Bolivia lawmaker says SOAT payouts too small

Allan Brown reports for BNAmericas:

Bolivia lawmaker says SOAT payouts too small

A Bolivian lawmaker is due this week to present a bill that would increase the amount paid out in claims under mandatory traffic accident policies (

Bolivia to ‘nationalize’ the SOAT insurance business: Bolivia’s state-owned life insurer UNIVida will take over the complete mandatory traffic accident coverage (SOAT) business from private insurance companies. UNIVida was launched last week to provide affordable life and personal…

” data-toggle=”tooltip”>SOAT).

Víctor Borda, who is also president of a lower house legal committee, said motorists would not be burdened with higher costs.

Current payouts are too small and the profits made by 

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” data-toggle=”tooltip”>insurers, based on a finance ministry study, are big enough to absorb costs associated with an increase, Borda said in a lower house statement.

“What I have proposed is verifying the costs and profits of companies that sell SOAT policies because the current amount to cover a road traffic accident is small in my opinion, about US$3,500,” Borda said. “We know very well that a person, in the worst case, undergoes one, two or three surgical procedures, faces medical bills, and that US$3,500 is not enough.”

https://www.bnamericas.com/en/news/insurance/bolivia-lawmaker-says-soat-payouts-too-small

Bolivian Thoughts opinion: I’ve seen drivers that cause an accident and also get upset and do not want to be held responsible on any compensation. I have seen drivers who look after getting into collisions so they can get paid … system is nor perfect but this intention to offer more coverage on this insurance, at no additional cost, sounds perfect for all drivers in Bolivia!