Compulsory motor insurance and road accident compensation in Iraq

In briefEvery car in Iraq is automatically insured under Law No. 52 of 1980, and the insurer must compensate death or bodily injury caused by use of a car regardless of fault, paid in one lump sum. The right lapses if the insurer is not notified in writing within one year, and actions are time-barred after three years.

The first question after a road accident, from an injured person or a bereaved family, is who pays. The first answer lies in the Compulsory Insurance against Motor Vehicle Accidents Law No. 52 of 1980, published in Official Gazette No. 2766 on 31 March 1980 and in force from 1 January 1981. The office of Ali Barakat in al-Yarmouk, Baghdad, sets out here what this law covers and what it demands of a claimant.

Automatic cover

Article 1 treats every car in Iraq as automatically insured. The injured person's right does not depend on any policy in the driver's or owner's name. The law's explanatory memorandum says it rests on a statutory relationship between insurer and insured rather than on a contract. Law No. 9 of 2016 added a provision collecting the premium as a share of fuel sales, so the premium is no longer demanded from each owner separately.

What the insurance covers

Article 2 obliges the insurer to compensate death or bodily injury suffered by anyone as a result of using a car in Iraq, whether or not fault is shown. A car means any motor vehicle running on fuel and able to travel on roads, other than rail vehicles, and a trailer attached to it counts as part of it. Compensation is paid to the person entitled in a single sum; it may not be split into instalments or turned into a periodic income. The insurer is the National Insurance Company or any body entrusted with applying the law.

Damage to property, such as repairs to another car, is outside this cover except where the vehicle is foreign and has entered Iraq (article 2(3)). Otherwise property damage is a civil claim against whoever is responsible; see Civil compensation claim for a traffic accident.

Injury to the driver

Article 7 excludes, except in death cases, bodily injury to the driver of the car unless it results from a collision or the car overturning, and injury caused by the injured person's own deliberate act unless that act stemmed from a mental illness that removed his will. Compensation in collision, overturning and mental illness cases is payable only under a final court judgment.

Unidentified vehicles

Where a car drives off and is never identified, article 9 still obliges the insurer to compensate death or bodily injury, provided the accident is recorded with the police within seven days of occurring or of becoming known, backed by an official report showing the injury or death came from use of a car. The claim lapses if the insurer is not told within thirty days of the injured person learning of the accident, and in any case no later than one year from the accident; payment requires a final judgment. If the car is later identified, the insurer can recover from its driver unless he shows he did not know of the accident.

Notice and limitation

Article 13 removes the right to claim from the insurer if neither the injured person, the insured nor the driver tells the insurer in writing within one year of the accident, or of the injured person learning of it. Notice of one person's injury does not count as notice for another person hurt in the same accident, so each injured person needs separate notice. Actions under the law are time-barred after three years, and no action is heard after seven years from the event.

A direct right against the insurer

Article 14 gives the injured person a direct right against the insurer, and the recovery cases in article 8, such as an unlicensed or drunk driver, cannot be raised against him. The claim may be pursued before the criminal court. Article 6 forbids the insured from offering or accepting any compensation arrangement with the injured person without the insurer's written consent; any such arrangement does not bind the insurer without it. Under article 10 the insurer steps into the injured person's rights against a liable third party to the extent of what it paid. See Owner, driver and insurer liability.

Legal basis and sources

Frequently asked questions

Do I need a policy in my name for the injured person to be compensated?

No. Article 1 makes every car in Iraq automatically insured.

Does the cover include repairing the damaged car?

No. Compulsory cover is for death and bodily injury; property damage is included only for foreign vehicles. Repairs are claimed civilly from whoever is responsible.

How long do I have to notify the insurer?

One year from the accident, or from the injured person learning of it, in writing, under article 13.

Always check the text in force and its amendments in the official source.

To ask about your matter

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Compulsory Motor Insurance and Traffic Compensation