Panama (Republic of) Insurance Information

CIA link to demographic/economic data on Panama

General Panama Insurance Information

• Compulsory Insurance:
  
  1. Third Party Automobile Liability (double check to see if indeed this has become compulsory as there has been a lot of legal maneuvering to make it compulsory);
  2. Workers’ Compensation (part of Social Security Scheme).
• Non-Admitted Insurance:
  Prohibited unless approved by the Superintendency of Insurance. Severe penalties exist for placing coverage with non-licensed Insurers.
• Policy Wordings & Rates / Tariffs Controlled:
  All fire (property) and automobile wordings and rates are approved by the Superintendency of Insurance.
• Policy Language:
  Spanish.
• Types of Insurance Restricted to Government Institutions:
  Workers’ Compensation.
• Policy Currency:
  balboa (PAB); US dollar (USD). U. S. $ insurance is available.
• Currency Restrictions / Exchange Controls:
  No restrictions.
• Policy Period:
  1, 3, & 5 year policies are common. Long Term Agreements (LTAs) are also available.
• Cancellation Provisions:
  Written notice usually required. Check policy cancellation provisions for number of days.
• Premium Tax, etc. paid by Insured:
  2% premium tax on all lines; 5% fire brigade charge on all fire (property) policies; 5% policy fee is levied on all non-fire lines; 2% Group and Individual Life policies.
• Insurance Companies:
  All National Insurers must have a minimum 50% local shareholding.
• Brokers:
  Agents and Brokers operate in the market.
• Brokerage Commissions:
  
• Broker of Record Letters:
  Required.
• Reinsurance:
  Only 50% of the fire (property) premium may be ceded abroad. Exceptions are made an a case by case basis. In the event either or both market capacity and / or coverage is not available, permission will usually be granted to purchase foreign cover / limits.
• Local Natural Hazards:
  Hurricane.
• Other Information:
  

Property Insurance

• Fire:
  Named Perils available. Usual exclusions include fires caused by earthquake, flood, volcanic eruption and atmospheric disturbances. Extended Coverage perils available for an additional premium charge.
• All Risk:
  Available for Builders Risk, Contractors Equipment, and Machinery Installation – as things have changed somewhat, all risk insurance may also be available.
• Coinsurance:
  80% minimum.
• Blanket Insurance:
  Not available.
• Business Interruption:
  UK Loss of Profits and U.S. Gross Earnings forms are available.
• Replacement Cost:
  Available.
• Discount for fire protection equipment / systems: If approved by regulators.

Boiler & Machinery / Machinery Breakdown / Engineering

• Wordings:
  U.S. There are no inspection requirements.

General / Public Liability

• Available Wordings:
  Comprehensive General / Public Liability including Product Liability, Contractual Liability, etc.
• Comments:
  Coverage is written on an occurrence basis.

Automobile / Motor

• Compulsory Limits:
  Minimum limits prevail by law.
• Comments:
  Coverage applies to the Insured and any licensed individual driving with the Insured’s permission. Passengers are not considered to be Third Parties.

Workers’ Compensation

• Comments:
  All, except agricultural, self-employed and domestic employees are protected by the Social Security Scheme. Extra-Territorial benefits are not included. Medical Expenses and Occupational Disease coverage is provided. Employees have the option to sue.

Marine

• Available Wordings:
  U.S., UK.

Crime

• Available Coverages:
  U.S. forms widely used.