Overview
Proclamation No. 799/2013 establishes mandatory third-party vehicle insurance in Ethiopia to protect victims of motor vehicle accidents. It requires all vehicles on Ethiopian roads to have valid insurance coverage against third-party risks (death, bodily injury, and property damage). The Proclamation also establishes an Insurance Fund Administration Agency to administer compensation.
Key words and Phrases
Vehicle, Third Party, Insured, Insurer, Victim, Ministry of Transport, Yellow Card, Insurance Policy, Certificate of Insurance, Insurance Sticker, Vehicle Insurance Against Third Party Risks, Insurance Coverage, General Insurance Business, Notice of Accident, Claim for Compensation, Emergency Medical Treatment, Insurance Fund, Foreign Registered Vehicle
Key Definitions
| Term | Definition |
| Vehicle | Any wheeled motor vehicle, semi-trailer, or trailer for road use (excluding wheelchair and bicycle) |
| Motor Vehicle | Vehicle moving by mechanical or electrical power |
| Third Party | Any person other than the insured, their family members, driver, or employees |
| Certificate of Insurance | Document issued to vehicle owner confirming insurance coverage |
| Yellow Card | Certificate for cross-border insurance under COMESA protocol |
| Insurance Fund Administration Agency | Agency established to administer compensation |
| Emergency Medical Treatment | Medical services at accident site, during transport, or in emergency wards |
| Compensation | Money paid to accident victims by insurance companies or the Agency |
| Bodily Injury | Injury including temporary, partial permanent, or fully permanent damage |
Mandatory Insurance Requirement
- No person may drive, use, or permit a vehicle on a road without valid third-party insurance coverage
- Ministry of Transport may exempt certain vehicles and issue implementing directives
- Insurance policies must cover:
- Death
- Bodily injury
- Property damage
- Emergency medical treatment expenses
Insurance Policy Provisions
- Insurance companies transacting general insurance are obligated to issue third-party policies
- Premium tariffs determined by the Council of Ministers based on Agency studies
- For repeat accident offenders, Ministry may issue directives on applicable measures
- Certificate of insurance issued alongside policy containing:
- Insured name/address
- Vehicle identification details
- Policy commencement/expiry dates
- Policy conditions
- Persons entitled under policy
- Insurer name/address
Certificate of Insurance
- Valid for minimum 1 year from issuance
- Insured must surrender certificate and sticker upon policy termination
- Insurer must issue replacement if lost/mutilated
- Insurance sticker must be displayed on vehicle
- Absence of sticker indicates absence of valid insurance
Liability Coverage Limits
| Type | Compensation Amount |
| Death (one person) | Minimum Birr 5,000 – Maximum Birr 40,000 |
| Bodily Injury (one person) | Maximum Birr 40,000 |
| Property Damage | Maximum Birr 100,000 |
Additional Liability Coverage
- Collision, fire, explosion
- Falling objects from vehicle
- Damage from vehicle movement
Claims and Court Judgments
- Insured must notify insurer of accident immediately or within 10 days
- Third parties can submit claims directly to the insurer
- Insurer must pay court judgments against insured, even if policy would be void
- Medical expenses included in compensation amount
Emergency Medical Treatment
- Birr 2,000 emergency treatment available regardless of third-party status
- Medical institutions must provide emergency treatment
- Medical institutions can claim expenses under Ministry directive
Insurance Fund Administration Agency
Establishment and Role
- Agency established by Council of Ministers regulation
- Board manages the Agency
- Agency supervises compensation payments and insurance Fund
Insurance Fund
- Funded by fund tariff (percentage added to premium)
- Additional sources determined by Council of Ministers
- Fund tariffs determined based on Agency studies
- External auditor appointed by Board for annual audits
Compensation from the Fund
- Agency compensates third-party victims when:
- Insurance company is insolvent
- Vehicle is uninsured
- Vehicle cannot be identified
- Agency can claim reimbursement from insurer/insured later
- Agency can take over victim’s rights against insurer
Foreign Registered Vehicles
- Must have valid certificate/insurance sticker
- If not issued locally, must produce Yellow Card or equivalent proof
- Coverage must meet minimum liability limits under this Proclamation
Offenses and Penalties
- Driving without valid insurance: fine up to Birr 3,000 or imprisonment
- Vehicles may be impounded
- Driving license may be suspended
- Insurance companies refusing to issue policies may be fined
Miscellaneous Provisions
- Insurance companies must respond to claims within 30 days
- Ministry can issue directives for implementation
- Rights/obligations of previous Insurance Fund Office transferred to new Agency
- Council of Ministers may amend liability limits
- Repeals The Vehicle Insurance Against Third Party Risks Proclamation No. 559/2008
- Implemented by Vehicle Insurance Policy Against Third Party Risks Premium Tariff and Amount of Compensation Fee Regulation No 554/2024
Effective Date
July 23, 2013
Key Impact
This Proclamation established mandatory third-party motor insurance in Ethiopia to protect accident victims, ensuring compensation for death, injury, and property damage. It also created the Insurance Fund Administration Agency to handle compensation when insurance is unavailable, uninsured vehicles, or unidentified vehicles. The system aims to guarantee protection for all road users.
Leave a Reply
You must be logged in to post a comment.