Birhanu, Elias (PhD)Tesfaye, Shimelis2018-07-172023-11-042018-07-172023-11-042015-05http://etd.aau.edu.et/handle/123456789/8826The economic and social damage due to motor vehicle is escalating alarmingly. Among others, one of the measure took by the government of Ethiopia is the recent development of legislation “Vehicle Insurance Against Third Party Risks Proclamation”, with the aim of laying down a mechanism to alleviate economic loss as a result of road accident. The implementation of this legislation will affect the insurance industry. In the literature, the law has been practiced for several decades in most countries, but imposes significant impact on insurers’ performance. There are two views about its implementation, the first one is compulsory insurance is a social insurance and the government control the entire activities; premium tariff, claim settlement process, policy terms and conditions and the whole enforcement activities in order to achieve its purpose. The other counter argues and advocates private insurer’s involvement in compulsory insurance implementation under minimum government control. Despite the law enforced recently in Ethiopia, this paper try to assess the implementation of CTP motor insurance and analyze stakeholder’s level of awareness towards CTP insurance. The study considers both primary and secondary data in order to examine implementation of the legislation in achieving its objective and analyze the attitude and perceptions of stakeholders; insurance officers and CTP insurance policyholders. To address the research problem, both quantitative and qualitative research approaches were used. The research findings indicate CTP insurance has positive result to insurers and IFAA. However, fairness of premium tariffs and uniform claim settlement were a challenge and awareness of parties involved in the process had wide gap. IFAA performance to utilize the fund as planned also very low. In general CTP proclamation enforcement failed to address the intended result and lack of awareness had considerable impact on policy implementation. Thus, both the government and insurance association should actively participate in the awareness creation and cooperation between parties involved in the implementation process will address the problemsen-USMotor insuranceThesis