Algiers – The Algerian Federation of Insurance and Reinsurance Companies announced on Sunday a rise in mandatory civil liability insurance premiums for automobiles, effective January 1, 2025.
Gradual Premium Increases
The adjustments will occur in two phases:
- A 15% increase starting January 1, 2025.
- An additional 15% increase beginning July 1, 2025.
In its statement, the federation explained the need for this adjustment:
“To ensure optimal coverage and address financial challenges tied to automobile civil liability insurance, the premium for ‘civil liability’ coverage will increase by 15% in January and another 15% in July 2025.”
Impact on Policyholders
The rise is described as marginal, given the relatively small contribution of civil liability to overall insurance costs. According to federation president Youcef Ben Messaieh, a car owner currently paying 2,200 DZD for an annual insurance contract will pay approximately 2,530 DZD after the initial 15% increase in January.
Addressing Financial Imbalances
The tariff adjustments come amid a challenging financial environment:
- Rising Compensation Costs: Traffic accidents in recent years have led to significantly higher claims payouts.
- Structural Deficits: The mandatory civil liability insurance segment has faced persistent financial shortfalls, as compensation expenses have exceeded premium revenues.
The federation clarified:
“The increases aim to restore financial balance and ensure continued insurance coverage for all policyholders.”
Commitment to Service Improvement
Insurance companies pledged to accompany this adjustment by enhancing service quality and expediting claims processing. This commitment seeks to mitigate the impact of higher premiums while maintaining consumer trust.
For more updates on economic developments, visit DZWATCH.DZ.
Author: Nor-Eleslam
