Libya issues decision regulating compulsory civil liability insurance

Libya's Minister of Economy and Trade has issued a decision to regulate compulsory civil liability insurance stemming from car accidents. Decision (400/2026) aims to bolster the protection of victims and policyholders within a more effective regulatory structure. The new resolution establishes a mandatory process for settling claims and disbursing compensation swiftly and transparently. This initiative seeks to minimize disputes and uphold principles of justice and financial security for those affected.

“

The regulation aims to enhance the protection of the rights of victims and policyholders in accordance with a more efficient regulatory framework.

The Ministry highlighted that this decision aligns with its broader objectives to advance the Libyan insurance market. The goal is to elevate the sector's regulatory and technical capabilities, ensuring both the long-term viability of insurance companies and the safeguarding of beneficiaries. The Ministry emphasized that this regulation marks a significant advancement in modernizing insurance legislation.

“

The resolution provides a binding mechanism for the settlement of claims and the payment of compensation quickly and transparently, reducing disputes and establishing the principles of justice and financial protection for affected families and individuals.

It is expected to strengthen the insurance sector's role as a cornerstone of economic stability and social protection. The updated framework provides clear procedures for estimating and disbursing claims, contributing to a more robust and reliable insurance landscape in Libya.

“

This step comes as part of its efforts to develop the Libyan insurance market and raise its regulatory and technical efficiency, to ensure the sustainability of companies and the protection of beneficiaries alike.