Law No.

4117 on Mandatory Insurance

against damage caused
by Motor Vehicles
(GO No.4174)

Art. 1.- Every owner or possessor of a motor vehicle that circulates on the
country's land routes is obliged to provide an insurance policy that covers
civil liability in cases of accidents caused by the vehicle to third parties or
property. .

Paragraph: With regard to motor vehicles covered by conditional sales

contracts in the course of execution, the obligation established by this
article corresponds to the buyer of the vehicle.

Art. 2.- (Modified by Law No. 4341, December 8, 1955, GO No. 7922). The
global amount of the policy will not be less than RD$8,500.00 for each
vehicle and will include all the risks specified in Art. 5 of this law.

Art. 3- Every vehicle required to be covered by insurance must carry in a

visible place a certificate from the insurance company, stating the existence
of the policy corresponding to the day.

Paragraph 1.- The violation of this article will be punished with a fine of
FIVE GOLD PESOS (RD$5.00) to TEN GOLD PESOS (RD$10.00), and in case of
recidivism the penalty will be from TEN GOLD PESOS (RD$10.00) to FIFTY
GOLD PESOS (RD$50.00).

Paragraph II.- (Modified by Law No. 5448 of December 8, 1960, G. EITHER.

No. 8529).

The Peace Courts will be competent to hear violations of this article and
offenders may be released from the corresponding trial by paying at any
Internal Revenue and National Property Collection Office in the country,
within a period of ten (10) ordinary days from the date in which the
infringement report is implemented, the maximum of the fine corresponding
to the offense committed, in accordance with the procedure followed in
Art. 180 of the Law on Vehicle Traffic.
Art. 4.- The premiums to be paid for each policy will be set in a general way
by the Executive Branch, at the proposal of the entities authorized for that
type of insurance, with the classifications that are applicable.

Art. 5- The policy will respond civilly up to an amount that does not exceed
the limits stated below: a) in the case of bodily injury or death of a person,
up to THREE THOUSAND GOLD PESOS (RD$3,000.00); b) in case of bodily
injury or death of at least one person, as a result of an accident, up to SIX
THOUSAND GOLD PESOS (RD$6,000.00); c) In case of damage to another's
property due to accident, up to TWO THOUSAND GOLD PESOS (RD$2,000.00)
for the payment of legal costs.

Paragraph.- (Amended by Law No. 4341, December 8, 1955. GO No. 7922).

Motor vehicle owners may, however, take out policies that cover, in the
indicated cases, for greater value, and for any other risks.

Art. 6.- (Repealed by Law No. 4341, December 8, 1955, GO No. 7922).

Art. 7.- The State and official institutions whose solvency in the event of
civil liability does not require that type of guarantee will not be subject to
the insurance provided for in this law.

Art 8.- Likewise, the insurance established by this law will not be mandatory
for foreign diplomatic officials accredited in the country, from nations
where the same exemption exists for Dominican diplomatic officials.

Art. 9.- Travelers from abroad may obtain the insurance established by this
law, only for the period of stay in the country, and consequently, the
premium they must pay must be proportional to the indicated period.

Art. 10.- The insurance entity will only be obliged to make payments from
the policy when it is notified of a judicial ruling with the authority of
irrevocable res judicata, which condemns the insured to compensation for
injuries or damages caused by the vehicle covered by a policy. insurance
and for duly settled legal costs, and provided that the entity has been
brought to account in the process that gave rise to the sentence, by the
insured or by those seeking compensation. The insurance entity will have
the capacity to allege in justice, in this case, everything that tends to
reduce the quantum (sic) of the civil liability, or the non-existence of the
same.

Paragraph.- (Added by Law No. 315 of July tenth, 1964, GO No. 8874 and
modified by Law No. 432, October 3, 1964, GO No. 8896). When it is a
default sentence issued due to any of the infractions of blows and injuries
caused by the handling or driving of a motor vehicle, provided for and
sanctioned by Law No. 5771, dated December 31, 1961, or for damage to
property, and the insurance company has been brought to trial, said ruling
will not be subject to opposition, either in the first instance or on appeal.

Art. 11.- (Amended by Law No. 4341, December 8, 1955, GO, No. 7922).
Every insurance company is obliged to notify the General Directorate of
Internal Revenue of the lack of renewal with it of the insurance policy, so
that this Directorate investigates whether the owner or holder of the vehicle
demonstrates that he maintains compliance with the obligations of this law.

Art. 12.- Like any entity duly authorized to exercise, in accordance with the
law, the business of insurance against vehicle accidents, the Dominican
Social Security Fund may, from now on, exercise said insurance business,
subject to the rate of premiums approved, in accordance with this law, by
the Executive Branch. In the exercise of said business, the Dominican Social
Security Fund will not be exempt from any tax, being, on the contrary,
obliged to pay the same taxes as if it were a private entity.

Paragraph.- To carry out the insurance business referred to in this law, the
Fund must obtain a special authorization from the Secretary of State for
Welfare and Social Assistance, which will establish the minimum premiums
and conditions under which said entity must operate. the vehicle accident
insurance business.

Art. 13.- (Amended by Law No. 5448 of December 8, 1960, GO No. 8529).

Any violation of this law, except that of Article 3, will be punished with a
fine of FIFTY GOLD PESOS (RD$50.00) to ONE HUNDRED GOLD PESOS
(RD$100.00) and in case of recidivism the penalty will be ONE HUNDRED
GOLD PESOS (RD$100.00) to FIVE HUNDRED PESOS GOLD (RD$500.00).

TRANSITIONAL PROVISION: (Added by Law No. 5448 of December 8, 1960, GO

No. 8529). Those persons who, upon the publication of this law, have
pending payments of fines and submissions in the courts of the Republic for
violation of any provision of Law No. are freed from all criminal prosecution.
4117, if within a period that expires on December 31 of the current year,
the offender shows the corresponding court the certificate from the
insurance company stating the existence of the insurance up to date and
pays to the Internal Revenue and National Assets Collection* the sum of TEN
GOLD PESOS (R$10.00) for all penalties, in accordance with the procedure
established by Article 180 of Law No. 4809, on Vehicle Traffic.

Art. 14.- This law will come into force 30 days after the publication of the
decree of the Executive Branch that approves the rate with the
classifications that may be applicable, of the premiums to be paid for motor
vehicle insurance policies.

Art. 15.- The Executive Branch will dictate all the regulations that are
necessary for the best execution and full application of this law.

GIVEN in Ciudad Trujillo, District of Santo Domingo, Capital of the

Dominican Republic, on the twenty-second day of the month of April of the
year one thousand nine hundred and fifty-five (1955), year of the Benefactor
of the Homeland, 112° of Independence, 92° of the Restoration and 25th of
the Era of Trujillo.