Insurance in Mozambique

Mozambique's insurance system includes social insurance administered by the Instituto Nacional de Segurança Social (INSS) and private insurance provided by authorised seguradoras, micro-seguradoras and mediadores. A seguradora is an insurer, a segurado is the covered person, the tomador contracts and pays for the cover, a beneficiário receives a benefit, a prémio is the premium, an apólice is the policy, a sinistro is a covered loss event, indemnização is compensation and franquia is the deductible paid or retained under the policy terms. The Instituto de Supervisão de Seguros de Moçambique (ISSM) regulates and supervises insurers, reinsurance, insurance intermediaries and pension funds. The Ministry of Finance is responsible for insurer licensing. The INSS administers compulsory social insurance. Public employees and employees of Banco de Moçambique may fall under separate statutory schemes. The principal framework includes Decreto-Lei 1/2010, Decreto 30/2011, Decreto 39/2018 and Decreto 53/2019; the current legal position should be checked when a 2025 reform proposal or later amendment may affect the answer. Compulsory private covers include motor third-party liability, work accidents and occupational diseases, sports insurance in the cases covered by the applicable rules, and condominium or fire insurance where the legal requirement applies. The vehicle owner normally arranges compulsory motor cover. In usufruct, retention of title or leasing arrangements, the usufrutuário, buyer or lessee may carry the responsibility. The cover protects third-party bodily and property damage up to the insured capital. Damage to the policyholder's own vehicle or occupants generally requires optional cover. Drivers should carry proof of insurance. The vehicle insurer may not refuse a compulsory motor policy, and a vehicle sale ends the contract at 24:00 on the sale date rather than transferring it automatically; written notice and return of the certificate are required. Employers arrange cover under the uniform work-accident policy for workplace accidents and occupational diseases. This cover is separate from general healthcare. Social insurance through INSS generally covers national and foreign employees, including qualifying part-time employees, probationary employees and paid interns, especially in the private sector. A foreign employee can be exempt when another social-insurance scheme is proved through the required consular or official certification. Employers register within 15 days, provide employee information within 30 days and submit monthly earnings declarations and payment by the 20th day of the following month. The standard contribution is 4% from the employer and 3% from the employee, or 7% in total. A trabalhador por conta própria (TCP) conducting an independent economic activity or working under an individual service contract registers and reports the activity within 30 days. The application normally uses an identity document, DIRE or passport, a licence or equivalent, NUIT, bank and contact details, and family information. The TCP contribution rate is 7% paid entirely by the worker, calculated on a freely selected base that cannot be below the applicable sector minimum wage. Payment is due by the 20th day for the previous month, and up to 12 months may be paid in advance. Persistent non-payment can suspend benefits, although a death or funeral allowance may remain available when its conditions are met. After at least 12 months of contributions, voluntary continuation can be available with full self-payment. INSS benefits can include sickness, hospitalisation, maternity, paternity, invalidity, old age and death benefits. The stated 2024 maternity period is 90 days; paternity leave is 7 days and may reach 60 days in the applicable circumstances. Old-age pension access can be based on age and contributions, including age 55 for women or 60 for men with 240 contribution months, or an alternative based on 420 contribution months regardless of age. The pension calculation uses the last 60 months of earnings. Death-related protection can include a funeral allowance, burial assistance and a survivor's pension, subject to the applicable proof and eligibility rules. Private insurance is divided broadly into Vida and Não Vida. Examples include motor, fire and natural hazards, transport, liability, credit, bonds, legal protection, assistance, life, accident, health and annuity products. Cover normally starts after the premium is paid. The insurer should issue the policy at contract conclusion or within 30 days. If no policy is issued after 30 days, the contract can be dissolved with full premium repayment. If an insurance application receives no response within 15 days, it is treated as accepted under the applicable rule; when additional information is requested, the response period is at least 10 days. Standard policies usually last one year and renew, while life policies often last longer than one year. Early termination can lead to a proportional premium refund, subject to the policy terms. Use an insurer, micro-insurer or intermediary listed or authorised by the ISSM. In 2024, Mozambique recorded 24,165.6 million MT in gross premiums, 11.5% growth, insurance penetration of 1.66% and average premium per person of 727.9 MT. Não Vida represented 86.2% of production. Motor insurance accounted for 632,750 policies, including 505,876 compulsory motor policies. The market list contained 23 insurers, two micro-insurers and seven insurers authorised for micro-insurance, while 945 intermediaries handled 70.3% of all policies. Micro-insurance represented 0.18% of total production and fell by 5.3%, despite its relevance for lower-income households and informal economic activity. Premiums depend on the insured risk and the policy terms rather than on one uniform state tariff. For motor insurance, the insured capital, vehicle category, number of seats and engine size commonly affect the price. Non-payment can remove cover, prevent renewal or cause immediate termination when instalments are overdue. A claim should follow the policy's reporting procedure and generally be notified within eight days. Give the cause, date, place and extent of the loss. A motor claim commonly requires police or traffic-police records, photographs or witnesses, the other driver's identity, registration number, insurer and insurance evidence. The insurer should issue a position within 15 days and pay within 30 days after the assessment is complete and the compensation amount has been agreed. Disagreements about the cause or extent of damage can require an expert assessment. A policyholder can complain first to the insurer and then seek ISSM review, mediation, arbitration or court proceedings. Changing a covered risk generally requires an additional act to the policy. Life-policy beneficiaries should be named expressly because family members do not automatically become beneficiaries. Contract termination, renewal, premium consequences and risk transfer depend on the policy and the applicable insurance rules.