Dominican Republic Insurance Information
CIA link to demographic/economic data on the Dominican Republic
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General Dominican Republic Information
- Compulsory Insurance:
- Workers’ Compensation
- Third Party Automobile Liability.
- Non-Admitted Insurance:
Prohibited unless coverage is not available locally or capacity requirements exceed market capacity. The financial penalty for not complying with legislation is severe.
- Policy Wordings & Rates / Tariffs Controlled:
The Superintendency controls market rates and forms though flexibility can be achieved through direct negotiation with Insurers and Reinsurers. Workers’ Compensation cannot be written by private Insurers - reserved for the Social Security Scheme.
- Policy Language:
Spanish.
- Types of Insurance Restricted to Government Institutions:
Workers’ Compensation.
- Policy Currency:
Dominican Peso (RD$). All policies must be written in RD$. U.S.$ is not available.
- Currency Restrictions / Exchange Controls:
Restrictions exist. All foreign exchange activities must go through the Central Bank.
- Policy Period:
Annual though for larger risks multi-year policies are available as long as annual reviews are conducted and values and premiums so adjusted.
- Cancellation Provisions:
By the Insured: Immediate.
By the Insurer: 30 days written notice.
- Premium Tax, etc. paid by Insured:
10% for most commercial lines plus a license tax is tacked on.
- Insurance Companies:
All Insurers must be licensed by the Superintendency of Insurance.
- Brokers:
All agents and brokers must be licensed by the Superintendency. The market is principally a broker market though companies do employ exclusive agents.
- Brokerage Commissions:
- Broker of Record Letters:
Required.
- Reinsurance:
Change is in the wind. Historical practice required 30% local reinsurance for both treaty and facultative business. A reinsurance ceded abroad tax applies in the amount of approximately 3.6%.
- Local Natural Hazards:
Earthquake and Hurricane.
- Other Information:
Careful attention and understanding is required for local Property Damage and Business Interruption Policies’ Earthquake deductible. A minimum deductible of 2% of the total sum insured and 20% participation of the loss by the Insured. It may be, yet unconfirmed, that hurricane and flood are subject to the same deductible / participation setup. Please e-mail an update if you can confirm.
Property Insurance
- Fire:
Standard fire perils are FLEXA and additional coverages can be endorsed.
- All Risk:
Available.
- Coinsurance:
minimum 80%.
- Blanket Insurance:
Available.
- Business Interruption:
UK Loss of Profits and U.S. Gross Earnings forms.
- Replacement Cost:
Available.
- Discount for fire protection equipment / systems: Available - negotiable.
Boiler & Machinery / Machinery Breakdown / Engineering
- Wordings:
UK and U.S. forms available.
General / Public Liability
- Available Wordings:
Various and can be broadened to suit.
- Comments:
Product Liability available. Policies can be written on an occurrence basis.
Automobile / Motor
- Compulsory Limits:
Bodily Injury: RD$3,000 / person; RD$6,000 / accident; Property Damage: RD$2,000.
- Comments:
Coverage applies to the Insured and any licensed individual driving with the Insured’s permission. Passengers are deemed to be Third Parties. Higher limits are strongly recommended.
Workers’ Compensation
- Comments:
All employees (including foreign nationals) are protected under the Social Security Scheme. Extra-Territorial Benefits are not available. Medical Expenses and Occupational Disease benefits are included under the Scheme. Employees have the option to sue.
Marine
- Available Wordings:
London Underwriters’, local and U.S. forms generally available. Note: All imports must be insured by a Dominican Insurance Company (and retrocessions to foreign markets are not restricted).
Crime
- Available Coverages:
Usual standard fidelity, burglary / robbery, money policies are available in the local market.
Updates & Additional Information: