Insurance laws Cameroon
Insurance law in Cameroon is primarily governed by a regional framework, the Inter-African Conference on Insurance Markets (CIMA). Cameroon is a founding member of CIMA, a treaty signed by several West and Central African states to harmonize insurance regulation and supervision.
Here's a breakdown of the key aspects of insurance law in Cameroon:
The CIMA Treaty and Code: The CIMA treaty, signed in Yaoundé, Cameroon, established an integrated organization for the insurance industry in its member states. The CIMA Insurance Code serves as the uniform legal framework, covering aspects from the formation of insurance contracts to the conduct of insurance companies. This code aims to standardize practices and ensure financial stability across the region.
Regulatory and Supervisory Bodies:
The Ministry of Finance (MINFI): At the national level, the Ministry of Finance supervises the insurance industry. It is responsible for licensing, registration, and monitoring the financial stability of insurance companies.
The Regional Insurance Control Commission (CRCA): At the regional level, the CRCA, a body under CIMA, provides oversight and control for all insurance entities in the CIMA zone, including those in Cameroon. The CRCA ensures compliance with the CIMA Code and handles disciplinary actions.
Compulsory Insurance: Several types of insurance are mandatory in Cameroon to protect the public and ensure compensation for victims. The most notable examples include:
Motor Third-Party Liability Insurance: This is a key compulsory insurance for all motor vehicles to cover damages and injuries to third parties in the event of an accident.
Professional Indemnity Insurance: This is mandatory for insurance intermediaries.
Social Security Insurance: This is managed by the Cameroon National Social Insurance Fund (NSIF), which provides coverage for old age pensions, invalidity, and death.
The Insurance Contract: The CIMA Code provides specific rules regarding insurance contracts, including:
Principle of Utmost Good Faith: The insured is required to fully disclose all material facts that could influence the insurer's decision to accept the risk.
"Cash Before Cover" Rule: A policy cannot be delivered, and coverage does not begin, until the premium has been paid to the insurer.
Reinsurance: The CIMA framework also regulates reinsurance activities, including limits on how much a local insurer can cede to reinsurers outside the CIMA zone. This is intended to keep a certain level of premium within the regional market.
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