Wednesday, June 12, 2024

Insurance coverage starts for vehicles traveling to Eritrea


Insurance companies have responded to the recent peace accord between Ethiopia and Eritrea by providing coverage for vehicles transporting goods to Eritrea.
As members of COMESA, both countries respect yellow card insurance, requiring vehicles to have insurance coverage when they cross into another country. The COMESA Yellow Card is a motor vehicle insurance scheme valid in all participating countries. It covers third-party liabilities and medical expenses for the driver of a vehicle and their passengers, should they suffer any bodily injury as a result of an accident to an insured vehicle.
United, Awash, and Ethiopian Insurance Companies are registering trucks to provide motor insurance coverage, which will cover bodily injury and property damage.
Meseret Bezabih, CEO of United Insurance told Capital that the new insurance coverage will benefit both economies.
“Of course cargo trucks are carrying products to be sold which means money for both buyer and seller so an accident means loss not only to the truck but the product as well, thus insurance gives confidence in the transaction in both countries.”
She went on to explain how accident reports will be filed.
“When an accident happens in an Ethiopian vehicle we will ask for a clarification report about the accident from the Eritrean government based on their internal policy and then we will pay compensation for damage.”
Birhane Zeru, President of the Ethiopian Transport Employers’ Federation said starting the insurance will be a shot in the arm for the economy in both nations.
“You never know what will happen when you drive so it is safer to have insurance coverage. Our vehicles are starting to transport goods to Asmara and we are glad to see that insurance companies have committed themselves to providing insurance coverage.’’
In 1998 the two nations fought a bloody war but thanks to a peace agreement in July, relations between the two countries have quickly thawed and many sectors have restarted. Transportation, telecom, trade and borders have all re-opened which has restored relationships and given a boost to the regional economy.

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