, the market still has only one supplier, the state run INS.

According to the Law Regulating the Insurance Market and CAFTA, from January 2011 the market has been open to competition for compulsory car insurance and occupational risk policies.

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.

Accident Insurance in El Salvador

May 2011

The rating agency Fitch Ratings highlighted the benefits and cautioned about the risks of introducing compulsory insurance for traffic accidents.

An insurance analyst from the rating agency Eduardo Recinos, argues that the new product range, which will be accessible on a massive scale, will impact positively on the growth of the sector.

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