Insurance laws Chad
Chad's insurance sector is regulated by a regional body, the Interafrican Conference of Insurance Markets (CIMA). As a founding member of CIMA, Chad's insurance laws are based on the standardized legal framework known as the CIMA Code.
Here's a breakdown of the key aspects of insurance laws in Chad:
Regulatory Framework
CIMA Code: The CIMA Code is the primary legal text governing the insurance industry in Chad and the 14 other member states. It provides a harmonized set of rules for the entire zone, covering everything from the licensing of insurers to the rights and obligations of policyholders.
National Oversight: While the CIMA Code sets the overall framework, Chad's national government, through its Ministry of Finance, has a directorate responsible for overseeing the local market. This national directorate works in collaboration with CIMA's regional supervisory body, the Regional Insurance Control Commission (CRCA).
Key Provisions of the CIMA Code
Licensing: Any company wishing to operate in Chad's insurance market must be a CIMA-accredited company. The CIMA Code specifies the legal form of insurance companies and sets minimum capital requirements to ensure financial stability.
Non-Admitted Insurance: The CIMA Code has a general prohibition against non-admitted insurance. This means that risks located in Chad must be insured by companies that are licensed and operating within the CIMA zone.
"Cash Before Cover" Rule: A key principle in the CIMA Code is the "cash before cover" rule, which generally requires that the insurance premium be paid to the insurer before the policy becomes effective. This is intended to prevent late payments and ensure that insurers have the necessary funds to cover claims.
Protection of Policyholders: The CIMA Code contains rules for market conduct, dispute resolution, and consumer protection. It aims to protect the interests of policyholders and ensure that insurance contracts are fair and transparent.
Compulsory Insurance in Chad
Motor Third-Party Liability: As in many countries, this is a mandatory insurance for all vehicles. It covers bodily injury and property damage that the insured vehicle causes to third parties.
Professional Indemnity Insurance: This is a mandatory requirement for insurance intermediaries, such as agents and brokers.
Other Mandates: The CIMA Code and local regulations also require certain types of professional and business liability insurance, such as for aviation, maritime transport, and specific professions, to protect against risks associated with those activities.
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