Informs regarding changes motor third party liability insurance

As per March 1, 2016 the limit of liability for damages caused to third parties has been increased from Awg 90,000 to Awg 150,000, following a decision made by our local authorities.

The members of the Insurance Association of Aruba (IAA) recognize this as an important step in ensuring sufficiency of cover for a protection that is compulsory in nature, and has already taken steps to ensure that all policy contracts carry at least this amount of indemnity in the event of a covered loss.

In addition to the above and following several years of deliberations, the authorities have authorized an increase of 6% of the premiums for third party liability, also as per March 1, 2016.

The IAA welcomed this much needed raise, but indicated that it falls much lower than expectations. Insurance companies will apply this increase according to the possibilities of their IT systems, but informs the public to expect a slight increase in their motor premiums as of May, 2016.

The IAA strongly urges all motor policyholders to contact their insurance company or broker to find out how these amendments affect their own policies.