Costa Rica Scam; Mandatory Car Insurance to Be Paid to CCSS Social Security Fund

Costa Rica News – This new fee seems like a really bad idea to me. With the new traffic law now in place, now the Social Security Fund (CCSS) will  be compensated by the compulsory motor insurance (SOA) for taking care of people injured in accidents.

This policy covers medical expenses and payments to victims or permanent total disability. It also includes other costs incurred in a traffic accident and compensation to beneficiaries in case of death.

The new law allows the Caja to request that their costs can be incorporated into the calculation of the policy. This, in turn, could impact the future cost of the marchamo, it must cover the entire amount. So basically it is allowing one part of the Costa Rica government to bill another part of the Costa Rican government and pass those costs onto the Costa Rican population.  Anyone else see a problem there?

“The CCSS has priority in the payment of cash benefits and medical services, including medical services provided in the immediate attention of the accident,” says the law.

The SOA is the second most important component of the marchamo, which also constitute the tax vehicle ownership tax, Road Safety Council (Cosevi), municipalities and timbre of wildlife, among others.

Is it me or does this just seems like a tax that is just being added because the Costa Rican government hopes that no one sees that this is already being taken.

Let’s go through the details.

Liability insurance is mandatory for vehicles in Costa Rica and must be paid to INS.  This covers damages to other people, their cars, or property. So this would mean that in a car accident, that your medical expenses should already be covered by INS, doesn’t it?

So basically it is allowing the Caja to bill the INS for work and pass the charges onto those paying marchamo, which is everyone. There will be no paper trail, invoices will be falsified, and money will be made at every level and pocketed.  But do not worry if they get caught they will only get a three month paid suspension.

This is the biggest scam ever on a government level.