Insurance in Madagascar

Madagascar's insurance market is governed mainly by Loi n°2020-005 sur les Assurances, promulgated on 1 September 2020. Its 440 articles replaced Loi n°99-013 and regulate life and non-life insurance, reinsurance, insurance companies, mutual insurance companies, distribution channels, microinsurance, digital products and index-based insurance. Non-life cover includes property damage, liability, health, accident, transport, fire and agricultural risks. A private premium is commonly called a prime, social insurance payments are cotisations, cover is a garantie, an insured event is a sinistre and proof of cover is an attestation. The Commission de Supervision Bancaire et Financière, or CSBF, supervises the sector within the Bank of Madagascar, BFM. The Ministry of Economy and Finance transferred the relevant supervisory function to the CSBF in 2021. The CSBF authorizes and supervises insurers, reinsurers and mutual insurers and checks capital, solvency, liquidity, technical reserves, assets and governance. Insurance companies are commonly called entreprises d'assurance, or EA. Insurance and reinsurance intermediaries are commonly abbreviated IAR. An EA must be established in Madagascar, and an IAR requires prior approval. The CSBF or BFM register is the relevant source for checking a provider's current authorization. Formal access remains limited and uneven across regions. People generally obtain private cover from an authorized EA, agent, broker, mutual insurer or, in some cases, a digital channel. Risks located in Madagascar, people resident there and liability connected with Madagascar generally require cover from an EA authorized in Madagascar; a foreign policy is not automatically accepted as an equivalent. Tontines, informal solidarity or health groups and some associations or NGOs may help members manage costs, but they are not the same as regulated insurance and do not provide the same legal protection or supervision. CNaPS is a public institution jointly supervised by the Ministry of Labour and the Ministry of Economy and Finance. Every employee covered by the Labour Code must be registered through the employer. The employer submits hiring notices and monthly declarations and payments through E-CNaPS. CNaPS provides family benefits, occupational accident and disease protection and old-age benefits. Family support can include a family allowance for children under 21, prenatal and maternity allowances, half-pay maternity benefits and reimbursement of childbirth costs. Payment may use a bank account or mobile money, while missing documents or contribution arrears can suspend payment. A CNaPS old-age pension generally requires reaching 60, ending employment, at least 15 years of affiliation and at least 28 contribution quarters during the previous 10 years. A proportional pension can apply from 60 contribution quarters. The worker's contribution history is recorded in the Compte Individuel des Travailleurs. The official contribution form lists 13% for the employer and 1% for the employee, with a contribution base capped at eight times the applicable minimum wage. The CNaPS figures published for 2026 list a general minimum wage of 300,000 ariary with a 2,400,000 ariary cap, and an agricultural minimum wage of 304,300 ariary with a 2,434,400 ariary cap. Public-sector pensions follow separate systems: CRCM covers certain civil servants and military personnel, while CPR covers non-cadre public employees, contract workers and auxiliaries. These schemes are not CNaPS pensions. Private insurance can cover life, death, supplementary retirement, capitalization, vehicles, liability, fire and other property risks, transport, accident, health and agriculture. Third-party motor liability insurance, known locally as RC véhicules terrestres à moteur, is compulsory across Madagascar for vehicles outside the State fleet, including cars, commercial vehicles, trucks, motorcycles, scooters, tractors, construction machinery, caravans and trailers. It covers bodily and property damage caused by an accident, fire or explosion. The policyholder must carry physical or electronic proof for traffic checks. Insurers set tariffs using actuarial methods subject to CSBF minimum criteria. A victim of a compulsory motor-liability accident can claim directly against the EA. Certain exclusions, defences and deductibles cannot be used against an injured third party; the EA pays first and may later seek reimbursement from the responsible party. For bodily injury, the EA must make an indemnity offer no later than eight months after receiving the police report. The first contact should identify the claims handler, provide a copy of the report and mention access to advice. For other claims, the EA must state missing documents within five days. Payment follows the contract and is due no later than one month after complete proof has been received. Insurance contracts must be written, either on paper or electronically, and the EA must provide the signed policy. The customer must disclose material risks, report material changes and notify a claim in a traceable written form. A late claim notification cannot be penalized when an accident or force majeure caused the delay. Arbitration clauses or clauses shortening the limitation period are ineffective without express consent. Insurers must publish their tariffs and products and provide advice when requested. The general limitation period for insurance claims is two years. It is five years for personal insurance and for life or personal-accident claims brought by heirs. An expert appointment or a written payment demand with proof of receipt can interrupt the period. The usual court is the insured person's place of residence, subject to special rules for property and the location of the loss. A policy can generally be cancelled each year without compensation by giving at least one month's notice. A change of residence, profession, retirement or activity, or family status can permit cancellation within three months, usually with a proportional premium refund. The request should be made in writing with proof of receipt. When a motor vehicle is sold, its cover is suspended from 00:00 on the following day; cancellation with ten days' notice is possible, and the policy ends automatically no later than six months after the sale with a proportional refund.