Source: MEIR eDaily
Morocco’s Governing Council, which is headed by the Prime Minister, has adopted a Bill to establish a natural catastrophe 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 which amends the Insurance Code 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 census register of victims of catastrophic events. The objective is to determine the impact of a catastrophic event as well as victims eligible to receive compensation, reported the Today newspaper.
Monitoring Committee
A monitoring committee will also be created, to be responsible for monitoring the plan and to make decisions on whether to declare a disaster a catastrophic event. The composition 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.
Solidarity fund for victims without cover
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 insured, 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 case 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.
