Following intense protests and civil unrest, Guatemalan President Bernardo Arévalo has rescinded a contentious decree that aimed to mandate car insurance nationwide, sparking debates on affordability and safety.
Guatemala Withdraws Controversial Auto Insurance Mandate Amid Protests
Guatemala Withdraws Controversial Auto Insurance Mandate Amid Protests
Public outcry leads to the reversal of a compulsory car insurance decree following widespread demonstrations.
In light of mass protests that erupted over two days, President Bernardo Arévalo of Guatemala announced the withdrawal of a controversial decree aimed at making car insurance compulsory for all vehicle owners. This legislation would have required drivers of cars, trucks, buses, and motorcycles to secure insurance coverage for damages inflicted on others in the event of an accident. The decree was introduced following a tragic bus accident last month, which resulted in over 50 fatalities — an event that underscored the urgent need for measures to protect victims of traffic incidents.
During a press conference on Wednesday, Arévalo emphasized his commitment to introducing necessary reforms for the country, despite inevitable challenges. He reiterated the importance of a new general transport law, noting that traffic accidents have become the leading cause of death in Guatemala. However, the timing of the decree faced backlash from the population, with a significant percentage living below the poverty line. Many citizens expressed concerns about the financial burden associated with mandatory insurance, as they felt ill-equipped to carry additional expenses.
The protests turned volatile as demonstrators clashed with police and obstructed key roads, causing disruptions in the capital and leading to temporary school and business closures. After engaging in discussions with protest representatives, Arévalo announced a collaborative effort to establish a technical committee. This committee will work towards a more strategic implementation of compulsory insurance, aiming for a plan within the next year. Protesters had specifically criticized the lack of transparency regarding the anticipated costs, which would come into effect on 1 May, prior to the decree’s retraction.
During a press conference on Wednesday, Arévalo emphasized his commitment to introducing necessary reforms for the country, despite inevitable challenges. He reiterated the importance of a new general transport law, noting that traffic accidents have become the leading cause of death in Guatemala. However, the timing of the decree faced backlash from the population, with a significant percentage living below the poverty line. Many citizens expressed concerns about the financial burden associated with mandatory insurance, as they felt ill-equipped to carry additional expenses.
The protests turned volatile as demonstrators clashed with police and obstructed key roads, causing disruptions in the capital and leading to temporary school and business closures. After engaging in discussions with protest representatives, Arévalo announced a collaborative effort to establish a technical committee. This committee will work towards a more strategic implementation of compulsory insurance, aiming for a plan within the next year. Protesters had specifically criticized the lack of transparency regarding the anticipated costs, which would come into effect on 1 May, prior to the decree’s retraction.
