|
 Following
the cabinet’s meeting on 12th December 2002,It was decided to
apply as of April 5th 2003 decree no 9585, that defines the
application of the law decree 105 on the compulsory motor policy dated 30
June 1977.
As of this date you are
required to purchase a motor bodily injury policy that covers bodily injury
caused to third party resulting from a road accident.
The Law
Bodily
injuries caused to third parties resulting from a road accident are covered.
But after settlement of the claim the insurance company has the right to
start a recovery procedure from the driver if his liability is ascertained
under the following circumstances:
1.The
proven fact that the car driver has been under the effect of alcohol or
any drugs,
2.The use
of the car for any purposes other than those stated in the car license,
3.The car
driver does not have a driving license,
4.The car
has not passed the mechanic check on due time and is still being driven
under unacceptable mechanical conditions,
5. In
case of critical driving mistakes such as:
a)
Driving in the
wrong way, running through the red light, in case the number of
passengers in car exceeds the limit stated in the car license and in
case of overweight for trucks and vans.
b) A false declaration for policy issuance
6.
In
case there’s a proven fact that the accident was intentionally provoked
Unless extended by a special endorsement on the material damage, the
compulsory motor policy does not cover:
1.Medical
expenses due to bodily injury accident caused to the driver and any of the
car passengers being family members, lawyers of the car driver, and
contractual to the car driver.
2.Death caused to the driver or the passengers,
being family members, lawyers of the car driver, and contractual to the car
driver.
How does the law apply to you?
-1- if you have paid your mechanic taxes prior to the application of the
law,
a)
And your running policies covers bodily injuries with a limit of $500,000
(750,000,000 LBP) and above, call your Insurance Company/ Broker and request
a certificate until the expiring of your running policy.
b)
But your active policy covers bodily injuries with a limit less than
$500,000 (750,000,000 LBP) call and request an endorsement from your
Insurance Company/Broker to adjust the third party liability limit to the
required amount by paying the relative premium.
-2- if you have not paid your mechanics taxes
prior to the application of the law
a)
And your active policy covers bodily injuries with a third party liability
limit, which is $500,000 or 750,000,000 LBP, and above call and request a
certificate from your Insurance Company/Broker until the expiry of your
active police or until your mechanic taxes are due.
b)
But your active policy
covers bodily injuries with a third party liability limit less than $500,000
or 750,000,000 LBP call and request an endorsement from your Insurance
Company/Broker to adjust the limit to the required amount by
paying the relative premium until the renewal of your policy.
-3-If your mechanic taxes are due before the
renewal of the policy:
You have to purchase a Motor
Bodily Injury policy for a 12 months period. In order to have the same
issuance period for both policies it’s preferable to issue later the
material damage on a short period that will meet the period of the mechanic
taxes.
-4-If the renewal of your policy is due before
your mechanic taxes;
You have to ask for the
issuance of both, the Motor Bodily Injury and the Motor Material Damage that
will have the same expiring date.
Tips:
•
The compulsory motor
policy cannot be cancelled nor refunded nor endorsed.
•
In order to pay your
mechanic tax you will have to buy the compulsory policy which is issued in
terms of 12 months up to 24 (long term)
•
The Material damage
policy could be issued for a short period, for 12 months and less so the
insured can adjust the issuance of the two polices for the same month of the
mechanic tax.
Frequently Asked Questions:
•
What
is the yearly premium on this compulsory police?
75,000 LBP for private sedan cars up to the limit of 750,000,000 LBP
•
What happens in case
of cancellation; change of cars…?
The compulsory policy cannot be cancelled nor refunded nor endorsed
•
Can
you buy a higher limit for bodily injury under the compulsory?
Yes if your insurance company has this option
•
What if you don’t want
t buy the compulsory policy?
You are against the law
|
