The regulatory tasks in the insurance field, in BiH, belong to the individual entities and consequently MTPL insurance is governed by very different rules. In Republika Srpska a new Law on MTPL was adopted in 2015, provided for a regulatory environment in the field almost entirely aligned to the EU standards.
The FBiH was somehow late in modernizing its MTPL legislation and finally adopted a new Law this year. Yet, while visible improved, the new Law is still different from the one governing the MTPL insurance in Republika Srpska, one of the main difference being that it maintains for more five years a controlled market, with insurance tariffs set by the supervising Agency. After 31 October 2025m insurers will be able to set their own tariffs and insurance conditions, provided a prior consent of the Agency is got.
Another novelty introduced by the new FBiH Law relates to compensation for material and non-material damages as a result of the death or injury of a third party. The law provides for a legal deadline of 30 days within which the insurer must settle the claim.
The minimum insured amounts for compulsory MTPL insurance, per event, are: in case of damage to persons - BAM 2,000,000 (~ EUR 1 million); for damage to property - BAM 400,000 (~ EUR 200,000). The Law also introduces a tabular method of determining compensation for non-pecuniary damage.