Guatemala’s compulsory insurance scraps are planning after protests

Two days after violent protests, Guatemali President Bernardo Arvalo withdrew a decree that would make car insurance mandatory in the Central State of Central.

Under the new law, it was necessary to be asked to ask owners of cars, trucks, buses and motorcycles to take the insurance to cover the harm caused by others in the event of an accident.

President Arvalo argued that the new base was necessary to compensate for traffic victims, but many in Guatemala – where about 55 % live in poverty – they will not be able to bear the additional cost.

Thousands prevented the main roads and clashed with the police in the days when the decree was announced on Monday.

The government issued the decree In the wake of a fatal bus accident last month in which more than 50 people died.

Speaking at a press conference on Wednesday, the president said he was elected to make the necessary changes in the country, some of which may be difficult.

“I am still convinced that the new public transport law is the right path forward for the welfare of our country,” he said, adding that traffic accidents were the main cause of death in Guatemala.

He said that after talks with representatives of the demonstrators, the two sides agreed to establish a technical committee to reach a plan on how to submit mandatory insurance within a year.

One of the concerns expressed by the demonstrators was that the decree was published without giving car drivers an idea of ​​the costs that they had incurred as soon as they entered into force on May 1.

The siege was injured in parts of the capital, forcing schools and some companies to close.