Morocco Expands Disaster Insurance Coverage with International Policy

According to experts, international insurance will be activated when the credits of the Solidarity Fund are not enough to compensate all the victims, mainly in the event of a major catastrophic event.

Thus, from 2020, the government will have established double insurance. In addition to international insurance, the Solidarity Fund will come into force in the coming days as the first credits will be available with the entry into force of the new Finance Act, reports Aujourd’hui le Maroc.

In practical terms, the 2020 Finance Act had allocated a budget of 300 million dirhams to the Solidarity Fund against catastrophic events. The Fund will be financed in particular by the famous parafiscal tax called the tax of solidarity against catastrophic events. The latter had been criticized on social networks before the officials provided clarifications, recalls the same source.

Last September, the government had adopted the draft decree relating to the introduction of a 1% parafiscal tax for the coverage of catastrophic events. According to experts, the average amount of this tax is around 50 DH per annual contract.