Bill Tabled to Make Comprehensive Motor Insurance Compulsory

A bill proposing to make comprehensive motor insurance mandatory for all road vehicles has been submitted to parliament, with its first reading scheduled for today’s sitting.

The amendment to the Road Traffic Act was introduced by opposition MP Mohamed Ibrahim (Kudu) of the Maldives Democratic Party (MDP). If passed, the change would replace the current requirement for third-party insurance with comprehensive cover.

Under existing law, motorists are required to hold third-party insurance to compensate for damage to a person, place or property caused by an accident. The proposed amendment would instead require drivers to take out comprehensive motor insurance before operating a road vehicle.

The bill sets out minimum requirements for a comprehensive policy, including cover for:

• Death or bodily injury of a third party, and damage to third-party property resulting from an accident;
• Direct damage to a private vehicle caused by an accident, including rollover or accidental impact;
• Damage caused by fire, theft, vandalism or wilful acts of vandalism;
• Damage arising from natural disasters such as flooding, storms and other weather-related events
• Any additional matters prescribed under regulations made pursuant to the Act.

The government has also submitted a new bill seeking broader changes to the existing Road Traffic Act. Details of the proposed government amendments have yet to be debated.