Types of insurance in Ethiopia

The map at a glance

The compulsory covers

Third-party vehicle insurance

No vehicle may be driven on a road without it (Art. 3 of Proclamation 799/2013). Ethiopia's compulsory cover is wider than its neighbours': it pays for death, bodily injury, damage to property and emergency medical treatment caused to others (Art. 4(2)). The sticker must be on the windscreen, and driving uninsured is punishable by a fine of Birr 3,000–5,000 or one to two years' imprisonment (Art. 30). How to verify a cover: insurance check in Ethiopia.

Social health insurance

Proclamation 690/2010 makes employees and pensioners members of a national health scheme, with equal monthly contributions from employer and employee (Arts. 5 and 9). Roll-out started in January 2026 with public health-sector staff. Details: social health insurance in Ethiopia.

Employer liability for work injuries

Under the Labour Proclamation No. 1156/2019, an employer is liable for employment injuries irrespective of fault (Art. 96), up to five times annual wages for death or permanent total disablement of a worker outside the pension scheme (Arts. 109–110). The law lets the Ministry decide which undertakings must insure that liability (Art. 171(1)(i)); a workmen's compensation policy lets a business carry it. See employment injury insurance.

The COMESA yellow card

To drive into Kenya, Djibouti, Sudan and other member countries, a vehicle needs a COMESA yellow card, which covers third parties in the countries visited. A foreign vehicle entering Ethiopia needs a local certificate or a yellow card (Proclamation 799/2013, Art. 26).

General (non-life) insurance

General insurance protects property and liabilities, usually for a year at a time. It is by far the larger branch: ETB 38.0 billion of the ETB 41.1 billion of premiums written in 2024/25, and 49.6% of it is motor (NBE Financial Stability Report). All 18 licensed insurers write general business. The covers most people and businesses meet:

• Motor — compulsory third-party and optional comprehensive (own damage, fire, theft).
• Fire and allied perils — buildings, stock and contents.
• Engineering — machinery, construction sites and equipment.
• Marine and goods in transit — imports, exports and goods on the road.
• Liability — public liability, product liability, professional indemnity.
• Workmen's compensation / employer's liability — the Labour Proclamation benefits.
• Medical — individual, family and group health cover.
• Travel — medical and trip cover abroad, including visa insurance.
• Money, burglary and fidelity — cash, break-ins and staff dishonesty.

In general insurance, net claims incurred were ETB 10.5 billion, or 51.0% of net earned premium, in 2024/25, according to the NBE — a sector average, not a figure for any one insurer.

Long-term (life) insurance and takaful

Long-term insurance pays on death, at the end of a savings term, or when a borrower dies. It is small in Ethiopia: ETB 2.6 billion of life premium and ETB 0.5 billion of takaful in 2024/25, against ETB 38.0 billion for general insurance (NBE). 14 of the 18 insurers are composite companies writing both life and general business; 4 write general business only.

More: life insurance in Ethiopia.

Health cover: three systems side by side

Health is the area where public and private insurance meet. CBHI covered 63 million people in 13.67 million households across 1,195 districts in 2024/25 (EHIS); SHI covers salaried employees and pensioners as it rolls out; and private medical insurance from the licensed insurers adds treatment in private hospitals and higher limits. The full picture: health insurance in Ethiopia.

Who sells insurance, and how to buy safely

Only companies licensed by the National Bank of Ethiopia may sell insurance: the 18 insurers on the NBE list, and their 3,077 agents and 54 brokers (2024/25). Before you pay:

1. Check the insurer on the list of licensed insurers and ask any agent or broker for their NBE licence.
2. Ask for the policy wording, not only the schedule: exclusions, excess, claim procedure.
3. Get the premium in writing — for motor third-party it follows a national tariff.
4. Keep the policy, the receipt and, for a vehicle, the certificate and sticker together.
5. If a claim goes wrong, complain to the insurer in writing; it has 10 business days to answer before you complain to the NBE (FCP/01/2020).

To compare insurers on the regulator's figures, see the largest insurers in Ethiopia and compare two insurers. Tulinde does not rank or rate insurers.

Sources

1. Proclamation No. 799/2013 — English text (Federal Negarit Gazette No. 53)
2. Social Health Insurance Proclamation No. 690/2010, Federal Negarit Gazeta No. 50, 19 August 2010 (WHO legislation database copy)
3. Labour Proclamation No. 1156/2019 (Federal Negarit Gazette No. 89)
4. COMESA Yellow Card — overview
5. National Bank of Ethiopia — Financial Stability Report, March 2026
6. Ethiopian Health Insurance Service — community-based health insurance results (5 July 2025)
7. National Bank of Ethiopia — licensed insurers
8. National Bank of Ethiopia — Financial Consumer Protection Directive FCP/01/2020