In the US and other countries banks require title insurance as a requirement to obtain a mortgage loan. Here for commercial or private loans, banks require a person to obtain fire and life insurance policies as a guarantee that if the person passes away the insurance company will reimburse the bank for the unpaid portion of the loan. The property you are buying is not sufficient collateral for banks in Panama.

You have the option of buying these insurance policies from the bank or getting them from a broker.

THE LAW

Article 36 of the Law 59 of 29 of July of 1996.

Clients of private and state banks, financial companies, fiduciaries, credit institutions, and automobile agencies, have the liberty to decide and designate their insurance companies and their insurance brokers (natural or juridical) in those transactions in which the purchase of an insurance is needed.

There are numerous advantages of obtaining life and fire policies from a broker.

THE BENEFIT OF HAVING AN INSURANCE BROKER

An insurance broker is an intermediary between the client and the insurance company and/or the bank. We believe in creating lasting relationships with our clients and in order to do so we have to provide our clients with the fastest service and the lowest premiums that satisfy their individual needs. After doing a need analysis, we give our clients a few options with different premiums for them to choose which one they find more suitable.

When it comes to bank mortgage or loans we do this on a daily basis, so we know the importance of being reliable and fast. We handle all the paperwork required by the insurance company and after the policy is emitted we take it to the bank, so it’s more convenient for our clients.

LOWER PREMIUMS

We offer term policies for mortgage loans. What this means is that unless you choose to get a permanent policy, we do policies specific for the amount of the loan. You can bring us the quote on the policies the bank offers and we will always beat that price!

VIP SERVICE

We understand that your time is valuable; this is why we design everything to fit your commodity. Many of our clients prefer to do their exams in their own country since their stays in Panama are short. To do this we have arrange a network of labs and doctors in most countries of the world. All we need to do is know where you live permanently and we will send you to one of our providers. The costs of the lab and/or medical exams will be reimbursed using as a reference the cost for those exams in Panama.

If you have a longer visit it is preferable to do those exams here in Panama. Our lab specialist and/or doctor will come to you (even to your hotel) at no cost or you can go directly to the clinic and/or lab.

Let us know to coordinate an appointment. The exams should not take more than a few minutes.

Contact our customer service department at forlacol@gmail.com or by phone (507) 6676-5151 for more information on how to get a mortgage in Panama.

Mortgage from a US Bank

A prestigious international bank based of Florida has just approved mortgages for US citizens purchasing property in Panama. This is the first of several banks who are in the process of establishing international mortgages in Panama.

FIRE AND TITLE INSURANCE will be required to obtain a mortgage from this bank.

To get more information how to obtain a Mortgage from a US Bank or to get a quote, contact our customer service department at forlacol@gmail.com or by phone (507) 6676 5151.

Home Owner’s Multi Risk or Fire Insurance

Fire Insurance covers the structure of a property - roof, walls, and ceiling. Rates depend on the material used for construction (cement, mixture of cement/wood, or wood) and the location of the property (urban or rural areas). Fire protection covers you for catastrophic damage - earthquake, hurricane/windstorm, lightning, explosion, falling objects/vehicle impact, smoke damage, and debris removal. Flood and landfall can be included in this policy.

Your maintenance fee does not include fire damage.

Fire insurance is required by banks in order to obtain a mortgage.

Home Owner’s Multi Risk - Content + Fire Insurance - protects the content of a property to a certain percentage (25, 50, or 100%) for theft. This policy can also protect you from theft outside your home, breakage of mirrors/crystals, electronic equipment, and civil responsibility (including fire).

Claims are based on good faith here in Panama, but it is recommendable to keep the receipts in case of a claim. Claims are based on depreciated value of objects.

Renters can apply for Home Owner’s coverage.

Companies give a 5% discount if you pay the full premium.

To get more information on Home Owners or Multi Risk Insurance or to get a quote, contact our customer service department at forlacol@gmail.com or by phone (507) 6676 5151.

• Cars made in the year 2000 or newer can be insured for Full Coverage - civil responsibility (personal injuries and damage to foreign property), medical assistance, and coverage for the insured vehicle (collision and comprehensive).
• Cars from 1999 or older are insured for Civil Responsibility (damage to thirds) under Panamanian law. This coverage includes foreign property and personal injuries for third parties. Your policy can also include medical assistance for the driver/passengers in your car.
• The older the car the higher the premium for full coverage. This has to do with the risk of a car accident and older parts are harder to get and more expensive.
• Depreciation is done 20% first year (some companies do 15%) and then 15% the rest of the years.
• If you bring your car to Panama include the entry taxes as part of the value of the car.
• For you to be covered your license needs to be valid. You can use any license from any country or an international license; just make sure it’s not expired!
• No-fault coverage does not exist in Panama.
• If you are financing a car, banks will require you to have a full coverage policy. It is much better to use a broker who can asses your needs, compare different premiums, and assist you in a claim. The Law 59, of July 29, 1996 (which regulates insurance in Panama) in Article 36 states that a consumer has the right to chose who will sell him/her insurance. So don’t pay higher premiums at the bank!
• AAA does not exist in Panama, but your insurance policy has roadside assistance included! This covers jump-starts, towing, a tire change, or gas delivery (gasoline costs are not included).
• Policies in Panama can offer a great number of benefits such as legal service, extraterritorial coverage, or towing services.

To get more information on car insurance or to get a quote, contact our customer service department at forlacolC@gmail.com or by phone (507) 6676 5151.

• Reimbursement for a rental in case of complete theft of the auto ($20.00 daily with a max. of $600.00)
• Civil responsibility for replacement car
• Accidental death coverage: $5,000.00 per person, $25,000 per accident

Additional Benefits:
Roadside Assistance - 205-0224

• Legal assistance in traffic accidents.
• Towing service: caused by mechanical damage or a traffic accident. Up to $150.00 per event, three (3) events per year, maximum annual benefit $150.00.
• Medical emergency service: ambulance service and medical attention in case of an automobile accident, 24
• hours a day and 365 days of the year.
• Basic roadside assistance includes a jump-start, a tire change, or gas delivery (gasoline costs not included): Up to $150.00 per event, three (3) events a year. Maximum annual benefit of $450.00.
• Locksmith for loss or misplacement of keys: Up to $150.00 per event, three (3) events a year. Maximum annual benefit of $450.00.
• Transportation to your home because of immobilization of the vehicle (starting from kilometer 25): Up to $100.00 per event, three (3) events per year.
• Hotel expenses caused by an accident or breakdown of the vehicle (starting from kilometer 25): Up to $100.00 per event, maximum 5 days per event, three (3) events per year.
• Auto rental in case of car theft (starting from kilometer 25): Up to $200.00 per event.
• Medical assistance outside of the country: Reimbursement of medical expenses and hospitalization due to auto accident (including the insured person, the spouse, and children under eighteen (18) years of age) during their stay abroad. Up to $5,000.00 yearly.

We Arrive First

We arrive within 30 minutes or less at the scene of the accident or the insured person is 100% exonerated of the payment of the deductible. (*)

Delivery of the repair order at the auto repair shop of your preference, in case of an accident

A lawyer will represent the insured person in front of court in case of a traffic citation.

(*) Applies:

From the Church of Don Bosco in Calidonia (by Vi­a Espana) until the intersection with Vi­a cincuentenario and Ri­o Abajo.

From the Church of Don Bosco in Calidonia (by Vi­a Transistmica) until the bridge of San Miguelito and the South part of the City until Avenida Balboa.

Reimbursement of Gasoline for Unemployment

Gasoline costs will be reimbursed up to a maximum of three (3) months, in case of an involuntary unemployment for more than 30 consecutive days; depending on the amount of cylinders the car has, using the following parameters:

For cars with four (4) cylinders: $25.00 max monthly, up to $75.00 annually.

For cars with six (6) cylinders: $35.00 max monthly, up to $105.00 annually.

For cars with eight (8) cylinders: $50.00 max monthly, up to $150.00 annually.

Restrictions Apply.

To get more information on car insurance or to get a quote, contact our customer service department at forlacol@gmail.com or by phone (507) 6676 5151.

Plan 160:

Payment Options:

• Cash
• Credit card or bank discount

Conditions:

• Applies only to personal autos with up to 15 years of use.
• Applies to clients with a good transit record.
• Autos with 11 years or more of usage will need to be previously inspected.

Additional Benefits:

Roadside Assistance - 205-0224

Legal assistance in traffic accidents.

Towing service: caused by mechanical damage. Maximum annual benefit $150.00.

Medical emergency service: ambulance service and medical attention in case of an automobile accident, 24 hours a day and 365 days of the year.

Basic roadside assistance includes a jump-start, a tire change, or gas delivery (gasoline costs not included): Up to $150.00 per event, three (3) events a year. Maximum annual benefit of $450.00.

Locksmith for loss or misplacement of keys: Up to $150.00 per event, three (3) events a year. Maximum annual benefit of $450.00.

Transportation to your home because of immobilization of the vehicle (starting from kilometer 25): Up to $100.00 per event, three (3) events per year.

Hotel expenses caused by an accident or breakdown of the vehicle (starting from kilometer 25): Up to $100.00 per event, maximum 5 days per event, three (3) events per year.

Also:

• Civil responsibility for replacement car
• Accidental death coverage: $5,000.00 per person, $25,000 per accident
• Extraterritorial coverage in Costa Rica (up to 7 days)
• Alarm discounts

Plan 175: *NEW*

Payment Options:

• Cash
• Credit card or bank discount

Conditions:

• Applies only to personal autos with up to 15 years of use.
• Applies to clients with a good transit record.
• Autos with 11 years or more of usage will need to be previously inspected.

Additional Benefits:

Roadside Assistance - 205-0224

Legal assistance in traffic accidents.

Towing service: caused by mechanical damage. Maximum annual benefit $150.00.

Medical emergency service: ambulance service and medical attention in case of an automobile accident, 24 hours a day and 365 days of the year.

Basic roadside assistance includes a jump-start, a tire change, or gas delivery (gasoline costs not included): Up to $150.00 per event, three (3) events a year. Maximum annual benefit of $450.00.

Locksmith for loss or misplacement of keys: Up to $150.00 per event, three (3) events a year. Maximum annual benefit of $450.00.

Transportation to your home because of immobilization of the vehicle (starting from kilometer 25): Up to $100.00 per event, three (3) events per year.

Hotel expenses caused by an accident or breakdown of the vehicle (starting from kilometer 25): Up to $100.00 per event, maximum 5 days per event, three (3) events per year.

Also:

• Civil responsibility for replacement car
• Accidental death coverage: $5,000.00 per person, $25,000 per accident
• Extraterritorial coverage in Costa Rica (up to 7 days)
• Alarm discounts

To get more information on car insurance or to get a quote, contact our customer service department at forlacol@gmail.com or by phone (507) 6676 5151.

THE DO NOT’S

DO NOT MOVE YOUR CAR FROM THE LOCATION OF THE ACCIDENT
Yes, I know this blocks traffic and it makes no sense whatsoever, but if you move your car you are automatically guilty even if you are not at fault.

DO NOT ACCEPT RESPONSIBILITY FOR THE ACCIDENT

DO NOT MAKE ANY TYPE OF FINANCIAL ARRANGEMENT
It is very common in Panama to hear this “in Panama we each pay for what happen to our own cars.” Or other people will try to ask you for money instead. Unless you are mechanic or work in the auto industry you do not know how much pieces are worth and that settlement you make will not be covered by the insurance company.

DO NOT FORGET TO GET THE OTHER PARTY’S INFO
Write down the name(s), telephone, cedula/passport number, the license plate number, and the car brand. If you carry a camera or a phone camera it’s always a good idea to take pictures. If there are any witnesses talk to them, they will usually be very cooperative.

DO NOT FORGET TO CALL/CONTACT YOUR INSURANCE BROKER
Keep the company or my cel phone (6676-5151) in your cel phone. If it’s after labor hours call the number of your insurance company’s roadside assistance (you should also keep this number in your cel or place the sticker the company gives you in your car). If it is an emergency feel free to contact us.

WHAT TO DO?

If there is no policeman nearby then you have to call the Police for them to send over a policeman who will inspect the scene.

Panama City - 232-5614 or 232-6845
Colon - 441-4197
David, Chiriqui - 776 -8125

Each insurance company has motorized drives which come to the scene of an accident and assist you as well as record and take pictures of what occurred.

• AssaMovil 205-0220
• Mundial Assist 390-9090
• HSBC Seguros 265-8255
• Generali 205-0224
• Internacional de Seguros 265-2881
• InterOceanica 265-8255

If the other party leaves the scene of the accident, call a policeman and report that a “colision y fuga” happened to you. The policeman will write a report which you should keep for the insurance company as well as for your personal records to relieve you from any future legal liability.

IN CASE OF INJURIES, WHAT TO DO?

In case the accident gets messy and there are injuries or if you run over a pedestrian, you have the responsibility to help them. Call your insurance company and let them know what happened. Depending on where you are call an ambulance or take them to the hospital. Your insurance company should send you an ambulance or call directly (all companies use one of the two bellow):

Ambulance:

• SEMM 264-4122
• ALERTA 269-1111, 800-0911

Depending on where you are it’s better to drive the person. Anywhere outside of the main cities, it is better to drive the person to the nearest hospital because ambulances can take a while to arrive.

If it’s your fault and you need to pay for the initial ingression or such, pay for it but first let the insurance company know and keep the receipts. Do not pay for any treatments or surgery. And make sure to take the police report as well.

GOING TO COURT

Thank God your policy covers for legal fees, which means you do not have to go to court! You need to ask for this benefit and there are no costs for it. Contact me (6676-5151) and the insurance company and you will need to take the citation to the insurance company and sign a release of power over to the company’s attorney.

I strongly suggest taking this benefit because courts anywhere are awful, and Panama is no exception to that rule. If you do not go to court and the lawyer doesn’t go for you, you automatically are found guilty and have to pay a fine besides the costs of the other party’s damage.

***Print this article and keep it in your car.

Requirements

1. Passport
2. Authorization from the Direction of Migration and Naturalization
3. Blood type
4. Present a written test about the driving manual and traffic rules
5. Listen to a speech
6. The cost of this permit depends on the validity of the document, if it is for less than 3 months it is $5.50 and for more than 3 months it is $20.00

From Monday to Friday from 8:00 a.m. a 9:30 a.m.

OBSERVATION: If the person has a valid driver’s license from their own country they can present it to the “Autoridad del Transito” and they will obtain an equivalent Panamanian drivers license without the need to present any written or practical tests. To do so you must have some type of visa (work, pensionado, reforestation, etc.)

Article 39. The A.T.T.T. (Transit Department) can give permits or demonstration tags exclusively to the makers or distributors of vehicles which are authorized by the transit department in case of a trial or demonstration period. This period is for five (5) working days. In case an extension is needed, it is the responsibility of the makers or distributors of vehicles to do the paperwork concerning the temporary tag.

HOW DO I GET A NEW TAG

Article 36. The A.T.T.T. will hand out through the “Municipios” the tag and the sticker of the year, after the person presents the following documents:

1. Certificate of vehicle inspection of the year (inspeccion vehicular)
2. Certificate of sole title of the vehicle (registro unico de propiedad vehicular)
3. “Paz y Salvo” from the “Municipio” of the owner (a paper you do not owe anything)
4. “Paz y Salvo” from the A.T.T.T.
5. Payment of the National Permit of Circulation tax at the “Municipio” which is assigned to you

My advice: there are people who do this all for you, and service fees in Panama should not be too high. In case you need information about registration, contact us.

ANUAL INSPECTION

Article 37. All motor vehicles will be subject to an annual check which will be conducted by the A.T.T.T. or authorized agents. These checks will be conducted in times and places determined by the A.T.T.T.

When the annual inspection is conducted after the allotted time established by the A.T.T.T., there will be a ten percent (10%) fee on the tax of the inspection of the vehicle.

WHAT IF MY TAG GETS LOST OR STOLEN?

Article 38. In case the tag is lost the owner is obligated to report it to the Polici­a Tecnica Judicial (the Police) and to the Municipio which you are assigned to. The affected person should ask with a copy of the claim or report for a temporary tag for the time the A.T.T.T. determines. The payment for the duplicate tag must be done at this moment. To be able to obtain a duplicate you must not owe anything to the A.T.T.T. and your Municipio.

Source: DECRETO EJECUTIVO No. 640 (de 27 de diciembre de 2006)

A license will be suspended if a person acquires more than thirty five (35) points in a period of 12 months. Also if:

• If there are severe injuries or death caused by a traffic accident, and the police can establish negligence from part of the driver.
• For driving under the influence of alcohol and/or drugs, which is to be determined by the proper authorities.
• For conducting race or speed competitions (”regattas”) on public roads.
• For a hit and run when a person is involved in a traffic accident.

If you commit any of these infractions a second time, your license will be canceled.

One wonders how much certain tickets cost. Well here is a list of the most common infractions. This also includes how many points you are given on your license.

• Vehicle without title - 1 point - $25
• Vehicle with expired tag - 3 points - $50
• Vehicle without a tag - 3 points - $50
• Not carrying a driver’s license - 2 points - $50
• Allowing an unauthorized person to drive - 5 points - $150
• Refusing to pull over the vehicle when required (fuga) - 6 points -$200
• Talking on the phone when driving - 3 points - $75
• Not wearing a seatbelt - 3 points - $75
• Spilling or throwing garbage on the road - 2 points - $75
• This one if for TAXIS: Refusal to take a passenger - 1 point - $75
• DUI first time depending on alcohol level - 5 points - $150
• DUI second time or for the first time if the alcohol level is very high - Suspension of license, removal of vehicle, and fine.
• Reckless driving - 3 points - $75
• Driving on the wrong side of the road or giving a U turn where is prohibited - 3 points - $75
• Driving on the wrong side of the lane of the road or highway - 2 points - $50
• Driving on the shoulder of the road - 2 points - $50
• Refusal to stop - 5 points - $100
• Passing a red light - 6 points - $100
• Vehicle parked where it’s not allowed - 1 point - $10
• Parking in a handicapped spot (Law 42 of 27/August /99) - 3 points - $50 - Double if the person does it again.
• Speeding - 5 points -$50 - If the person does it again, attendance to a lecture is required.
• Hit and run or property damage - Cancellation of license.

You have 30 days to pay for the ticket or you will receive a an additional fee (10% of the ticket value)

To see a complete list of all traffic infractions please access the A.T.T.T. Webpage (which is in Spanish)