Insurance laws Eritrea
Insurance laws in Eritrea are primarily regulated by the Ministry of Finance and the Insurance Regulatory Authority. The legal framework is guided by national proclamations and a commercial code that governs the operation of financial institutions.
Here are some key points about insurance laws and the insurance industry in Eritrea:
Regulation and Supervision: The insurance sector is regulated by the Ministry of Finance and the Insurance Regulatory Authority. The National Bank of Eritrea also plays a supervisory role, as outlined in its proclamations, such as the Bank of Eritrea Proclamation No. 93/1997 and the Financial Institutions Proclamation No. 94/1997.
National Insurance Corporation: The dominant player in the Eritrean insurance market is the National Insurance Corporation of Eritrea (NICE), a state-owned enterprise that was established shortly after the country's independence in 1992.
Compulsory Insurance: Some types of insurance are mandatory in Eritrea. The most prominent example is compulsory motor vehicle third-party and fare-paying public transport passengers' insurance, as stipulated by Proclamation No. 119/2002.
Types of Insurance: The Eritrean insurance market offers a variety of products, including:
Motor insurance (third-party and comprehensive)
Life insurance (individual and group policies)
Health insurance
Property insurance (fire, burglary, etc.)
Workmen's compensation insurance
Marine and aviation insurance
General accident insurance
Policyholder Rights: Eritrean law, including the Commercial Code, defines the rights and obligations of both insurers and policyholders. Insurance contracts must be transparent, and a formal complaint can be filed with the Insurance Regulatory Authority in case of a dispute.
Foreign Investment: While the government has expressed a desire for more diversified foreign direct investment (FDI), the legal and regulatory environment for foreign investment in Eritrea, including the financial sector, is generally considered to be non-transparent and subject to government control. The country's legal system, while based on a combination of Italian civil law and British common law, lacks a unified and publicly accessible legal framework.
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