News Middle East07 Dec 2025

Morocco:House of representatives overhauls law to modernise auto accident compensation system

| 07 Dec 2025

Morocco's House of Representatives, which is the lower house of Parliament, has approved a draft law amending a 1984 royal decree concerning compensation for victims of accidents involving motor vehicles.

Minister of Justice Abdellatif Ouahbi, explaining the reform, said that the 1984 decree no longer adequately addressed the rapid changes in mobility. Transport modes such as trams and autonomous vehicles previously lacked precise legal classification.

The amended law introduces more clearly defined frameworks and harmonises interpretations, particularly those related to income used to calculate compensation. The new framework overhauls the compensation system, notably through an average increase of approximately 150% in the amounts payable.

The reform also standardises the limitation periods to five years, both for conciliation procedures and for the revision of compensation in the event of aggravation of the damage, by setting clear rules concerning the interruption or suspension of these periods.

Another major change is the expansion of the scope of eligibility. Children under guardianship, their guardians, disabled spouses, as well as students and trainees in higher education or vocational institutions, will now be eligible for compensation. Furthermore, the minimum wage used as the basis for calculating the amounts will be gradually increased by 54%.

One point of contention about the new law surrounds a clause stipulating that the new provisions will not apply retroactively to accidents that occurred before the text's publication in the Official Gazette, according to local media reports. The argument is that the law's implementation could be postponed, thus saving insurers considerable sums at the expense of victims awaiting compensation.

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