CAT NAT insurance

What is the Catastrophic Event Coverage Scheme?

The purpose of the Catastrophic Event Coverage Scheme is to compensate the victims of direct damage occurring in Morocco and having as its determining origin the action of abnormal intensity of a natural agent or the violent action of Man.

This Scheme, established by Law 110-14, comprises two systems:

1. An insurance system that benefits policyholders (natural or legal persons) with insurance contracts as provided for in Article 64-1 of the Insurance Code;
2. A solidarity-based system that benefits individuals who have no coverage or benefitting from a coverage that grants them a lower benefit than what they would have received from the Solidarity Fund (FSEC) if they had no coverage.

What is a Catastrophic Event?

Catastrophic events can have two origins:

1. Violent human action which includes:
   1. Acts of terrorism;
   2. The direct consequences of the occurrence of riots or civil commotion, where the effects are of serious intensity for the community.
2. The abnormal action of the following natural elements:
   1. Floods;
   2. Flooding;
   3. Earthquakes;
   4. Tsunamis.

The following events are not considered catastrophic events:

1. The use of chemical, biological, bacteriological, radioactive or nuclear agents or weapons;
2. Civil war, foreign war or similar acts of hostility;
3. Acts of cybercrime.

How Can I Get a Compensation for the Consequences of Catastrophic Events?

The benefit of indemnities under the guarantee against the consequences of catastrophic events is subject to the publication in the Official Bulletin of an administrative act of the Head of Government declaring the event in question to be a catastrophic event. The publication of this act may take place within three (3) months from the date of occurrence of the event.

After the publication of the said administrative act, the Insured is required to notify the Insurer or its representative of the occurrence of any event that may entail the latter's cover as soon as it becomes aware of it and at the latest within twenty (20) days of the said occurrence, except where this time limit is extended by the Governmental Authority in charge of finance.

Which Insurance Contracts Are Compulsory to Cover the Consequences of Catastrophic Events?

For the insurance component, the following insurance contracts must and are deemed to include compulsory cover against the consequences of catastrophic events:

• Insurance contracts guaranteeing damage to property (e.g. multi-risk home, multi-risk business, vehicle damage);
• Insurance contracts covering motor vehicle liability;
• Insurance contracts covering civil liability for bodily injury caused to third parties, other than the Insured's Employees, on the premises covered by the contract.

In accordance with Article 64-1 of the Insurance Code, this insurance obligation against the consequences of catastrophic events does not apply to aviation insurance or to insurance covering damage to unharvested crops, agricultural crops and plantations.

What is Covered by the Guarantee Against the Consequences of Catastrophic Events?

• Under Insurance Contracts Covering Property Damage:

• Damage directly caused by a catastrophic event to insured property.
• Under Contracts Covering Car Vehicle Liability:
• bodily injury suffered by the driver and any person carried, and their dependants as a result of their death, where such injury is the direct result of a catastrophic event affecting the Insured vehicle;
• bodily injury suffered by the natural owner of the vehicle, their (his/her) spouse and dependent children, and their dependants as a result of their death, provided that the said injury is the direct result of a catastrophic event;
• damage directly caused by a catastrophic event to the Insured vehicle.
• Under insurance contracts covering civil liability for bodily injury caused to third parties, other than the Insured's Employees, on the premises covered by the contract:
• bodily injury suffered by persons other than the Insured's Employees who are on the premises provided for in the insurance contract, as well as injury suffered by their dependants as a result of their death, where the said injury is the direct result of a catastrophic event.

Rights and Obligations of the Insured?

We invite you to refer to the "Insurance Guide" and the "CAT Insurance Guide" published on the ACAPS portal.

What does the Authority do?

Within the framework of the powers vested in it by Law No. 64-12 establishing the Insurance and Social Security Supervisory Authority, the latter institution ensures that any and all insurance products offered to consumers are understandable, balanced, useful and that they comply with the regulations in force. It also shall monitor the reliability of the information provided to policyholders and ensure the fair treatment of policyholders by Insurers.

Legal/Judicial Remedies in Case of Dispute with Your Insurer?

In accordance with Article 7 of Law No. 64-12, the Insurance and Social Security Supervisory Authority has the power to investigate complaints from customers of insurance companies and the intermediaries (brokers) thereof. Nevertheless, it is recommended that you first contact the broker or Insurer against whom your complaint is directed. If the dispute persists after this step, you can contact ACAPS by one of the means at your disposal. The Authority shall then examine your complaint and take the most appropriate action, in accordance with the legal and regulatory provisions and within the scope of its powers, to settle the dispute.