Morocco Mandates Insurance for Construction Projects to Boost Safety

This measure "stems from the publication of two ministerial decrees in the Official Bulletin. The first concerns insurance related to construction, while the second establishes the standard general conditions applicable to ARC and DCL contracts. These texts, developed on the proposal of the ACAPS and in accordance with the Insurance Code, define the main parameters of these insurances, in particular the coverage limits, deductibles, exclusions and applicable general conditions," writes Challenge.

From now on, project owners are required to take out "All Risks Construction" insurance for the duration of the work. This insurance includes "two essential guarantees. The first is the Damage Guarantee, covering material damage affecting the construction, as well as the materials and equipment used on the site. The second is the Civil Liability Guarantee, protecting against the financial consequences of damage caused to third parties during the execution of the work," the magazine informs.

As for "Decennial Civil Liability", it is "imposed on professionals in the sector, such as architects, engineers and contractors, who are now required to take out this insurance," "takes effect after the acceptance of the work and remains valid for ten years," the publication points out, specifying that this insurance "covers damage compromising the solidity of the building, in particular in case of collapse due to construction defects, the use of defective materials or geological problems".

The ARC and DCL insurances must be taken out for "various types of constructions", such as "industrial, commercial, hotel, sports or accommodation buildings, as well as residences exceeding three floors or with an area greater than 800 m²," it is detailed, adding that "the obtaining of the occupancy permit or the certificate of conformity will now be conditional on the presentation of a valid DCL insurance certificate".

For their part, the Insurance and Social Welfare Control Authority (ACAPS) and the Moroccan Federation of Insurance (FMA) are committed "to ensuring the application of these new requirements in order to guarantee enhanced protection for policyholders and beneficiaries of contracts," the magazine informs, specifying that "this initiative represents an essential step in the regulation of the construction sector, aimed at protecting both investors and workers and consumers, while strengthening confidence in real estate projects in Morocco".