Revised Third-Party Insurance Law Increases Compensation for Accidents
The revised Third-Party Insurance Law has raised compensation for emergency medical services to 15,000 Birr and for fatal accidents to 250,000 Birr. The changes aim to better align with current economic and social realities.
Third-Party Insurance Law Revised and Implemented
The revised Third-Party Insurance Law, based on Road Safety Authority Regulation 554/2016, has come into effect nationwide.
According to Yohannes Lemma, Executive Director of Road Safety and Capacity Building at the Road Safety and Insurance Fund Service, the compensation for emergency medical services under the revised Third-Party Liability Directive has increased from 2,000 Birr to 15,000 Birr.
He explained that the previous 2,000 Birr was insufficient even to cover basic medical treatment or issue a medical card.
Additionally, the compensation for fatal accidents caused by drivers has been raised from 40,000 Birr to 250,000 Birr under the new amendment.
While monetary compensation cannot replace a life, it is intended to address temporary social and economic challenges, he noted.
Similarly, the penalty for causing bodily harm has been increased from 40,000 Birr to 250,000 Birr, Yohannes Lemma informed Ethio FM.
The Executive Director stated that this decision was reached after consultations with regional and city administrations, as well as victims and health professionals.
He emphasized that the previous penalties for medical expenses, bodily harm, and death were inconsistent with the current national and continental realities, prompting the revision and implementation of the new law.
Sources
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