Insurance laws Burundi
The insurance legal framework in Burundi is governed by the Insurance Code of 2014, which modernized the country's regulations and brought them more in line with international standards. This code introduced a new structure for the sector, defining the rules for insurance companies, intermediaries, and policyholders.
Key aspects of insurance law in Burundi include:
Regulatory Body: The main regulator and supervisor of the insurance industry in Burundi is the Agence de Régulation et de Contrôle des Assurances (ARCA). Established in 2012, ARCA is responsible for licensing, controlling, and supervising the activities of insurance and reinsurance companies and intermediaries.
Compulsory Insurance: The Insurance Code of 2014 significantly expanded the types of mandatory insurance. These are in place to ensure public safety and financial security. Key examples include:
Motor Third-Party Liability Insurance: This is compulsory for all motor vehicles to cover damages and injuries to third parties.
Professional Indemnity Insurance: This is required for professionals like doctors and lawyers to cover professional liability.
Civil Liability Insurance: This is mandatory for operators of commercial buildings against risks like fire or explosion.
Construction Risk Insurance: This is a requirement for construction projects.
Property Insurance: Insurance for administrative buildings against fire or explosion is also compulsory.
Transit Insurance: This is required for the import of goods.
Market Structure: The Insurance Code also introduced a number of new provisions to strengthen the market. For instance, it requires the separation of life and non-life insurance companies and sets higher minimum capital requirements for insurers.
Non-Admitted Insurance: The law generally prohibits non-admitted insurance, meaning risks must be placed with locally licensed insurers. However, there are exceptions for risks where local capacity is unavailable, allowing them to be placed with unauthorized insurers.
Consumer Protection: The Insurance Code provides a legal framework to protect policyholders, outlining their rights and obligations and ensuring that insurance companies operate in a transparent and fair manner.
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