The government is set to launch a new insurance scheme aimed at covering vehicle damages, as part of wider efforts to address the growing number of road accidents in the Maldives, particularly in the congested capital region.
Transport Minister Mohamed Ameen stated that the new initiative is expected to be introduced within the next two months. The Ministry of Transport and Civil Aviation is working closely with insurance providers to develop a more comprehensive insurance package that offers better protection for vehicle owners.
The Male’ region remains the most traffic-congested area in the country, with frequent road accidents leading to significant vehicle damage and, in some cases, fatalities. Police statistics show that 762 accidents were reported in the first three months of 2025 alone. Authorities attribute the increase in accidents to the high volume of vehicles and reckless driving in the capital.
In response, the government is drafting amendments to existing laws to improve road safety. Among the proposed measures is the introduction of a new third-party insurance framework designed to cover damages sustained during traffic collisions. The plan also includes strengthening compensation mechanisms to ensure that vehicle owners are adequately reimbursed for losses.
The insurance reforms are part of a broader push to resolve longstanding traffic issues through legislative action. The President previously announced that a bill would be submitted to Parliament to introduce stricter road regulations. This latest initiative by the Transport Ministry builds on that commitment and seeks to enhance both road safety and financial security for vehicle owners.
