Plan of Guatemala’s scraps over mandatory car insurance after protests

After two days, sometimes violent protests by Guatemala Bernard Areval President abandoned a decree that would make the car forced insurance in Central America.

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

The President Areval claimed that the new rule was necessary to compensate the victims of the road accidents, but many in Guatemala – where, according to the estimation, 55% live in poverty – they said they would not be able to afford additional costs.

Thousands blocked large roads and collided with the police on the date of the decree on Monday.

The government has issued a decree On the eve of a deadly bus accident last month, which killed more than 50 people.

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

“I remain convinced that the new general transport law is the right way forward for the well -being of our country,” he said, adding that the road accidents were the main cause of death in Guatemala.

He said that after the talks with the protesters, both sides agreed to create a technical committee to come up with a plan to introduce mandatory insurance during the year.

One of the problems announced by the protesters was that the decree was published without giving motorists an idea of ​​the costs they would have suffered as soon as it came into force on May 1.

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