Mr. Mohammed Boussaid, Minister of Economy and Finance, presented at the Council of Government, Friday, March 4th, 2016, the bill 110-14 establishing a coverage scheme of catastrophic events and amending and supplementing the law 17-99 on the insurance code.
“This project’s objective is to establish effective and permanent compensation mechanisms of all kinds of disasters, since the urgent and unorganized solidarity initiatives have shown their limits to deal with catastrophic events. This necessitates an upstream organization to ensure coverage and compensation paid to victims. The aforementioned bill calls for the setting up of a dual protection program to compensate victims of disasters, combining an insurance scheme for the benefit of individuals with an insurance contract and a solidarity scheme for persons without coverage”, the Minister added.
The bill also aims to allow all persons in the country to benefit from a minimum threshold for compensation for the possible damages in case of catastrophic situation that can result in physical injury or loss of housing. Its objective is also to provide a coverage of problems which arise from disasters and to which persons with an assurance contract may be exposed.
The bill, setting up an insurance scheme of catastrophic events, includes 71 items, divided into three chapters. The main focus of the first one is the provisions on the establishment of a coverage scheme of catastrophic events, a monitoring committee of the aforementioned events and a dedicated solidarity fund for disasters while fixing ways of its management. The second area relates to the provisions amending and supplementing the Law 17-99 on the insurance code with the aim to introduce the requirement to have insurance cover against catastrophic events. The third chapter examines various provisions.