Congolese risk managers warned not to buy cover abroad
Congolese risk and insurance managers have been warned not to buy their insurance cover overseas, after the Insurance Regulatory and Control Authority (ARCA) of the Democratic Republic of the Congo (DRC) issued a reminder of a “ban on direct insurance abroad” for anyone living on Congolese soil.
The ARCA explained this decision was taken by the government following resolutions made during a meeting of the Council of Ministers on the fight against evasion of insurance premiums.
The ruling is spelt out in the DRC’s Insurance Code of 2015, which strictly prohibits the acquisition of direct insurance abroad for a risk concerning a person, property or liability located on Congolese territory, or with a company not approved by the ARCA.
The insurance regulator has also stressed that the only operators authorised to carry out insurance operations in the DRC are those included on the official list that it publishes.
The Insurance Code also states that any insurance taken out abroad in violation of the law exposes offenders to a fine of 50% of the premiums issued outside. For a repeat offence, the fine is increased to 100% of the premiums.
