Insurance against the effects of natural disasters
What is insurance against the effects of natural disasters?
Who is affected by this insurance obligation?
What are the guaranteed events?
What goods are covered by this insurance?
What damages are excluded?
What are the mandatory clauses in the contract?
What is the compensation procedure?
What penalties for lack of insurance?
What are the means of monitoring compliance with this obligation?
How is a state of natural disaster declared and when?
How to take out this insurance and at what price?
01. What is insurance against the effects of natural disasters?
It is a compulsory economic type insurance product.
The insurance obligation is established by article 1 of ordinance 03-12 of 08/26/2003 (JORA n ° 52 of 2003) relating to the obligation to insure natural disasters and compensation. of victims and its application texts: executive decrees 04-268 to 04-272 (JORA n ° 55 of 2004).
The insurance period cannot be less than one year (Article 09 DE 04-269 OJ n ° 55).
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02. Who is affected by this insurance obligation?
Any owner (natural or legal person, other than the State) of a constructed property located in Algeria: Article 01 paragraph 01 Oce 03/12.
Any natural or legal person exercising an industrial and / or commercial activity: Article 01 paragraph 02 Oce 03/12.
Approved insurance companies which are required to provide coverage to persons subject to the obligation of insurance against natural disasters: Article 05 paragraph 01 Oce. 03/12.
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03. What are the guaranteed events?
Four events are covered by this insurance (Article 02 of DE 04-268 (OJ, n ° 55)):
Earthquakes
Floods and mudslides
Storms and strong winds
Ground movements.
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04. What goods are covered by this insurance?
Being insurance of property and not of persons, this insurance will cover direct damage caused to:
real estate constructed in Algeria (buildings, individual buildings, buildings for professional use). Content is not supported.
industrial and commercial installations including their contents, i.e. immovable property as well as the equipment, materials, goods and other property contained.
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05. Which damages are excluded?
Under the provisions of Article 10 of Ordinance 95-07, the following are excluded from the scope of natural disaster insurance:
Non-harvested crops, crops, soils and live livestock outside the building;
The bodies of air and sea vehicles as well as the goods transported.
Other Exclusions:
Works under construction.
Buildings carried out after 2003 and industrial and commercial activities carried out after 2003 in violation of the regulations in force.
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06. What are the mandatory clauses in the contract?
The insurance contract against the effects of natural catastrophes must necessarily include seven written clauses: article 2-DE N ° 04/270
Clause 1: object of the CAT-NAT guarantee
The purpose of this insurance is to guarantee the insured, financial compensation for direct material damage caused to all of his property guaranteed in the contract and resulting from a natural disaster.
Clause 2: Scope of the guarantee
The guarantee covers the cost of direct material damage suffered by the insured goods, up to the limit of:
80% of the insured capital, for real estate for residential purposes: article 07 paragraph 01 of 04-269 (OJ n ° 55)
50% of the insured capital for industrial or commercial installations: article 07 paragraph 02 of 04-269 (OJ n ° 55)
In addition, the costs of damage will be fixed according to an expert's opinion, after deduction of obsolescence and residual values.
Clause 3: Involvement of the guarantee
The guarantee can only be brought into play after publication in the Official Journal of the People's Democratic Republic of Algeria, of the regulatory text declaring the state of natural disaster.
Clause 4: Deductible
The insured must bear, as a deductible, a portion of the damage equal to;
2% with a minimum of DA 30,000.00 for real estate for residential purposes. Article 07 of the order of the MINISTRY OF FINANCE of October 31, 2004 setting the pricing parameters, tariffs and deductibles applicable in terms of insurance against the effects of natural disasters.
10% for industrial or commercial installations.
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