Morocco: Bill to set up Nat CAT insurance scheme
Source: Middle East Insurance Review | Apr 2016
Morocco's Governing Council, headed by the Prime Minister, has adopted a Bill to establish a Nat CAT insurance scheme, aimed at installing an effective compensation mechanism for victims of disasters.
Presented by the Minister of Economy and Finance, Mr Mohamed Boussaid, the Bill proposes a mixed system of compensation for victims of catastrophic events. It covers those who buy disaster insurance and those who have no such cover.
The Bill provides for the creation of a national register of victims of such events, to determine the impact of a catastrophic event as well as victims eligible to receive compensation, reported the Today newspaper.
A committee will also be created to monitor the plan and decide whether to declare a disaster a catastrophe. The members of this committee and the rules of referral and operation will be determined by regulations. Also included is an expert committee to assess damage to property.
It is envisaged that a solidarity fund will be set up to compensate victims of catastrophic events who have no insurance coverage. It will be administered by a board of directors chaired by the head of government. The resources of this fund shall consist of contributions from the insureds, taxes on insurance contracts, and annual contributions from insurance and reinsurance companies. The contributions are to cover the management costs of the fund and an initial endowment to the fund.
Those eligible for benefits granted by the solidarity fund are people who suffer physical harm from a catastrophic event, including those involved in rescue and relief efforts, or their dependents in the event of death or disappearance. Also included are members of a household whose principal residence is rendered uninhabitable by the disaster. In order to receive benefits, the victim must first be entered in the national registry.