Somaliland vehicles will able to drive throughout Ethiopia after deal reached on insurance


This is great news. They should now tighten the license plates registration processes. As vehicle owners from outside Somaliland i.e. PL, Somalia will start using it illegally.

I did not know that a car with Somaliland plates could not drive to Ethiopia before.

I think the first hurdle was to get motor vehicle insurance both inside and outside Somaliland. Second is sorting out the registration process as Suldaanka alluded to, it is open to abuse at the moment. This could be an income generator for the govt if they add tax to the insurance.

This will also improve road safety. Embedding road safety in insurance products and services, such as bonus-penalty mechanisms for insurance. Risk-based pricing is a powerful tool in the promotion of personal responsibility, as it links the causing of an accident to the economics of paying for those consequences, which in turn gradually lead to safer driving and behaviour change.

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