Insurance laws Algeria
The insurance industry in Algeria is primarily regulated by the state, and the legal framework has undergone significant changes since the country's move away from a state monopoly in the 1990s. The sector is overseen by a regulatory body under the authority of the Ministry of Finance.
Here are the key aspects of insurance laws in Algeria:
1. Regulatory Framework and Oversight:
Ministry of Finance: The Algerian insurance market is regulated by a body that falls under the Treasury of the Ministry of Finance. This body, the Conseil National des Assurances (CNA), is responsible for supervising insurance companies, brokers, and agents.
Ordinance No. 95-07: This 1995 ordinance is the foundational law that liberalized the insurance sector, ending the state's monopoly and opening the market to both domestic and foreign private companies. It has been subject to subsequent amendments, notably by Law No. 06-04.
Future Reforms: There has been discussion about a new insurance law that would introduce significant reforms, including the potential for an independent supervisory authority and changes to allow insurers to act as intermediaries in the stock market.
2. Licensing and Operations:
To operate in Algeria, insurance and reinsurance companies must receive approval from the Ministry of Finance.
Unlike some other countries, Algeria permits "composite insurance," meaning a single company can offer both long-term (life) and short-term (non-life) insurance.
The law prohibits "non-admitted insurance," which means insurance contracts on Algerian risks must be written by a licensed company operating within the country.
3. Compulsory Insurance:
Algeria has several classes of compulsory insurance, which are a key part of its legal framework:
Motor Third-Party Liability Insurance: This is mandatory for all motor vehicles.
Property Insurance against Natural Disasters: This is also a key class of compulsory insurance.
Decennial Liability Insurance: This is a type of civil liability insurance for construction professionals, providing coverage for defects that become apparent within ten years of the work's completion.
Workers' Compensation Insurance: This is required to cover work-related accidents and illnesses.
Marine and Aviation Liability Insurance: This is also mandatory.
4. Policyholder Protection:
A fund, known as the "Insured Person's Fund," has been established to protect policyholders in the event an insurance company becomes unable to pay its debts. Its resources come from annual subscriptions from licensed insurance and reinsurance companies.
The law also includes specific provisions on insurance contracts, such as prohibiting certain clauses that would unfairly limit the insured's right to reimbursement.
5. Islamic Insurance (Takaful):
Recent legal developments have made it possible for Takaful insurance (an Islamic alternative to conventional insurance) to be practiced in Algeria, with the conditions and procedures for doing so defined by executive decree.
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