Insurance laws Bolivia
Bolivia's insurance industry is governed by a legal and regulatory framework that is overseen by the Autoridad de Fiscalización y Control de Pensiones y Seguros (APS), which is the country's Supervision and Control Authority for Pensions and Insurance.
Key aspects of Bolivian insurance law include:
Prohibition of Non-Admitted Insurance: The law specifies that insurance for risks located in Bolivia must be placed with companies legally authorized to operate in the country.
Compulsory Insurance: Several types of insurance are mandatory in Bolivia, including:
Compulsory traffic accident insurance.
Professional indemnity insurance for insurance brokers.
Compulsory accident insurance for workers in the construction field.
Company Licensing and Regulation: All insurance companies, both general and life carriers, must be locally licensed to operate. Composite insurance (combining different types of insurance) is not permitted.
Reinsurance: While there is no state reinsurer or a domestic reinsurance market, foreign reinsurers must register with the APS.
Policy and Market Practices:
Policy wordings are registered with the APS.
The primary policy language is Spanish, but foreign languages are allowed.
Although the Boliviano is the national currency, about 95% of policies are in U.S. Dollars.
Taxes and Charges: Insurance products are subject to various taxes, including Value Added Tax (IVA), Transactions Tax (IT), and a fee for the APS.
Consumer Protection: Consumer rights are protected by the Bolivian Constitution and Law No. 453, which is the "General Law of the Rights of Users and Consumers." This law outlines rights to safe products and services, truthful information, and equitable treatment. The Vice Ministry of Defense of User and Consumer Rights is the body responsible for enforcing these regulations and can impose sanctions for infringements.
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