The House of Representatives approves the draft law for compensating victims of traffic accidents
Follow-up
On Tuesday morning, the House of Representatives, in a first reading, approved draft law 70.24 concerning the amendment of the royal decree No. 1.84.177 related to compensating those injured in traffic accidents caused by motorized vehicles.
Justice Minister Abdellatif Ouahbi emphasized during the legislative session that insurance companies represent a “national wealth” given the capital they invest and the compensations they pay annually, which exceed 9 billion dirhams. He stressed the importance of maintaining a balance that considers both the citizen’s interest and that of the sector.
In response to the criticism directed at insurance companies, the minister stated that “demonizing these companies” cannot replace regulation of the sector or the attraction of foreign firms. He added that the government’s role is to find a balance between revenues, service costs, and profits which should not exceed 10 percent.
Ouahbi clarified that the new draft law aims to address stagnation lasting over four decades, noting that the original text from 1984 had not been reviewed despite social and technological changes. He pointed out that in 2024, Morocco recorded a total of 655,360 traffic accidents, including 143,093 that resulted in bodily injuries and 4,024 fatalities, with total compensation payments reaching 7.9 billion dirhams, 26 percent of which were settled through amicable solutions.
The minister added that the revisions in the new draft law raise compensation levels by up to 150 percent and incorporate new developments related to the emergence of new types of transportation not considered when the law was first enacted, such as trams, autonomous vehicles, and drones that may transport goods in the future.
Ouahbi highlighted that judicial interpretations have addressed cases not covered by the old law, necessitating the regulation of new provisions to avoid varying interpretations, especially regarding the calculation of professional earnings.
The draft includes new measures concerning compensations, notably the recognition of any increase in the victim’s professional earnings during the year preceding the accident, alongside raising the minimum wage used in calculating compensations from 9,200 dirhams to 14,000 dirhams, with mandatory reviews every three years in line with growth rates.
Additionally, the new text gives victims the right to request a review of compensations in cases where damage worsens, which insurance companies previously refused under the old provisions.
