New Third-Party Insurance Policy Increases Coverage and Premiums
A significant change has been made to third-party insurance in Ethiopia, with coverage limits and premium prices seeing substantial increases.
The new policy, which takes effect today, raises the maximum coverage for third-party insurance from 500 birr to 3,000 birr. This adjustment is part of a broader initiative to enhance the protection offered by third-party insurance.
As part of these changes, premium prices have surged by up to 500 percent. This increase aligns with the newly established third-party liability limits, reflecting the expanded coverage now available under the revised guidelines.
According to the updated third-party liability guidelines, the amount allocated for emergency medical services has seen a significant rise. Previously capped at 2,000 birr, the new limit has been set at 15,000 birr, providing greater financial support in case of medical emergencies.
Furthermore, compensation for fatal incidents and bodily injuries has been notably enhanced. The previous limit of 40,000 birr for death-related claims has now been increased to 250,000 birr. Similarly, the compensation for bodily injuries, which was also capped at 40,000 birr, has been raised to 250,000 birr.
These changes aim to provide better protection and more substantial financial support for those affected by third-party incidents, ensuring that the insurance system is more responsive to the needs of policyholders.
