Guatemala Plan for Obligatory Car Insurance After Protests

After two days of sometimes violent protests, Guatemala President Bernardo Arevalo withdrew a decree that would make the insurance car a mandatory in the Central American nation.

According to the new law, owners of cars, trucks, buses and motorcycles would need to take insurance to cover damage caused by others in the event of an incident.

President Arevalo claims that the new rule is necessary to compensate for victims of road accidents, but many in Guatemala – where approximately 55% live in poverty – said they would not be able to afford the extra costs.

Thousands have blocked the main roads and confronted the police in the days since the decree became public on Monday.

The Government has issued the decree As a result of a deadly bus crash last month, in which more than 50 people were killedS

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

“I remain convinced that a new common transport law is the right path for our country’s well -being,” he said, adding that road accidents are the main cause of death in Guatemala.

He said that after talking with representatives of the protesters, the two parties agreed to set up a technical committee to come up with a plan on how to introduce compulsory insurance within one year.

One of the concerns that were expressed by the protesters was that the decree was published without giving motorists an idea of ​​the costs they would make after it came into force on May 1.

The blockades were paralyzed parts of the capital, forcing schools and some businesses to close.