Morocco: Details of national disaster insurance scheme finalised
Source: Middle East Insurance Review | Dec 2017
A national disaster insurance scheme will soon be implemented in Morocco. The implementing text of the law establishing the scheme for covering these risks has been finalised and submitted to the Ministry of the Economy and Finance.
Under the scheme, insured persons will soon have to pay a premium on their non-life insurance contracts to cover the risks of disasters, reported La Vie Eco, citing a source within the Insurance and Social Security Supervisory Authority (ACAPS). The extra premiums to be levied on the policies (all types of risks combined) would be 4% excluding taxes.
In this connection, decrees by ACAPS and the Ministry of Economy and Finance will soon be adopted.
The first decree, by ACAPS, will concern the tariff rates for the CAT insurance scheme. The technical and insurance frameworks to fix the pricing are based on disaster events that have taken place in Morocco since 1980.
The second decree, also by ACAPS, will outline the extent of the insurance coverage for Nat CAT events, as well as deductibles and indemnity limits. It will also set a ceiling on compensation for natural and man-made CATs.
The third decree, by the Ministry, will provide for the establishment of a pool against CAT events, to compensate victims who are not covered by an insurance policy and to provide financial assistance for insurance operations relating to compulsory cover against the consequences of CAT events.
This decree will also direct that a commission of appeal be established, chaired by a magistrate and empowered to rule on any dispute between the disaster insurance pool and victims of a CAT event. M