Gov’t Plans to Introduce Vehicle Insurance Package
Drone view of Hulhumale’ street | Photo: MV+
The government is working with local insurance providers to introduce a new motor vehicle insurance package, aimed at covering damages and loss of vehicles, according to Minister of Transport and Civil Aviation Mohamed Ameen.
The initiative is part of broader efforts to overhaul transportation systems and reform the regulatory framework. Speaking on national radio Dhivehi Rajjeyge Adu, Minister Ameen noted that the current mandatory Third-Party Liability insurance only covers legal and financial liabilities when a vehicle causes injury or damage to other individuals or their property.
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To address this regulatory gap, the government is drafting amendments to the existing transportation law. However, the Minister stated that there are opportunities to improve the current framework even before the proposed changes are passed by Parliament.
As part of this approach, the government plans to introduce an additional insurance package within the next two months. This new option, which would be available alongside the existing third-party coverage, is expected to offer more comprehensive protection for vehicle owners, including coverage for vehicle damage and loss.
All registered vehicles in the Maldives are currently required to have third-party insurance, which does not extend to damages incurred by the owner’s own vehicle. The proposed comprehensive package aims to expand this protection and improve road safety outcomes.
