WHEREAS, loss of lives, bodily injuries, and damages to properties caused by vehicle accidents are creating social problems;

WHEREAS, it is necessary to establish a system for facilitating the provision of emergency medical treatments to victims of vehicle accidents, and to require owners of vehicles to have third-party insurance coverage against third-party risks;

WHEREAS, during the implementation of the existing proclamation on vehicle insurance against third-party risks, identified problems and issues not incorporated therein have arisen, as a result, it has been found necessary to have a law addressing these issues and other related issues;

NOW, THEREFORE, in accordance with Article 55(1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows: