Guatemala scraps plan for compulsory car insurance after protests

Guatemalan motorists blockaded streets and clashed with police after the new rule was announced.

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Under the new law, owners of cars, lorries, buses and motorbikes would have been required to take out insurance to cover harm caused to others in the event of an accident.

President Arévalo argued that the new rule was necessary to compensate victims of traffic accidents, but many in Guatemala - where an estimated 55% live in poverty - said they would not be able to afford the extra cost.

Thousands blocked major roads and clashed with police in the days since the decree was made public on Monday.