One would have expected insurance companies to jump for joy when the parliament passed the 2012 Traffic Law, extending the current third party liability (TPL) for bodily injury to also cover material damage. This would undoubtedly give insurance companies the chance to increase their market in compulsory motor insurance. At Q4 2013, turnover for motor was $338.7 million with compulsory insurance making up just $56 million, equivalent to16.5 percent, according to ACAL (Association des Compagnies d’Assurances au Liban)’s quarterly report. Total premiums for motor insurance made up the third largest market share in 2013 at 23.9 percent. The new law would increase the market share of compulsory motor insurance, but would also add an unknown amount of risk. But compulsory motor insurance for TPL covering material damage, while enacted in law, has not been extended to practice. The implementation of the Traffic Law awaits a series of decrees from the