This study focusses on motor insurance,possibly the most important type of insurance sold indeveloping countries. In most countries, motor third-partyliability (MTPL) insurance is compulsory in order to protectthe public. World Bank studies in Africa, Central Asia, andEurope have shown that motor insurance premiums represent atleast 30 percent of all non-life premium income. MTPLinsurance has been introduced in the formerly centrallyplanned economies only in the past decade, and it is poorlyunderstood. Motorists are inclined to view it as a form oftax that they are at liberty to evade, rather than as aprotection against their personal liability, a concept thatis not familiar to the general public. This report discussesthe high motor accident casualty rate in developingcountries, and predicts that it will increase dramaticallyby 2020. It focuses specific aspects of MTPL systems, withreference to the experiences gained in both developed anddeveloping markets. The report examines existing practices,and discusses some aspects of the MTPL system, referringespecially to the experiences of Brazil, which sought tocorrect uninsured vehicle rates that were as high as 60percent or more. The study concludes with results from theexperiences of the countries studies, and outlines someimportant features to guide future work in those countries.It underlines the importance of MTPL insurance for roadsafety, personal responsibility, and secure traffic systemsin developing countries.