Photo: Radosław Botev, Wikimedia Commons, CC BY 3.0 plThird-party insurance in Ethiopia
Proclamation 799/2013, cost and cover
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What the law requires
The Vehicle Insurance Against Third Party Risks Proclamation No. 799/2013 (English text) says:
- Art. 3 — no one may drive a vehicle on a road without valid third-party insurance.
- Art. 4(2) — the policy must cover death, bodily injury, damage to property and emergency medical treatment.
- Art. 4(3) — every general insurer must issue it; the premium tariff is set by the Council of Ministers (Art. 4(4)).
- Art. 5 — the insurer cannot limit cover because of the driver's age or condition, the vehicle's power or value, its load, or when and where it is used.
What it does not cover
Under Art. 7, the compulsory policy does not cover: the insured and their family; the insured's employees injured at work; damage to the insured vehicle itself; goods carried for hire; property in the insured's custody; and accidents outside Ethiopia.
How much it pays
The original limits in Art. 16 of the Proclamation were Birr 5,000–40,000 for a death, up to Birr 40,000 for bodily injury per person, and up to Birr 100,000 for property damage. A victim can claim any amount above the limits from the person liable.
In July 2024, Council of Ministers Regulation No. 554/2024 replaced the premium tariff and the compensation amounts with those in a schedule to the regulation. The schedule is not included in the official online copy; the business weekly Capital Ethiopia reported compensation of Birr 30,000 to 250,000 for death and bodily injury and up to Birr 200,000 for property. Ask the insurer to confirm the amounts in your policy.
How much does car insurance cost in Ethiopia?
There are two prices to know, set in two different ways.
The compulsory third-party premium: a national tariff
The premium for compulsory cover is not set by each insurer: Art. 4(4) of the Proclamation leaves it to the Council of Ministers. Regulation No. 554/2024, published on 30 July 2024, replaced the tariff and the compensation amounts with two schedules attached to the regulation. Those schedules are not in the official online copy. According to Capital Ethiopia (press report, 25 August 2024), the cost of insuring a private car went from around Birr 500 to over Birr 2,000. Because the tariff is national, the third-party price for the same vehicle category should be the same at every insurer — ask for it in writing.
Comprehensive (own damage) cover: a percentage of the vehicle's value
Cover for your own vehicle is priced as a rate on the sum insured (the value you insure the vehicle for). The NBE has fixed minimum rates so that insurers cannot undercut each other: under Directive No. SIB/60/2023, Motor Insurance Minimum Premium Rate, in force since August 2023, the own-damage premium may not fall below these rates on the sum insured, net of all discounts and rebates:
| Vehicle category (Directive SIB/60/2023) | Minimum rate on the sum insured |
|---|---|
| Private vehicles | 1.01% |
| Motorcycles | 1.14% |
| Pick-ups carrying own goods | 1.09% |
| Taxi | 1.77% |
| Public service vehicle, up to 16 seats | 2.86% |
| Car hire | 1.58% |
| Three-wheelers and tricycles | 1.70% |
| Agricultural vehicles | 0.58% |
Read as an example (our calculation, not a quote): a private car insured for Birr 2,000,000 may not be charged less than Birr 20,200 for own-damage cover at 1.01%. Charging less breaches the directive (art. 4.2), and the NBE fines the insurer Birr 25,000 for each breach (art. 5). Insurers may charge more than the minimum, so compare quotes.
The NBE also notes that motor insurance shrank by 5.1% in 2024/25 while the number of vehicles kept growing, partly because higher prices pushed owners to buy only the compulsory third-party cover (Financial Stability Report). Before you drop comprehensive cover, read what third-party does not pay.
Choosing a motor insurer
Tulinde does not rate insurers. All 18 licensed insurers write general business, so all of them sell motor cover. To compare them, use the regulator's figures — capital and branch network on the largest insurers and side by side on compare two insurers — and ask each one:
- The third-party premium for your vehicle category under Regulation 554/2024, in writing.
- The own-damage rate and the sum insured it is applied to.
- The excess (the part of each claim you pay yourself).
- How a claim is reported (the Proclamation requires notice within 10 days) and how long payment takes.
- Where the nearest branch is — Ethiopian insurers had 839 branches in 2024/25.
Keep the certificate and sticker together and learn how a cover is checked. If a claim goes wrong, the insurer has 10 business days to answer a written complaint before you complain to the NBE.
Certificate, sticker, claims and penalties
| Rule | What it says |
|---|---|
| Certificate | Valid for at least one year (Arts. 9–10) |
| Sticker | Must be displayed on the windscreen; no sticker is prima facie evidence of no insurance, and the police may detain the vehicle (Arts. 12–13) |
| Notifying an accident | The insured must notify the insurer within 10 days; the victim can claim directly from the insurer (Art. 17) |
| Uninsured or hit-and-run vehicle | Victims are paid by the Insurance Fund held at the NBE (Arts. 19–24) |
| Penalty for driving uninsured | Fine of Birr 3,000–5,000 or 1–2 years' imprisonment (Art. 30) |
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Frequently asked questions
Does third-party insurance cover property damage in Ethiopia?
Yes. Unlike Kenya, Uganda or Tanzania, Ethiopia's Proclamation 799/2013 (Art. 4(2)) requires the compulsory policy to cover damage to property as well as death, bodily injury and emergency medical treatment.
What happens if I drive without insurance in Ethiopia?
A fine of Birr 3,000 to 5,000 or imprisonment of one to two years (Art. 30 of Proclamation 799/2013). The police may detain a vehicle without a sticker.
Who pays if I am hit by an uninsured vehicle?
The Insurance Fund set up by Proclamation 799/2013 pays victims of uninsured or untraced vehicles.
How much is car insurance in Ethiopia?
The compulsory third-party premium follows the national tariff of Regulation 554/2024; the press reported that the cost of insuring a private car rose from around Birr 500 to over Birr 2,000. Comprehensive cover is priced as a percentage of the car's value, with NBE minimum rates — 1.01% of the sum insured for private vehicles (Directive SIB/60/2023).
Which is the best motor insurance company in Ethiopia?
Tulinde does not rank insurers, and the NBE publishes no claims or complaints figures per company. All 18 licensed insurers sell motor cover; compare their capital and branches on the largest insurers and ask each for the premium, the excess and the claims process in writing.
Is comprehensive car insurance compulsory in Ethiopia?
No. Only third-party cover is compulsory. See third-party vs comprehensive.
Sources
- Vehicle Insurance Against Third Party Risks Proclamation No. 799/2013 — Ministry of Justice
- Proclamation No. 799/2013 — English text (Federal Negarit Gazette No. 53)
- Council of Ministers Regulation No. 554/2024 — premium tariff and amount of compensation
- Capital Ethiopia, 25 August 2024 — new vehicle insurance policy (press report)
- National Bank of Ethiopia — Motor Insurance Minimum Premium Rate Directive No. SIB/60/2023 (signed text, PDF)
- National Bank of Ethiopia — Financial Stability Report, March 2026
- National Bank of Ethiopia — Annual Report 2024/25