This proclamation may be cited as the trade competition and consumers protection proclamation no. Non life insurance policies are used to cover property and liability risks. The company is set up with fully paid up capital of 30 million ethiopian birr. Nice is the first wholly privately owned insurance company, established in post 1994 ethiopia, to engage in general insurance business address. As in the case of banking, the proclamation empowers the national bank of ethiopia the supervisory authority to issue various directives necessary. Starting a business any person engaged in commercial activity in ethiopia is required to be registered and to have a business license. United, africa, nile, nyala, awash, national, and global. The provisions of a proclamation to provide for the licensing and supervision of insurance business no. Definitions in this proclamation, unless the context otherwise requires. The company has a legal entity registered with the licensing and supervisory body of the national bank of ethiopia in accordance with proclamation no861994 and license. Before the commencement of modern insurance service in the country, there have been traditional practices by which people help each other whenever they face either financial difficulties or needs assistance. Profile of insurance companies in ethiopia june 30, 2005 268 iv. May 2020 insurance companies in ethiopia latest ethiopian. Dec 03, 2017 2 any person who, having been called upon by the national bank under subarticle 4 of article 3 of this proclamation, fails or refuses to submit the documents described therein shall be punished with a rigorous imprisonment from seven to ten years and with a fine from birr 50,000 to birr 100,000.
The new comers privately owned insurance companies have penetrated the financial market and reduced the market share of ethiopian insurance corporation from 100 percent to 57 percent. Insurance policies marketed in the ethiopian insurance industry 269 iv. When we look into the insurance sector in ethiopia it is very small, young, and underdeveloped. Information required from applicants for license along with those provided for under the proclamation, the following information shall be. Short title this proclamation may by cited as insurance business amendment proclamation no. The national bank of ethiopia was established in 1963 by proclamation 206 of 1963 and began operation in. There was also no specific insurance legislation in ethiopia until the 1970s. This proclamation may be cited as banking business proclamation no. Tax invoice has the meaning assigned to it under article 22. Business proclamations and regulations ethiopian business news.
The greate ethiopian renaissance dam, which has been provided insurance cover by eic eic donated birr 5,000,000 to mekedonia, home for the elderly and mentally disabled people eic donated birr 1. With regard to the reinsurance business of the ethiopian insurance industry, despite the legal and economic significance of provisions to the reinsurance business, the insurance proclamation, proclamation no. Fikadu asfaw and associates law office is a fullfledged corporate and commercial law firm in addis ababa, ethiopia with highly professional attorneys providing legal advice and services to clients throughout the surrounding areas of ethiopia as well as all around the world. Revises its policies regularly and produces new policies based on the countrys current economic development and the demand. Yet geographical distribution of insurance branches was highly skewed to major towns and cities. The case of ethiopian insurance corporation aauetd addis. Regulations of commercial registration and business licensing in ethiopia details written by administrator published on 12 july 2008 category. About africa insurance company aic ethiopia background africa insurance company aic is a privately owned professional insurance company established in 1994 in accordance with the licensing and supervision of insurance business proclamation no. Ethiopian legal information portal find laws, cases, legal. During the event, it was reported that the financial year 201819 has been a great year, in which the company successfully achieved the targets planned.
According to hailu zeleke 2007, the first significant event that the ethiopian insurance market observation was the issuance of proclamation no. Type of insurance companies operating in ethiopia the practice of insurance service in its modern sense is a recent phenomenon which is said only to have been started in the early 1920s. History of insurance i n ethiopia modern insurance service in ethiopia started in 1905. Regulations of commercial registration and business licensing. Nearly 55 percent of insurance branches were located in addis ababa nbe, 202014. Opportunities and challenges for microinsurance in ethiopia.
Before this proclamation, insurance companies had to comply with the commercial, maritime and civil codes of 1960. Regulations of commercial registration and business. List of proclamations and regulations enacted in the. Issuing authority these directives are issued by the national bank of ethiopia pursuant to the authority vested in it by article 41 of the monetary and banking proclamation no. Insurance business directives national bank of ethiopia. Licensing and supervision of insurance business proclamation, proclamation no. An employee or official of the ethiopian postal services, acting on behalf of the ethiopian customs authority who administers this proclamation. The first re insurance company in ethiopia best re. Insurance in ethiopia historical development, present status. The corporation came into existence by taking over all the assets and liabilities of the thirteen nationalized private insurance companies, with birr 11 million usd 1. Under the ethiopian licensing and supervision of insurance business proclamation no. There has hardly ever been any work in insurance business in ethiopia that delved into the historical and factual aspects of the industry.
Mezgebe mihretu ethiopian development research institute. Basic categories of insurances under ethiopian law fikadu. Visionto be a world class insurer by the year, 2025missionwe provide our customers an efficient and reliable insurance service and engage in investment activities by deploying the right mix of expertise, the state of the art technology and cost effective strategy. Ethiopian insurance corporation addis ababa, ethiopia. Jul 12, 2008 regulations of commercial registration and business licensing in ethiopia details written by administrator published on 12 july 2008 category. Short title this proclamation may be cited as the insurance business proclamation no. The provisions in the legislation and the bold actions taken. Africa insurance company aic ethiopia insurancehorn. Licensing and supervision of insurance business ethiopian legal. Now, theefore, in accordance with article 55 i of the constitution of the federal democratic republic of ethiopia, it is hereby proclaimed as follows. Republic of ethiopia, it is hereby proclaimed as follows.
The share of private insurance companies in total branches stood at 81. Research report 22 the ethiopian insurance industry and. This proclamation may be cted as the commercial code. The requirements to carry on insurance business in ethiopia by abrham yohannes on september, 2011 4 comments taken from law of banking, negotiable instruments and insurance prepare by fasil alemayehu and merhatbeb teklemedhn sponsoredby justice justice and legal system research institute the requirements to carry on insurance. Ethiopian insurance corporation eic was established by proclamation no. This proclamation may be cited as the insurance business proclamation no. General features of lease agreements any lease agreement shall, among other things, contain. The less rewarding trend of insurance regulations in ethiopia. Understanding the historical background of the insurance. Definitions in this proclamation unless the context otherwise requires. Insurance laws the gateway to the ethiopian market. List of proclamations and regulations enacted in the period. Information required from applicants for license along with those provided for under the proclamation, the following information shall be contained in any application for a license to be an insurer. The proclamation sets out three levels of capital chapter two, section 4b.
Sib171998 licensing and supervision of insurance business manner of reporting financial information issuing authority these directives are issued by the national bank of ethiopia pursuant to the authority vested in it by article 41 of the monetary and banking proclamation no. Oromia insurance and nile insurance company 5 branches each. Ethiopian insurance law archives ethiopian legal brief. Penalties unless otherwise a higher penalty is imposed by the criminal code. The company has a legal entity registered with the licensing and supervisory body of the national bank of ethiopia in accordance with proclamation no861994 and license no. Basic categories of insurances under ethiopian law. If youre looking for a free download links of insurance practice and marketing. About ethiopian insurance corporation company profile historical background ethiopian insurance corporation eic was established in 1976 by proclamation no. Insurance in ethiopia historical development, present. Despite the above developments in the legal framework, there was no comprehensive and detailed insurance business legislation enacted by the ethiopian government until 1970. Thus, the business of insurance has a record of only 112 years in ethiopia.
Foreign insurance companies operating insurance business in ethiopia through agents. In january 1976, the insurance companies operating in ethiopia were nationalized and fused into an inclusive national insurance organization, the ethiopian insurance corp. Foreign insurance companies operating insurance business in ethiopia prior to the enactment of the 1970 insurance proclamation 267 iii. C is one of the pioneer private insurers established on april, 1995 with a capital of birr 12. Nyala insurance share company nisco was founded in july 1995 following the liberalization of the insurance business to the private sector in 1994 with the licensing and supervision of insurance business proclamation no. The insurance proclamation number 86 1994 opened the opportunity for establishing domestic private insurers and entitled the national bank of ethiopia to oversee the activities of both the state. Seven private insurance companies opened between 1994 and 1997. Historical development, present status and future challenges explores the historical trajectories, thoroughly examines its emergence and the tortuous path it has gone through ever since the inception of insurance. During the defunct regime, the state owned ethiopian insurance corporation has been in a position to control the insurance business by monopoly. These directives are issued by the national bank of ethiopia pursuant to the authority vested in it by article 41 of the. Ethiopian insurance corporation eic was established in 1976 by proclamation no.
1044 716 975 39 1301 292 1372 277 985 1363 1383 602 915 1150 1061 1254 466 640 461 1121 113 600 1420 130 1345 488 487 669 595 819 1327 1354 844 566 418 924 368 289 1353