Regulatory Alerts2023-08-24
Added · Updated
Motor Insurance Minimum Premium Rate Directive No. SIB/60/2023
The National Bank of Ethiopia establishes minimum premium rates for own damage motor insurance, prohibiting insurance companies from charging premiums below these specified flat rates. The directive sets specific percentage thresholds for various vehicle categories, such as 1.01% for private vehicles and 2.86% for public service vehicles with up to 16 seats. Any premium rate alterations made in December 2022 are declared null and void, and insurance companies must submit their own premium rates to the regulator within one month of the directive's effective date. Breaches of these minimum rates incur a penalty of 25,000 Birr per violation, and the directive enters into force on August 24, 2023.
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