–CBL, MoT, LNP, AIL Sign MOU
The days when an accident victim must care for his/her injuries at his/her own expense, and vehicles damaged due to reckless driving of another party, leading the vehicle owner to suffer losses may be over as the Central Bank of Liberia, along with three other institutions, yesterday signed a Memorandum of Understanding (MoU) to ensure that all vehicles in Liberia have compulsory Third Party Insurance.
The other institutions: the Liberia National Police (LNP), Ministry of Transport (MoT) and the Association of Insurers of Liberia (AIL), have agreed to collaborate, with a focus on the enforcement of Third Party Liability Insurance Scheme (TPL) so that the scheme will ensure that TPL provides financial security for the public in the event of injury, death and property damage resulting from motor vehicle accidents.
It will also ensure that all insurance companies underwriting motor insurance comply with the Protocols of the ECOWAS Brown Card Scheme, including all adopted yet unimplemented resolutions emanating from the scheme. The ECOWAS Brown Card Scheme is an extension of the TPL that effectively provides regular updates on its activities to the respective institutions.
The MOU was signed in the conference room of the Central Bank of Liberia. The CBL has the responsibility to promote effective regulation and supervision of insurance companies underwriting motor insurance providers in line with the Insurance Act of 2013 and international best practices.
Governor Milton Weeks said the Central Bank of Liberia (CBL) will ensure the continued financial viability of insurers who underwrite motor insurance in terms of adequate capital, sufficient liquidity to timely settle claims and other liabilities, and will also strengthen corporate governance and ensure that licensed motor insurers comply with the Insurance Act of 2013 and its regulations, as well as other regional laws.
He said the exercise is part of the CBL’s continuous reformation of the sector, adding, “we are also designing further reforms” for the benefit of the Liberian people.”
The Ministry of Transport (MoT), represented by Deputy Minister of Administration/Insurance, Bushuben Keita, said the MoT will enforce Title 38, Chapter 4, which is compulsory motor liability insurance on all vehicles in the country.
He said every vehicle owner will have a liability insurance policy and it will be required by the ministry before a vehicle is licensed. He said the ministry will designate an independent entity to print insurance stickers, along with its distribution to vehicle owners. Keita commended the Central Bank, the LNP and AIL for their collaboration and assured them of MoT’s support.
The Liberia National Police (LNP), represented by Inspector General Gregory Coleman, will design strategies to enforce the TPL that will include the frequency of enforcements and collaborating with the MoT to carry out the enforcement of the TPL. He assured the parties of the LNP’s willingness to collaborate with them, and said a new group of officers will handle the exercise.
The Association of Insurers of Liberia (AIL), represented by H. Momo Fortune, General Manager and CEO of Mutual Benefits Assurance Company, will collaborate with the Ministry of Transport and the Liberia National Police to enforce the TPL in terms of compensation, the frequency of enforcements, and the production and issuance of stickers for vehicles.