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10 Thousand Billion Unpaid Insurance Bills For Businessmen And Public Companies!

June 9, 2021

The dues of companies owned by businessmen and even public institutions that have not yet been paid off by insurance companies amounted to 100 billion dinars – 10 thousand billion centimes – this June, after it was equivalent to 6 thousand billion centimes in September 2020, due to the failure of these dealers to pay the accumulated insurance royalties.

Some insurance dealers attributed the reason for this situation to the state of economic, commercial and industrial stagnation as a whole, while the National Federation of Insurance and Reinsurance Companies submitted a request to the Ministry of Finance to review Article 17 of Law 95-07 to put an end to these abuses.

A source from the National Federation of Insurance and Reinsurance Companies said that the unpaid bills and outstanding dues of insurance companies with businessmen and public and private dealers are constantly increasing, reaching 10 thousand billion centimes today, after it was equivalent last September to 6 thousand billion centimes, referring to the woeful situation experienced by economic dealers due to the continuing adverse repercussions of the Corona virus on the national economy, in addition to the impact of the economic crisis inherited before 2019, as a result of the collapse of oil prices, the decline in imports and the stagnation of investments.

This led to the bankruptcy of a large number of companies whose debts to insurance companies have remained outstanding until now.

The latter also said that the insurance companies had previously requested to stop selling products before payment, meaning the loss of the right to compensation for the customer who did not pay royalties, and this is through the Supplementary Finance Law for the year 2021, but this request was not accepted, as it deposited an application with the Ministry of Finance requesting the amendment to Article 17 of Law 95-07, which “prevents the insurance contract from entering into force except after the payment of royalties, except in the event of another agreement,” as the request submitted to the Ministry of Finance included canceling this condition and exception, by making the customer’s compensation always linked to the payment of insurance companies’ dues.
The latter also submitted a request to review the insurance law, which has been on the government’s table since 2015, but it has not yet seen the light of day.

As a result of this bleak situation, insurance companies are facing a severe case of suffocation, and they have witnessed a crisis of declining incomes since 2018 due to the suspension of importing cars, which represent 51 percent of these dealers’ financial portfolio.

The car market crisis has severely affected the situation of insurance companies, which are facing stifling conditions today. Not to mention stopping the movement of travel, as travel insurance is the second best-selling product of these companies, while the economic repercussions of the Corona virus have had major effects on the incomes of insurance companies, as a result of the closure of a number of commercial facilities and the declaration of a large number of insurance clients’ bankruptcy.