Vehicles to be insured within six months

Transport Authority has said that the regulation pertaining to insurance of vehicles used for land transport has been published in the gazette, and will be enforced within the next six months.

The regulation obligates the insurance of all vehicles used for land transport. Third party insurance should be obtained from an insurance company registered in the Maldives, and damage caused to vehicles have to be compensated within seven days of the accident.

The regulation published in the gazette says that compensation of Rf 60000 for physical damage to vehicles, and Rf 40000 for financial damage will be covered by insurance companies. The premiums will be decided by the insurance companies.

Any uninsured vehicle is liable to a fine of Rf 750.