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In response to intense protests spanning two days, Guatemalan President Bernardo Arévalo has officially rescinded a decree that would have mandated car insurance across the Central American nation.
The proposed legislation required that owners of various vehicles, including cars, buses, lorries, and motorbikes, secure insurance to cover liability for damages caused in the event of accidents.
President Arévalo defended the initiative, asserting that it was essential for providing restitution to victims of traffic incidents. However, many Guatemalans—approximately 55% of whom live below the poverty line—expressed concerns that they could not bear the financial burden of the added expense.
In the days following the decree’s disclosure on Monday, protests erupted, leading to thousands of demonstrators blocking key roads and engaging in confrontations with law enforcement.
The government had issued the controversial decree following a tragic bus accident last month that resulted in the deaths of over 50 individuals, an event underscoring the urgent need for traffic safety reforms. Read more about the tragic accident here.
During a news conference on Wednesday, President Arévalo emphasized his mandate to implement necessary reforms in the country, acknowledging that some changes might be challenging. “I remain convinced that a new general transport law is the right way forward for the wellbeing of our country,” he stated, noting that traffic accidents have become a leading cause of mortality in Guatemala.
After discussions with representatives of the protesting groups, an agreement was reached to establish a technical committee tasked with formulating a plan to introduce mandatory insurance within a year.
A significant point of contention among protesters was that the decree was enacted without any clarity regarding the financial implications for vehicle owners, leaving many unsure of the costs they would be facing once the regulation was to take effect on May 1.
The protests led to extensive disruption in the capital, resulting in school closures and the temporary shutdown of several businesses.
Source
www.bbc.com