In news that might sound like a late-night expat joke over beers in Casco Viejo: Panama is proposing a law that would compensate drivers up to $10,000 for damages caused by potholes, missing manhole covers, and crumbling roads.
Yes, you read that right. The infamous “Panama pothole” – that longtime nemesis of your tires, suspension, and sanity – may soon come with a payout.
The proposal, championed by Deputy José Pérez Barboni of the Movimiento Otro Camino (MOCA), seeks to formally hold the government or relevant companies accountable for road negligence. The law would cover damage from everything from sunken asphalt and lack of streetlights to the ever-mysterious missing sewer covers that seem to vanish overnight.
While the bill is still under discussion in the National Assembly, it’s already creating a buzz. Barboni made a point that resonates with many: “Let’s keep roads in good condition so we don’t have to compensate anyone – and more importantly, to protect lives.”
No official numbers exist on how many accidents or vehicle repairs result from poor roads, but any seasoned expat in areas like Boquete or the Azuero Peninsula knows the drill – swerving like you’re dodging craters on the moon is just part of the commute.
The law, if approved, would allow anyone impacted by poor infrastructure to file a claim with the National Public Services Authority. To qualify, victims would need to prove the damage, likely with evidence from authorized auto repair shops. Payments could take up to 18 months.
The law won’t cover cases of “force majeure” like floods or earthquakes – but if a random exposed pipe took out your axle, you may be in luck.
And yes, Panama does have a “Programa Tapa Huecos” (Pothole Cover Program). But until those holes are actually covered, maybe start taking photos every time you hit one – you might just have a case.
Written July 18, 2025
