Motor insurance premiums may (significantly) rise in Mozambique
O País / Value of motor insurance rises from 300,000 to three million meticais
On September 15, Ministerial Decree No.59/2017, which resets the minimum value requiring compulsory third party motor insurance, entered into force in the country.
Minimum insurance cover vehicle value had remained unchanged for 12 years, but now rises from 300,000 to three million meticais.
The Insurance Supervision Institute of Mozambique (ISSM) explains that this increase was coordinated with insurance companies.
Rui Tsevete, director of legal services at ISSM, explains that the owner of the car will not pay the three million meticais, but rather a value set by the insurer.
The ISSM argues that the new value is in line with the current socio-economic context.
Although car insurance is mandatory, only 58 percent of vehicles in the country are covered. The Insurance Supervisory Board calls on all motorists to take out car insurance, since failing to do so is punishable by a fine.Source: O País