Paraguay’s Insurance Sector Pushes for Mandatory Automobile Insurance

Juan Francisco Pérez, head of the Paraguayan Association of Insurance Companies (APCS), explained that the sector will seek to relaunch the project to establish mandatory automobile insurance (SOA), which was approved at the time by the Senate, but that did not advance later.

Pérez explained that Paraguay is the only country in the region without this instrument and emphasized the need to have this type of insurance. “It is a project that the insurance companies really want to see come out (…); We want to work again with the people of the Central Bank (of Paraguay), of the Superintendency of Insurance, with the people of Congress and try to get that project out, ”he said.

According to what the background indicates, the purpose of the proposal is to create the mandatory insurance called SOA as an instrument to cover damages to people in land vehicular traffic accidents that require medical, hospital, surgical, or pharmaceutical assistance or cause disability or death. of the injured The application of the insurance aims to be mandatory for all automotive or motorized vehicles (including motorcycles) that circulate on public land roads, within the national territory.

Regarding the model that is sought to be implemented in our country, the president of the APCS indicated that the administration of the funds would be in charge of an insurance group made up of all the local insurance companies that are interested in participating, while the collection of the drivers would be made through collection agencies throughout the country. The idea is that the policy is required of any person who carries out the procedures related to the qualification of their vehicle, while this document may be required in the controls of motorists and motorcyclists, among other issues to be discussed within the framework of the initiative.

From the Association of Insurance Companies they will seek to reinvigorate the issue of compulsory insurance, explained its president. In the legislative sphere, there is a bill with a medium sanction.