Basic categories of insurances under ethiopian law fikadu. Overview ethiopia is the second most populous country in africa, with an estimated population of 90 million in 201445 percent of whom are under the age of 15. But this proclamation strictly prohibited foreign insurers from. There has hardly ever been any work in insurance business in ethiopia that delved into the historical and factual aspects of the industry. Zemen has finalised the formation process by 926 shareholders, who raised 81. The company has a legal entity registered with the licensing and supervisory body of the national bank of ethiopia in accordance with proclamation no861994 and license no.
Under the ethiopian licensing and supervision of insurance business proclamation no. Basic categories of insurances under ethiopian law. A word or term in these regulations shall have the same meaning that it has in the. Over the last decade, ethiopia s macroeconomic performance has been impressive, with an average economic growth rate. Apr 2020 insurance companies in ethiopia latest ethiopian. The first re insurance company in ethiopia best re.
Ethiopia intercepts trafficking of over 880 nationals. Type of insurance companies operating in ethi opia the practice of insurance service in its modern sense is a recent phenomenon which is said only to have been started in the early 1920s. Market power and competitiveness of ethiopian insurance industry and submitted in partial fulfillment of. In the context of the ethiopian insurance industry, the licensing and supervision of insurance. Prior to this proclamation, the bank used to carry out dual activities, i. There are, currently, less than 10 government owned and private insurance companies in ethiopia. These directives are issued by the national bank of ethiopia pursuant to the authority vested in it by article 41 of the.
Nice is the first wholly privately owned insurance company, established in post 1994 ethiopia, to engage in general insurance business. The commercial code of 1960, as published in a separate volume ap p. A lowincome country, ethiopia has made impressive progress in improving health outcomes. Accordingly, the proclamation states that refund will be allowed if the authority is satisfied that excisable goods manufactured in ethiopia or imported into ethiopia. If youre looking for a free download links of insurance practice and marketing. As a prelude to national coverage, in june 2011, the ethiopian. Definitions in this proclamation unless the context otherwise requires. The new law is designed to enact mechanism more severe than the ones in place at this time to control financial. A step on the road to universal health coverage executive summary e thiopia has been implementing communitybased health insurance cbhi schemes as pilots since 2011 with the objective of drawing lessons for eventual scaleup countrywide. Now, therefore, in accordance with article 551 of the constitution of the federal democratic republic of ethiopia, it is hereby proclaimed as follows. Draft investment proclamation ethiopia draft excise proclamation ethiopia draft state enterprises proclamation ethiopia volume 23 cassation decisions prosperity party program. Ii certificate of insurance means a document issued to a vehicle owner or other person having legal obligation.
Visionto be a world class insurer by the year, 2025missionwe provide our customers an efficient and reliable insurance service and engage in investment activities by deploying the right mix of expertise, the state of the art technology and cost effective strategy. Short title this proclamation may be cited as the insurance business proclamation no. Federal negarit gazeta establishment proclamation resources. The company has a legal entity registered with the licensing and supervisory body of the national bank of ethiopia in accordance with proclamation no. Align text of the public procurement manual with the provisions of ethiopian federal government procurement and property administration proclamation no.
As such, by avoiding the necessity to rely on potentially harmful coping responses, such as borrowing at usurious rates, health insurance schemes might protect a households economic welfare both in the short and the longrun. House approves revised vat proclamation ethiopian news. Profile of insurance companies in ethiopia june 30, 2005 268 iv. Non life insurance policies are used to cover property and liability risks. Dec 03, 2017 2 any person who, having been called upon by the national bank under subarticle 4 of article 3 of this proclamation, fails or refuses to submit the documents described therein shall be punished with a rigorous imprisonment from seven to ten years and with a fine from birr 50,000 to birr 100,000. Mar 25, 2020 the first reinsurance company in ethiopia, ethiopian re endeavors to enhance underwriting capacity and solvency of direct insurers through providing technical support and cover against individual and accumulated catastrophic losses. Now, theefore, in accordance with article 55 i of the constitution of the federal democratic republic of ethiopia, it is hereby proclaimed as follows. The corporation came into existence by taking over all the assets and liabilities of the thirteen nationalized private insurance companies, with birr 11 million usd 1. Insurance in ethiopia historical development, present status. Program management and support, funding for the cbhi pilot evaluation, and printing of this evaluation report. The commercial code and the maritme code of ethiopia, insurance 46 provisions 1960 charter 4. Impact of ethiopia s community based health insurance on.
A proclamation to provide for insurance business whereas, the insurance sector plays an important role in economic development through providing insurance coverage against risks, the provision of alternative means for savings and mobilization of financial resources from within and outside the country. Addis ababa july 42019 the house of peoples representatives hpr today unanimously approved the revised proclamation on value added tax. Dec 28, 2011 a new draft insurance proclamation has been submitted to the ethiopian cabinet. Thus, for example, the insurance proclamation does not currently allow cooperatives to write insurance the only institutional entity able to register as an insurance company is a share company. Insurance against damages or property protects the insured against loss caused by direct physical damage to real and personal property. Ethiopian insurance corporation addis ababa, ethiopia. Licensing and supervision of insurance business ethiopian legal. Ethiopia is to replace the money laundering and terrorism financing proclamation in effect for the last three years with a new draft legislation presented to the house of representatives this week.
Old ethiopian newspapers berhanena selam proclamation no. New draft insurance proclamation submitted to ethiopian cabinet. The interagency group for child mortality estimation reported that ethiopia has achieved millennium development goal mdg 4, three years ahead of target, with under5 mortality at 68. Business proclamations and regulations ethiopia is to replace the money laundering and terrorism financing proclamation in effect for the last three years with a new draft legislation presented to the house of representatives this week. Federal negarit gazeta establishment proclamation ethiopia. Short title this proclamation may by cited as insurance business amendment proclamation no.
Research report 22 the ethiopian insurance industry and. Provides more than 30 types of non life insurance policies. The draft is significant overhaul of the active insurance directive in ethiopia, the insurance proclamation of 1994. Doc history of insurance in ethiopia waqo guta academia. The new proclamation is intended to boost export oriented business. House approves revised vat proclamation ethiopian news agency. Community based health insurance cbhi schemes in many developing countries emanates partly from a need to provide financial protection against unexpected health care costs and to enhance access to modern health care. Consequently, it created an insurance council and an insurance controllers office, its strange impact in the sector. Definitions in this proclamation, unless the context otherwise requires. The new proclamation indicates conditions through which a refund will be requested for excise tax paid to the authority. An altercation between ethiopian federal police officers has led to a shooting incident at the premises of the central statistics agency.
Please attach me all insurance related proclamations, regulations and. Establishment of the secretariat of the house of peoples representatives and of the house of the federation proclamation. Foreign insurance companies operating insurance business in ethiopia through agents in 1954 265 ii. Jan 23, 20 ethiopia drafting money laundering law written by meron tekleberhan published on 31 december 2012 category. In the context of the ethiopian insurance industry, the licensing and supervision of insurance proclamation no.
Africa insurance company aic is a privately owned professional insurance company established in 1994 in accordance with the licensing and supervision of insurance business proclamation no. Opportunities and challenges for microinsurance in ethiopia. Universal health coverage for inclusive and country. This proclamation may be cited as the vehicle insurance against third party risks proclamation no. Type of insurance companies operating in ethiopia the practice of insurance service in its modern sense is a recent phenomenon which is said only to have been started in the early 1920s. The 18th insurance firm, zemen, is in the last stage of joining the insurance industry, only waiting for final approval from the national bank of ethiopia. Ethiopian insurance corporation eic was established in 1976 by proclamation no. Ethiopian insurance companies have until the 31st of december 20 to collect. Ethiopian insurance corporation has many competitors in the insurance industry. Impact of ethiopias community based health insurance on. A proclamation to amend the public servants pension proclamation whereas, it has become necessary to amend the public servants pension proclamation no. With respect to the legal and regulatory issue, according to zeleke 2007, in ethiopia, there were no insurance laws and a supervisory body put in place until the issuance of the commercial code in 1960 and the first insurance proclamation, proclamation no. Whereas, it has been found necessary to have a system, that enables to protect. List of proclamations and regulations enacted in the period.
Business proclamations and regulations ethiopian business news. This category of insurance covers losses caused by accident or negligence that damages property. Revises its policies regularly and produces new policies based on the countrys current economic development and the demand. Now, therefore, in accordance with article 551 of the constitution of the federal democratic republic of ethiopia it is hereby proclaimed as follows. Mandate of insurance supervisor also to promote insurance business. The rise of domestic insurance companies, the 1960s 49 charter 5. The company is set up with fully paid up capital of 30 million ethiopian birr. Its head office is in addis ababa, ethiopia, and operates through 40 branch offices and 4 licensed contact offices located in addis ababa and different parts of the country.
The first motor insurance policy was issued in 1947 by the south british and all classes of insurance cover. Ethiopia and the government of the republic of gabon ratification proclamation. Most them, especially the private insurance companies. Historical development, present status and future challenges explores the historical trajectories, thoroughly examines its emergence and the tortuous path it has gone through ever since the inception of insurance. Ethiopian public procurement manual hawassa finance.
Insurance in ethiopia historical development, present. The less rewarding trend of insurance regulations in ethiopia. List of proclamations and regulations enacted in the. Foreign insurance companies operating insurance business in ethiopia prior to the enactment of the 1970 insurance proclamation 267 iii. Nyala insurance share company nisco was founded in july 1995 following the liberalization of the insurance business to the private sector in 1994 with the licensing and supervision of insurance business proclamation no. The case of ethiopian insurance corporation aauetd addis. These were phoenix, caledonia, royal, south british, london, union and queensland. Fikadu asfaw and associates law office is a fullfledged corporate and commercial law firm in addis ababa, ethiopia with highly professional attorneys providing legal advice and services to clients throughout the surrounding areas of ethiopia as well as all around the world.
Insurance companies prior to the issuance of the first insurance proclamation 53 5. Republic of ethiopia, it is hereby proclaimed as follows. C is one of the pioneer private insurers established on april, 1995 with a capital of birr 12. Evaluation of communitybased health insurance pilot schemes in ethiopia. Regulations issued by council of ministers of ethiopia. After liberation of ethiopia from italy in 1941, seven insurance companies, most of them british, were established. This proclamation may be cted as the commercial code proclamation, 1960. The greate ethiopian renaissance dam, which has been provided insurance cover by eic eic donated birr 5,000,000 to mekedonia, home for the elderly and mentally disabled people eic donated birr 1. Mezgebe mihretu ethiopian development research institute. Insurance business the national bank of ethiopia was established in 1963 by proclamation 206 of 1963 and began operation in january 1964. Ethiopian insurance corporation eic was established by proclamation no.
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