Paraguay Insurance Information

CIA link to demographic/economic data on Paraguay

General Paraguay Insurance Information

• Compulsory Insurance:
  
  1. Workers’ Compensation (part of Social Security Scheme);
  2. Public Transport Liability.
  3. Third Party Motor. (likely in force, but double check)
• Non-Admitted Insurance:
  Prohibited unless special permission is granted by the regulatory authorities.
• Policy Wordings & Rates / Tariffs Controlled:
  All.
• Policy Language:
  Spanish.
• Classes of Insurance Reserved to State Institutions:
  Workers’ Compensation.
• U.S. Dollar Insurance:
  Not available except for Marine.
• Currency: guarani (PYG)
• Currency Restrictions / Exchange Controls:
  Restrictions exist. Foreign exchange available from banks and exchange houses.
• Policy Period:
  Annual. Long term fire (property) policies are written.
• Cancellation Provisions:
  Written notice subject to the cancellation provisions of each policy.
• Premium Taxes, Stamp Duties & Other Fees Payable by Insured: 15%. The tax rates have been higher and lower.
• Insurance Companies:
  
• Brokers:
  Brokers operate on a limited basis.
• Brokerage Commissions:
  15% all lines. Commissions can be paid to foreign brokers not locally registered.
• Broker of Record Letters:
  Required for the transfer of business from one Insurer to another.
• Reinsurance:
  Reinsurance is available locally and there are no restriction of foreign cessions.
• Local Natural Hazards:
  Flood.
• Other Information:
  

Property Insurance

• Fire:
  Named Perils coverage and Extended Coverage perils available. Normal exclusions include: fire after and fires caused directly by earthquake, flood, atmospheric disturbances, industrial explosion, riot / civil commotion, storm, windstorm, volcanic eruption. There perils are available for an additional premium charge.
• All Risk:
  Very rare. Permission must be granted by the Superintendent of Banks. Construction related risks are usually accepted to be written on an All Risks basis.
• Coinsurance:
  100%.
• Blanket Insurance:
  Not available.
• Business Interruption:
  UK Loss of Profits form is customary.
• Replacement Value:
  Available.
• Fire Protection Credit:
  Available. Maximum premium credit approximately 50%.

Boiler & Machinery / Machinery Breakdown / Engineering

• Forms Available:
  UK and U.S. forms can be accepted.

General / Public Liability

• Forms Available:
  

  General / Public Liability including Tenant’s and Neighbor’s Liability.

• Occurrence Basis:
  Not available.
• Claims Made:
  Available.

Automobile / Motor

• Compulsory Limits BI & PD:
  Not compulsory. Minimum tariff limits for Third Party liability are in place. Higher limits are usually bought.
• Operators of Vehicles Insured:
  Insured and any individual driving with Insured’s permission.
• Passengers as Third Parties:
  Considered Third Parties.

Workers’ Compensation

Provided under the Social Security Scheme

• Employee Subject to Act or Law:
  All.
• Extra-Territorial Benefits:
  Not included.
• Medical Expenses:
  Included.
• Occupational Disease:
  Included.

Marine

• Forms Available:
  The Institute of London Underwriters forms apply. War Risk rates follow London scale. Crime / Fidelity / Surety
• Forms Available:
  Fidelity and Burglary are available. Accident, Health & Life
• Accident Forms Available:
  Group and Individual policies are available.
• Government Health & Hospital Program:
  Benefits provided under the Social Security Act.