The reason for this measure, is to guarantee that every person will have access to legal counselling. Like illness legal conflicts are hard to predict, one could be (wrongly) charged for a crime or getting into a dispute with one’s neighbors at any time. And mandatory liability insurance will guarantee that people will receive compensation in case of civil wrongs.
In principle insurance companies will be free to set premium, though there will be some provisions to protect person with lower incomes.
Per Mordan law, only mutual insurance companies will be allowed to sell insurance policies.