Insurance in Cabo Verde

The Portuguese terms insurance (seguro), insurer (seguradora), policyholder (tomador do seguro), insured person (segurado), policy (apólice), premium (prémio), and insured event (sinistro) are customary in insurance transactions in Cabo Verde. The Bank of Cabo Verde (Banco de Cabo Verde, BCV) supervises insurers, reinsurers, insurance intermediaries, and pension funds through its Insurance, Pension Fund and Automobile Guarantee Fund Supervision Office (Gabinete de Supervisão de Seguros, Fundos de Pensões e de Gestão do Fundo de Garantia Automóvel). The Consumer Support Office (Gabinete de Apoio ao Consumidor) receives consumer complaints. Garantia and IMPAR are established insurers; Aliança Seguros S.A. received BCV authorization in 2024 for life and non-life insurance. Access to IMPAR is documented for all islands, while actual accessibility may vary by island and provider. Insurance law is based, among other provisions, on Decreto-Legislativo 3/2010 on access to and pursuit of insurance and reinsurance business, and Decreto-Lei 35/2010 on general insurance contract law. Vehicle owners or operators and shipowners need liability insurance. Employers and, depending on the applicable scope, self-employed persons must insure workplace accidents and occupational diseases. The BCV-approved uniform policies and tariffs apply to these compulsory insurance types. During traffic checks, proof of valid coverage may be required; driving without insurance may result in a fine, seizure of the vehicle, and personal civil liability. Private insurance may also cover household and fire damage, health, travel, life, personal accidents, liability, electronic devices, education, and transported goods. The premium depends on the risk, sum insured, deductible, term, product, and tariff. There is no general state contribution table for private insurance. The policy specifies which losses, exclusions, evidence, and deadlines apply. The INPS organizes compulsory public social security for employees, employers, self-employed persons, domestic workers, and companies in the REMPE system (REMPE). Benefits include medical and inpatient care, dental treatment, physiotherapy, sickness benefits, family allowances, and disability, old-age, and survivors' pensions. Employees pay a total of 24.5 percent, consisting of a 16 percent employer share and an 8.5 percent employee share. Self-employed persons pay 19.5 percent; domestic workers pay 23 percent, of which 15 percent is paid by the employer and 8 percent by the employed person; the contribution for REMPE is 8 percent. Payment is due by the 15th of the following month. Late payments may trigger interest and fines, and four consecutive months without contribution payments constitute serious arrears. Employers must register and report the start of an employee's employment no later than 15 days after it begins. After an insured event, the insured person informs the provider through its designated channel and submits the policy, accident or loss details, and, depending on the case, medical, police, or other evidence. The insured person must provide truthful risk information, pay premiums, minimize losses as far as possible, and cooperate with the assessment. The insurer must provide the contractually promised coverage and process the loss. The Automobile Guarantee Fund (Fundo de Garantia Automóvel, FGA) is an independent fund at the BCV. It may provide compensation for personal injury from traffic accidents when the vehicle was uninsured, the liable person is unknown, the policy was invalid, or the insurer is insolvent; property damage is additionally covered when a known liable driver had no valid coverage or the insurer was insolvent. The FGA may subsequently seek reimbursement and interest from the responsible party and is financed by 2 percent of premiums from compulsory motor third-party liability insurance. Complaints first go to the insurer and, if the dispute remains unresolved, to the BCV consumer support office; depending on the case, mediation or court proceedings may follow. In 2024, the BCV registered 26 insurance complaints, 20 against Garantia and 6 against IMPAR. Email procedures used by the insurers were used for complaints; an integrated platform was not documented. Insurance-contract claims generally become time-barred five years after they become known, unless a special rule applies to compulsory insurance. For motor policies, the standard conditions provide for annual renewal. Notice of cancellation generally must be given by registered letter at least 30 days before the anniversary date and takes effect at 24:00 on the stated date. When a vehicle is sold, the policy does not automatically transfer to the buyer. Whether a premium is refunded depends on the reason for termination. Different deadlines for loss notifications and payments apply depending on the insurance class and policy.