Government Control and Supervision of Motor Vehicle Insurance Companies in Cameroon: An Appraisal of the Cima Code

Abstract

The increasing number of victims of automobile accidents has created in every country an urgent social problem. The government’s interest is aroused here since insurance touches the economy much. That is the more reason why government regulates the activities of insurers in order to guarantee a sound economic environment and to protect the interest of policyholders. This control is exhibited by way of preventive, concurrent and final controls extended to the place of business and subsidiaries. The objective of this paper is therefore to examine the extent of government control and supervision of motor vehicle insurance company in Cameroon, its compliance with the CIMA Code and challenges faced. To achieve this objective, the paper adopts a methodology which is doctrinal consisting of primary and secondary data. The findings reveal that though measures have been put in place in compliance with the provisions of the CIMA Code to regulate the activities of motor vehicle insurance companies, the intentions of the legislator have not been reached as it is fraught with challenges. Considering that insurance contracts are contracts of adhesion par excellence, it is recommended that the government should step up measures to better protect the parties involved in the contract as well as ensure that parties perform their obligations