PIF - Vehicle insurance & Transportation insurance

Motor Vehicle Insurance

Motor vehicle insurance is among the most common types of insurance worldwide. In Palestine, the main types of vehicle insurance are:

1. Compulsory Motor Insurance (Liability Insurance)

This type of insurance is mandated by law for all vehicles operating on public roads. It covers bodily injuries resulting from road accidents, regardless of the driver’s fault. The insurance company is responsible for compensating:

• Injuries to passengers in the insured vehicle.

• Injuries to pedestrians caused by the insured vehicle.

• Medical treatment costs until full recovery or medical stabilization.

• Financial obligations incurred due to the accident.

• Loss of income (temporary or permanent).

• Psychological harm due to injury.

• Any other liabilities as stated by law.

2. Third-Party Liability Insurance

This covers material damages caused by the insured vehicle to a third party. It applies when the policyholder or the vehicle driver causes property damage to others.

3. Comprehensive Insurance

This covers physical damage to the insured vehicle caused by traffic accidents. It complements compulsory insurance and third-party liability insurance.

Vehicle Insurance Premium Rates

Compulsory and Third-Party Insurance Premiums

Premiums are calculated based on vehicle type and usage:

• Private Vehicles: Based on engine size (power), divided into categories.

• Commercial Vehicles: Based on type of license and payload.

• Public Taxis: Based on passenger capacity and number of designated drivers.

• Private and Public Buses: Based on number of passengers.

• Rental Cars: Based on engine power or payload, with additional charges.

• Heavy Equipment (tractors, bulldozers, etc.): Special premium rates.

Comprehensive Insurance Premiums

Premiums are based on a percentage of the insured value (vehicle value) according to a risk-based rate table.

Insurance Certificate / Policy Schedule

The insurance certificate typically includes:

• Name, address, and ID number of the insured

• Vehicle details

• Start and end date of coverage

• Agreed premium

• Type of coverage (Compulsory / Third Party / Comprehensive)

• Coverage amounts, liability limits, and deductibles

• Bank stamp indicating the effective start time of the policy

• General conditions, limitations, and exclusions

General Guidelines Before Choosing an Insurance Company

Before selecting a company to insure your vehicle, make sure it:

• Holds a valid license issued by the Insurance Supervision Department.

• Has a solid financial position and ability to meet its obligations.

• Has sufficient reinsurance coverage with reputable global reinsurers.

• Has branches throughout the country with authority to handle claims, regardless of where the accident occurs.

Transport Insurance

Land Transport Insurance:

Covers the transportation of goods by land, including risks such as fire, overturning, and collision of the transport vehicle.

Marine and Air Transport Insurance:

Covers shipments transported by sea or air from all parts of the world via Israeli ports and airports to various destinations in Palestine.

Marine Insurance is one of the oldest forms of insurance and includes:

• Marine Hull Insurance:

  • Coverage for the hull (body) of the vessel.

  • Liabilities arising from the vessel’s operations.

• Marine Cargo Insurance:

  • Covers the transport of goods by sea, land, and air.

  • Includes inland transit and international shipments.