The Impact of VAT on Insurers’ Subrogation Rights and Recovery Mechanisms in Ethiopia: A Comparative Legal Analysis under the 2024 VAT Proclamation

dc.contributor.advisorMisganaw Gashaw
dc.contributor.authorAbreham Kalay
dc.date.accessioned2026-05-22T12:01:46Z
dc.date.available2026-05-22T12:01:46Z
dc.date.issued2025-07-01
dc.description.abstractSubrogation allows the insurance company to recover money paid for settlements of claims from liable third party for that loos and maintain financial stability and long-term solvency. The importance of surrogation towards maintaining the efficiency of risk poling process, controlling claims cost and affordability of premium price in the development of insurance markets like Ethiopia has essential. There are controversies after that the Ethiopian VAT Proclamation, No. 1341/2024 has made a new clause under Art 40(6) that totally incorporate surrogation recoveries in scope of taxable supply without clear legal rules that protect the representative capacity of insurers and addressing legal remedy nature of subrogation recoveries. This research has examined these controversies and analyzes the legal and practical implication of VAT on insurer’s subrogation right. This research finds out the current legal framework of VAT creates ambiguity, administrative inconsistencies as well as practical challenges. Therefore, any legal reform should be made with clear legal framework, inclusive stakeholder engagement and effective strategies to protect a right balance between revenue collection and log-term development of insurance industry
dc.identifier.urihttps://etd.aau.edu.et/handle/123456789/8110
dc.language.isoen
dc.publisherAddis Ababa University
dc.subjectSubrogation allows the insurance company to recover money paid for settlements of claims from liable third party for that loos and maintain financial stability and long-term solvency
dc.titleThe Impact of VAT on Insurers’ Subrogation Rights and Recovery Mechanisms in Ethiopia: A Comparative Legal Analysis under the 2024 VAT Proclamation
dc.typeThesis

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