Insurance in Papua New Guinea

Papua New Guinea does not have one comprehensive national social insurance system covering health, unemployment, old age, disability and survivors for the whole population. The National Social Protection Policy and Strategy 2022–2030 is being implemented and reviewed, but informal workers and many rural households remain under-served. Wantok, family, church and community assistance can provide practical help, but it is not a contractually guaranteed insurance benefit. Licensed private insurance is established but fragmented. General insurance covers products such as motor, property, marine, liability, personal accident and credit insurance. Life insurance includes term life, group life and endowment products. Providers may distribute cover through an employer, bank, broker or direct sales channel. Underwriting considers factors such as age, risk, sum insured and exclusions, so premiums and acceptance differ between applicants. Property insurance is not a general state requirement, although a lender may require it for a mortgaged property. Health insurance is a separate health-related subject and should not be assumed to form part of another policy. The Office of Insurance Commissioner, commonly called OIC, regulates general insurance and the licensing of general insurers, brokers and reinsurers under the Insurance Act 1995. The Bank of Papua New Guinea, or BPNG, regulates life insurance, prudential standards, conduct and policyholder protection under the Life Insurance Act 2000. A March 2026 BPNG list recorded 20 general-insurance institutions and four life insurers, but customers should check the current register before relying on a listing. Life insurers have a minimum capital requirement of K4 million. For PNG risks that fall under the Insurance Act's insurance requirements, cover generally needs to come from a licensed insurer. An exception for exhausted local capacity requires an application to the OIC at least 14 days before the insurance begins. The public OIC website was reported under construction, so current contact and complaint instructions should be checked directly. Workers' compensation covers injury, disease or death arising out of and in the course of employment. Private employers generally arrange a policy with a licensed insurer to cover their statutory liability, and claims can involve the employer, the insurer and the Office of Workers' Compensation. Dependants may have rights after a work-related death. The treatment of migrant workers and overseas workers is part of continuing review and supervision, so a specific employment situation may require confirmation from the responsible office. Superannuation is retirement saving rather than ordinary risk insurance. Employers with at least 15 employees generally participate, and an employee normally needs three continuous months of employment before the contribution rule applies. The employee contribution is at least 6% of base salary and the employer contribution is at least 8.4%. Each month's contribution is due within 14 days after the month ends. BPNG supervises the system and can enforce contribution obligations. Compulsory motor third-party insurance, often called CTP, is provided by MVIL and is linked to vehicle registration. The owner needs current cover at first registration and at each annual renewal, and registration evidence includes proof of that cover. CTP covers death and bodily injury suffered by third parties. It does not cover damage to property or vehicles and does not cover the driver's own loss when the driver caused the accident. Statutory limits are K150,000 per person and K750,000 for one accident event. An uninsured vehicle can attract a penalty of up to K200. Registration functions are delegated in many provinces, with different arrangements in Milne Bay and Morobe; CTP is available nationwide through MVIL offices and branches, but local arrangements should be checked at registration. A CTP claimant brings the claim against MVIL rather than directly against the vehicle owner or driver. The accident should be reported promptly to the police and MVIL. A written notice of intention and a Claims Lodgement Form are generally required within six months, together with documents such as a Police Accident Report, medical reports, owner confirmation and other evidence. A claimant should not accept a settlement, start litigation or make an admission without written consent where the statutory procedure requires it. Late claims may be taken to the Insurance Commissioner and, where appropriate, the National Court with an explanation for the delay and supporting police or medical reports. For a death, a District Court magistrate or coroner may order temporary relief known as bel kol moni; this does not provide compensation for property damage. For any other policy, the wording controls the insured event, exclusions, deductible, sum insured, premium, term, renewal and cancellation. A customer should verify the provider or broker, request a quotation, complete the proposal, review the policy schedule and exclusions, pay the premium and keep the certificate and full policy. Changes such as an endorsement, cancellation, non-renewal, beneficiary change or ownership change follow the policy terms; Papua New Guinea has no single switching portal or general cooling-off period established for every product. Complaints should first be made in writing to the insurer, broker or MVIL with a claim or file number. General-insurance complaints can be referred to the OIC and life-insurance complaints to BPNG. The Ombudsman Commission investigates government agencies rather than private companies, while unresolved contract or payment disputes may require court proceedings.