Lebanon – Penalty Fees for not insuring the Car: 1 Million LBP
Monday, 08 10 2015, Category: Insurance and Reinsurance, Country: Lebanon
Which excuse can be provided by the Ministry of Economy and Trade as a reason for not preparing the draft executive decree for mandatory car insurance? Especially that draft decree project, when prepared, would not be a controversial issue among the members of the Council of Ministers.
This is because it does not carry the Lebanese Treasury any burden, but on the contrary, it enhances their resources, both from finance charge fees collected by the insurance companies under the insurance premiums Law and the 5 percent of the premium. Also, it enhances its revenues from income tax that is imposed on the insurance companies as a FORFAITAIRE tax collected by the Treasury from insurance premiums earned by insurance companies, whether the results were winning or losing at the end of each fiscal year.
In addition to the above, the compulsory car insurance provides a social guarantee for the victims of car accidents or their families in case of death, it also provides a guarantee to the owners of the property exposed to damage from an accident caused by the car.
Source: Al Bayan Magazine