Insurance in Libya

Insurance in Libya is a fragmented system with statutory, commercial and cooperative elements. Takaful provides insurance on cooperative principles. Licensed insurers, reinsurers, insurance funds, cooperative associations, brokers, agents, adjusters, actuaries and medical-expense managers serve different risks. The Insurance Supervision Authority, known as LISA and operating under the Ministry of Economy and Trade, registers and supervises market participants, monitors the market, publishes information and receives complaints. The Libyan Insurance Union supports unified electronic issuance and other sector functions. Insurance policies are commonly called وثيقة, while a claim may be described as مطالبة or تعويض. Statutory social insurance is administered by the Social Security Fund, or SSF, through local and district offices. Covered employers, public employees, self-employed workers, stakeholders and contract workers generally require registration under the applicable system. Employers register the entity and staff and make monthly deductions and deposits. Benefits can include old-age, disability and survivors' pensions, sickness, maternity, work injury, occupational disease and medical benefits. Registration documents may include the original business licence and a copy, two identity photographs, a birth certificate, a health certificate and an identity-card or passport copy. Foreign workers may need consent or a bilateral agreement. Public SSF guidance lists possible exclusions or limits for enterprises with fewer than five employees, agricultural and pastoral work, seasonal, casual or temporary work, diplomats, consular staff, military experts and foreign ship or aircraft crew; the responsible SSF branch must confirm the current treatment of a specific case. A delay in registration does not by itself remove a worker's rights. SSF insurance is compulsory where the statutory rules cover the person or activity. A current SSF page confirms monthly contributions, but it does not publish a complete current percentage schedule. An ISSA profile based on policies reported as of 2022 lists employee contributions of 5.125%, employer contributions of 14.35% for general employers and 15.375% for foreign employers, self-employed contributions of 20.425%, and government rates of 1.025% for an insured person and 1.075% for a self-employed person. These figures carry a currency risk and require confirmation from the relevant SSF office before payroll or registration decisions. Private insurance normally begins by checking the LISA register and choosing a licensed insurer, branch, broker or agent. The provider collects identity, property, vehicle, business or other risk information, then issues a quotation and policy wording. The policy should be checked for the insured risk, limits, exclusions, duration, territory, beneficiary and premium. Available products include life and savings, permanent disability, personal accident, medical expenses, travel, fire, burglary, natural hazards, engineering, energy, oil, marine, land and air transport, hull, aviation, motor, medical liability, third-party liability and credit-default cover for lenders. Premiums for private property, life and medical cover are normally quote-based and depend on the risk and provider. No uniform public consumer application pathway, general claim deadline or general cooling-off rule has been identified, so the contract and provider procedures control those points. Compulsory motor insurance has particularly broad practical relevance. Residents of Libya, including citizens and foreign residents, require compulsory vehicle cover. Foreign vehicles entering Libya generally need cover bought at entry unless reciprocal Libyan cover or an Orange Card applies. The compulsory cover protects third parties and passengers against death and bodily injury. Law No. 400 of 2026, issued on 16 July 2026, sets compensation rules and a cap of LYD 120,000 per death or injury case. Law No. 28 of 1971 and its amendments form the earlier compulsory motor liability framework. The unified electronic issuance system was launched on 29 April 2026; reports recorded more than 15 insurers, over 60 areas and more than 38,262 policies in May 2026, and more than 193,000 active policies in July 2026. The system supports QR validation, saved policies, expiry alerts, a premium calculator and reports or complaints tracking. The 2026 annual final prices for compulsory motor cover include LYD 44 for a private vehicle up to 16 horsepower, LYD 50 for more than 16 and up to 30 horsepower, and LYD 70 above 30 horsepower, plus LYD 5 per passenger. A private trailer costs LYD 30. City taxis start at LYD 64 for up to five passengers, with LYD 10 for each additional passenger; intercity taxis start at LYD 44, with LYD 15 for each additional passenger. Buses start at LYD 84 for up to 14 passengers, with LYD 8 for each additional passenger. Goods vehicles and tractors start at LYD 50 for up to two tonnes, with LYD 8 per additional tonne and LYD 15 per passenger. Agricultural tractors cost LYD 16, industrial, lifting and road machinery LYD 34, motorcycles LYD 18 without an attachment or LYD 24 with one, ambulances LYD 50, hearses LYD 24, driving-school vehicles LYD 58 and commercially licensed vehicles LYD 100. The issuance fee is LYD 10 and the LISA service fee is LYD 5, included in the premium. The Orange Card is an Arab unified motor-liability card for cross-border travel. Its minimum period is seven days. Private vehicles, trailers, motorcycles, ambulances, hearses and driving-school vehicles cost LYD 7 per day; public passenger vehicles, buses, goods vehicles, tractors and commercial vehicles cost LYD 8 per day. Visiting more than one country adds LYD 3 per day, and issuance costs LYD 20. An accident is handled under the law of the visited country through its unified office, and the vehicle details must be supplied. A policyholder should notify the insurer or its branch according to the policy and preserve evidence after a loss. Required forms and supporting documents vary by provider. LISA rules require a claims register containing the submission date, policyholder, address, policy number, reserve, payment date or refusal date and the reason for refusal. A dispute may proceed through settlement with the insurer or through court proceedings, with escalation to LISA where appropriate. Orange Card accidents should also be reported to the unified office in the country visited. The digital motor system provides report, complaint and status-reference functions. Policy registers record duration, amount and amendments. Insurers must report material policy or data changes to LISA, and changes to life, savings and compulsory-tariff products, terms or forms require the applicable approval. Renewal, endorsement, cancellation, termination and changes to a beneficiary, vehicle or insured property depend on the policy. A motor-policy change should be checked again through the QR or electronic status system. Policyholders are entitled to policy data and a copy of the policy. They must give truthful information, pay premiums, register and renew when required, notify losses promptly, preserve evidence and comply with territorial and exclusion clauses. Libya has one national legal framework rather than separate insurance laws for each municipality. Access usually takes place through insurer branches, agents or brokers, with documented provider contacts in Tripoli, Benghazi, Misrata, Al-Zawiya and Wazin. Availability, policy wording, claims handling speed and service networks vary by insurer and branch. Direct insurance generally requires a licensed provider, while external cover requires Ministry approval. Unregistered brokers, agents, adjusters and actuaries are prohibited. Company registration decisions by LISA have a stated target of one month after complete requirements, but that administrative target does not establish a general deadline for private claims or policy issuance.