International Practice Related to Compulsory MTPL Insurance

Abstract

Compulsory MTPL insurance has several public goals, including
fairness, road safety, consumer savings, solving road problems and
feelings of safety. Studies have shown that an increased number of
motor vehicles increases the number of road accidents and road
conditions are getting worse. At the same time, the social responsibility
for road accidents is shifting from society to government.
That is where the compulsory form enters the field.
Compulsory MTPL insurance is a relatively new product for developing
countries and its advantages are vague for society. In most
cases, compulsory insurance is perceived as an additional charge
that burdens the vehicle. This term is less common and not properly
understood in developing countries.
In order to have a better understanding of compulsory MTPL insurance,
this article discusses compulsory forms and stages of development
of MTPL insurance in different countries. It also focuses
on the recommendations for developing countries to properly implement
the compulsory form in their own society.