APADEA clarifies Law 320 of August 24, 2022

After the President of the Republic, Laurentino Cortizo, sanctioned Law 320 of August 24, 2022, which guarantees the validity of vehicle insurance policies, for three months, to obtain the revised and the plate or decal of circulation in the national territory, the Panamanian Association of Insurers (Apadea) ruled on the matter and recalled that in Panama all automobile policies that are marketed are for a minimum year.
They reminded vehicle owners that the new Law establishes that the basic compulsory insurance policy for traffic accidents required by the Traffic Regulations must be fully valid at all times.
At the time of obtaining the vehicle inspection certificate, or purchasing the respective license plate or decal, the policy must be valid for at least ninety days.
They also highlight that any motor vehicle or towing unit that travels in the country, or suffers a traffic accident, without having a fully valid basic mandatory accident insurance policy, will have its driver’s license withheld, without prejudice to any other sanction established
the Traffic Regulations. The driver’s license will be returned to you, when the owner presents his compulsory insurance policy.
Another important aspect of the Law that stands out is that if any driver circulates without having their respective basic compulsory insurance policy
of traffic accidents fully in force and is involved in a traffic accident that has caused bodily injury or damage to the property of others, according to the resolution of
court of first instance, the driver’s license and the vehicle involved in the event will be withheld by the ATTT and will be returned once the damages to third parties have been covered.
The expenses generated by the retention and custody of the vehicle will be borne by the owner.
The Insurers must ensure that within the insurance contracts the obligatory nature of the punctual payment of the premium corresponding to the obligatory automobile insurance is established.
They recommended checking if your policy is valid for at least 90 days before renewing your license plate. If not, contact your insurance broker or your insurer to make the necessary adjustments and be able to comply with the Traffic Law.
The legislative initiative, today Law 320 of August 24, 2022, was presented by Deputy Leandro Ávila and modifies articles of Law 14 of 1993 and Law 122 of 2013, related to mandatory traffic accident insurance, and dictates other provisions .