Insurance laws Dominican Republic
The insurance sector in the Dominican Republic is primarily governed by the Insurance and Bails Bond Law, Law 146-02, enacted in 2002. This law provides the framework for all types of insurance and bail bonds within the country, including the regulation of foreign companies operating in the Dominican Republic.
Here are the key aspects of insurance law in the Dominican Republic:
1. Regulatory Body:
The Superintendence of Insurance (Superintendencia de Seguros) is the state-run, decentralized institution responsible for supervising, regulating, and overseeing all insurance, reinsurance, and bail bond activities in the country. It is responsible for issuing licenses to insurance companies, intermediaries (agents and brokers), and adjusters.
2. Types of Insurance:
The law distinguishes between various types of insurance, including:
General Insurances: This category includes a wide range of coverages such as fire and allied lines, natural disasters, vehicle damage, theft, and others.
Life Insurance: Covers risks related to the life and health of individuals.
Reinsurance and Coinsurance: The law also regulates the transfer of risk between insurers (reinsurance) and the participation of multiple insurers in the same risk (coinsurance).
3. Mandatory Insurance:
Certain types of insurance are compulsory:
Motor Vehicle Third-Party Liability Insurance: This is a mandatory requirement for all vehicles. It covers damage to other people or their property caused by the insured vehicle.
Occupational Risk Insurance: Part of the Dominican Social Security System, this is a mandatory employee benefit that covers injuries or conditions suffered in the workplace.
Health Insurance: While there is a national health insurance system (Seguro Nacional de Salud - SENASA), which has different tiers based on employment status and income, having additional private or international health insurance is common and highly recommended, especially for expatriates and tourists.
4. Insurance Intermediaries:
Insurance intermediaries must be licensed by the Superintendence of Insurance. The law defines and regulates different roles, including:
Insurance Brokers: Represent the client and are authorized to arrange insurance of all kinds.
Insurance Agents: Represent a specific insurance company.
Insurance Adjusters: Investigate and determine the value of damages from a claim.
5. Insurance Company Requirements:
Capital and Ownership: Local insurance companies must be incorporated as corporations under Dominican law, with at least 51% of their capital and a majority of the board of directors being held by Dominican nationals.
Authorization: To operate, both national and foreign insurance companies must file a request and be authorized by the Superintendence of Insurance.
6. Contract Law and Consumer Protection:
Premium Payment: For a policy to be in force, the premium must generally be paid in full within the first 10 days of the policy's issuance unless otherwise agreed upon. The maximum payment period cannot exceed 120 days.
Claims: The law establishes rules for the process of filing and resolving claims, including a two-year statute of limitations for the insured to take action against the insurer and a three-year period for third parties. Arbitration is a common method for resolving disputes.
Market Value: Properties are generally insured at their market value, and the insured is responsible for providing and maintaining an up-to-date value in the application.
It is worth noting that there have been discussions and proposals to reform Law 146-02 to make the market more transparent, efficient, and aligned with modern international standards, including regulations related to money laundering prevention.
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