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Insured, drivers and owners: New Insurance law

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Insured, drivers and owners will share responsibility in case of traffic accidents

Illustrative image of traffic accident.Illustrative image of traffic accident.

Illustrative image of traffic accident. Courtesy: @TraficoCPanama

05/24/2018 - 4:14 PM

The National Assembly made an amendment to Law 68 of 2016, which regulates basic compulsory insurance in the case of traffic accidents.


When the law came into force, it stipulated that the driver of the vehicle responsible for the accident would be the one who would have to pay for the damage caused.

At the time it was criticized because the owner of the vehicle and the insurer were exempt from liability.


With the new modification, published this Thursday, May 24 in the Official Gazette, the responsibility falls on the insurance company issuing the policy, the driver and the owner of the vehicle.

It is also detailed that the insurer will respond up to the limit of the amount stipulated in the policy, while the driver and the owner will "respond jointly and severally" for the amount that corresponds to pay.

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This is not at all clear, but what I think it's saying is that the driver of a vehicle, if the driver is not the owner, in the past has been held liable in the event of a traffic accident. I have to wonder if expats who have had employees driving their cars have been aware of this. I certainly wasn't.

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