Guatemala Insurance Information

CIA link to demographic/economic data on Guatemala

General Guatemala Insurance Information

• Compulsory Insurance:
  
  1. Workers’ Compensation (Social Security Scheme).
• Non-Admitted Insurance:
  Prohibited unless approved by the Superintendency.
• Policy Wordings & Rates / Tariffs Controlled:
  The Superintendency controls market rates and forms for fire, automobile, Crime, personal accident and life.
• Policy Language:
  Spanish.
• Types of Insurance Restricted to Government Institutions:
  Workers’ Compensation.
• Policy Currency:
  Guatemalan Quetzal (Q). U.S. $ insurance is prohibited.
• Currency Restrictions / Exchange Controls:
  The Quetzal is exchangeable. Foreign currency exchange rates are controlled by the Bank of Guatemala.
• Policy Period:
  Annual although longer periods can be written (3 and 5 years).
• Cancellation Provisions:
  Various and written notice must be given.
• Premium Tax, etc. paid by Insured:
  3% - most policies;
  4% - other expenses;
  3% - policy fee (up to a maximum of Q30);
  2% - on fire policies for Fire Brigade Charges.
  
• Insurance Companies:
  Foreign insurers are forbidden to issue policies.
• Brokers:
  Agents and Brokers must be registered with the Superintendencia de Bancos de Guatemala.
• Brokerage Commissions:
  
• Broker of Record Letters:
  A letter of appointment will do.
• Reinsurance:
  No restrictions known..
• Local Natural Hazards:
  Earthquake
• Other Information:
  U.S. Dollar policy issuance is prohibited. With the exception of the tariff-rated lines indicated above, all other coverages are freely negotiated.
  
  The compulsory Social Security Scheme provides: pension, disability pension, medical and hospital benefits, maternity benefits, Workers’ Compensationand funeral expenses.

Property Insurance

• Fire:
  Standard fire perils include - fire, lightning. Explosion, riot / civil commotion, malicious damage are available as extended coverage. Earthquake, flood, aircraft, vehicle impact and burglary are available in the market and must endorsed individually for an additional premium charge.
• All Risk:
  Available for Builders Risk, Contractors Equipment and Machinery Installation.
• Coinsurance:
  80% minimum.
• Blanket Insurance:
  Not available.
• Business Interruption:
  UK Loss of Profits or U.S. Gross Earnings available.
• Replacement Cost:
  Available.
• Discount for fire protection equipment / systems: None known.

Boiler & Machinery / Machinery Breakdown / Engineering

• Wordings:
  Available under either UK or U.S.-style forms. Fire policies can be endorsed to cover Boiler explosion.

General / Public Liability

• Available Wordings:
  General / Public Liability is available. Product Liability coverage available.
• Comments:
  Policy can be written on an occurrence basis. Napoleonic Code applies.

Automobile / Motor

• Compulsory Limits:
  Coverage is not compulsory.
• Comments:
  Coverage applies to the Insured and any licensed individual driving with the Insured’s permission. Passengers are not considered Third Parties but coverage can be endorsed.

Workers’ Compensation

• Comments:
  All employees are covered under the Guatemalan Social Security Scheme. Medical Expenses and Occupational Disease protection is included. Workers abroad are not covered by the Scheme. Employees have the option to sue.

Marine

• Available Wordings:
  London and American. War and SRCC based on London rates.

Crime

• Available Coverages:
  Fidelity, Money & Securities.