Compulsory Bodily Injury – Insurance Policy Form
Legislative decree 105 of the compulsory insurance against civil liability for bodily injuries caused by road vehicles towards others
Definition of the minutes of application of the legislative decree concerning compulsory insurance against civil liability for bodily injury caused by road vehicles towards others
The Compulsory Insurance for Land Vehicles is an insurance contract that covers the Civil Responsibility arising out of the use of a land vehicle for Bodily Injury caused to Third Parties. Consequently, Property Damage caused to Third Party vehicles or any other Third Party Property shall not be covered by this contract. However, we always recommend for the Owner to couple the above insurance with another one covering Civil Liability for Property Damage to other Land vehicles in order to avoid unnecessary incurred losses.
The Compulsory Insurance applies on all land vehicles circulating on Lebanese soil, equipped with any type of engine and for whatever use, exception made to the different vehicles of Security Forces.
It is to be mentioned that starting April 5, 2003 the Decree 9585/2003 setting the minutes of application to the Legislative Decree 105/1977 relative to the Compulsory Insurance for Third Party Civil Liability against Bodily Injury caused by Land Vehicles shall be in force.
The National Council for Compulsory Insurance has laid down a specimen insurance contract which was endorsed by the Minister of Economy & Trade. The Particular Conditions of this contract should be applied by all insurance companies, subject to the Provisions of Articles 6 & 7 of the Legislative Decree number 105 dated 30/06/1977.
It is however up to the citizens, upon acquiring such insurance, to check that these contracts are in line with the legally required coverage.
According to the Provisions of the Law, the Limit of Indemnity and the Tariffs of Compulsory Insurance on different Types of land vehicles were set according to what appears hereunder, on the basis of a minimum and a maximum premium payable by the Insured without any possibility of exceeding such amounts.
The Compulsory Insurance Contract covers Third Party Bodily Injury caused by the vehicle, whether it was driven by its owner or by any other person, custodian or driver of the vehicle with or without the authorization of the owner.
The Insurance Contract may exclude some or all of the persons limitatively listed in the Law from the right to Indemnity, being:
This exclusion shall not apply to the above mentioned persons except in the presence of a text to the Contract clearly removing them from the cover. It is to be mentioned that the Specimen Contract adopted by the National Council for Compulsory Insurance specifically excluded the above mentioned persons.
For the purpose of supervising the application of Compulsory Insurance, and in application to the Provisions of the Second Article of Applied Decree number 9585 dated 30/01/2003, the National Council for Compulsory Insurance issues with each Motor Policy a Special Stamp indicating that the vehicle has a Compulsory Insurance Contract. This Stamp is provided to any Insurance Company licensed to issue Motor Insurance, and the Vehicle Driver should stick the said Stamp on the upper left side of the front windshield, as per the current procedure applicable on the Traffic Tax Stamp (Mecanique). He should also be able to produce the Compulsory Insurance Contract upon demand.
Each owner of a land vehicle should acquire a valid Compulsory Insurance Contract for each yearly renewal of the Traffic Tax (Mecanique) relative to his vehicle. In case he does not comply with the preceding, the Traffic Tax renewal shall be denied & he will be charged with all the related legal penalties.
The Bank is not authorized to receive payment for the annual Traffic Tax (mecanique) without proof from the concerned person that he is the holder of a Compulsory Insurance which is in conformity with the imposed Legal Requirements (for example 750 million Lebanese Pounds in respect of saloon cars).
Persons who do not have at the moment Insurance Contracts against Bodily Injury should immediately proceed to buy such insurance in conformity with the Law Provisions. It is relevant to point out that according to the Provisions of Article 17 of Legislative Decree number 105 dated 30/06/1977, any person is forced to get a Compulsory Insurance Contract, and if he does not, he will be fined and sentenced to a period of two to six months imprisonment or to any of the two preceding sanctions.
Opting for an insurance Contract covering both Bodily Injury & Property Damage is a good idea and a wise option no doubt; it is a token of peace of mind to you and of safety for others. It is also a guarantee to any financial Loss sustained by you. The premium for such a contract in respect of a normal saloon car exceeds in an acceptable portion the price that covers Bodily Injury only. Official Authorities did not however issue a formal tarification for this type of contracts, knowing that the insurance on Bodily Injury stays among the Limits and Provisions set by the Decree and decisions related to the Compulsory insurance on Vehicles. It is relevant to point out that the Law on Compulsory Vehicle’s Insurance imposed only the Contract against Bodily Injury, hoping that later on will see an amendment that will include Property Damage.
No, this is not possible. Mutual Funds are not originally specialized to issue any type of Motor Contracts or even to provide its members with a Tax Fee Stamp for Compulsory Insurance. Only Insurance companies registered near the Ministry of Economy & Trade who have joined the National Council for Compulsory Insurance are authorized to do so. It is relevant to point out that any insurance issued by any other entity than the above mentioned companies is void and null.
In application to the Provisions of new Article 38 of the Law organizing Insurance Companies, amended by Law number 94 dated 18/06/1999, only an intermediary may approach the Public to sell any type of insurance Contracts (and to carry on operations listed in the first Article of the Law on Insurance Companies). Are exempted from the above the Presidents and the members of the Board of Directors in insurance companies as well as the Legal Representatives of foreign institutions. We mean by Intermediary:
It is relevant to point out that it is forbidden on any person to work as an intermediary if he does not possess a special License from the Ministry of Economy and Trade.
In case of an accident, the owner or driver of the insured vehicle is committed to the following:
The owners of vehicles registered outside Lebanon and entering the territory of the Republic of Lebanon shall conclude an insurance contract for the said vehicle, covering the duration of their stay in Lebanon or their passage through the country.
Excluded from this obligation are the vehicles having one of the international car insurance policies, if Lebanon is affiliated with this international organization providing these policies; are also excluded the vehicles registered and insured in one of the Arab countries and whose insurance contract includes the duration of the vehicle’s stay in Lebanon, on condition of reciprocity, and provided that the organization that has issued the contract has a representative in Lebanon authorized to represent it, arrange and pay compensation payable thereto, according to the codes of this statutory appropriation.