What is insurance?
The insurance contract is the agreement under which the insurer, in exchange for the payment of a premium, undertakes to provide a service stipulated in the contract in the event of the occurrence of an event is uncertain that the insured has an interest not to see.
The insurance is based on the concept of pooling risks, through the pooling of “contributions” financials of the insured.
Three elements are necessary for the formation of the insurance contract :
- Premium: the premium is The amount owed by the purchaser of an insurance contract in consideration of the guarantees granted by the insurer ;
- Service: this is the execution, by the insurer, of its guarantee ;
- Risk: the accidental event against the consequences of which it secures. It is the object of the insurance contract.
In the framework of this mechanism, four parties are involved :
- The insured: a person or entity on which or on the interests of which is based insurance ;
- The subscriber: the person or entity who contracts insurance for its own account or for the account of others and who are committed to the insurer for the payment of the premium ;
- The insurer: the Company is licensed to conduct insurance operations ;
- The beneficiary (if applicable): a natural or legal person designated by the subscriber who receives the principal or the rent payable by the insurer.
Example: auto insurance
As a car owner, you are exposed to several risks such as accidents, theft, breakdown, fire, etc…
The financial consequences of these risks can be transferred by you, the insured, and an insurer by signing a contract of insurance that covers the risk and is subject to the payment of an insurance premium. Thus, when these risks occur, they can cause damage to a third party, including your companions, engaging your civil liability, or driving your own car or the driver.
The insurer then intervenes in order to compensate for these potential damages in the framework of the warranty RC car (mandatory) in the first case and, in the second, in respect of additional guarantees (optional) that you would have purchased from your insurer. This is the benefit of the insurer.
Insurance is a means of reducing the vulnerability of people to the hazards of life. It serves to cover yourself, cover its property, as well as the damage engaging its responsibility.
Insurance can also play a role in savings in particular, in the framework of life insurance and capitalization, guaranteeing a pension or capital to the beneficiary in exchange for the premiums paid. Moreover, in order to reduce the vulnerability of individuals, in particular in the face of the risks they may cause to others, the legislature has considered it necessary obligation insurance for certain risks (RC car for example). A person subject must, therefore, take out the right insurance to meet this obligation.
What is policy insurance?
The insurance policy is the document that represents the insurance contract linking the insurer and the insured, and the material evidence and legal agreement between these two parties. In particular, we find the general and specific conditions that will govern the contract, which you should read carefully.
The general conditions are common to all policy holders of an insurance contract. They define, in particular, things and persons insured, the events that are covered, the insurance exclusions, conditions of coverage, the obligations of the parties, and the circumstances and conditions for the termination or suspension of the effects of guarantees. The specific conditions that indicate the information and clauses specific to each insured, in particular the characteristics of the insured risk, the duration, and effect of guarantees, the amount of the premium, the coverage terms, their ceilings as well as the deductible, if applicable.
The specific conditions you also allow, in some cases, expand or limit coverage based on your needs and your means (redeem an exclusion, for example, or dismiss a guarantee).
To subscribe to Your insurance contract?
To subscribe to an insurance contract, you need to contact one of the following entities :
- The insurance intermediary, for any type of insurance, may be :
- An agent, who is the agent of the insurance company ;
- A brokerage company is the agent of the client to the insurance companies.
- The insurance business presents its operations through a direct office ;
- Banks specifically approved for this purpose as well as Barid Al Maghrib, for the insurance of persons, assistance, and credit insurance ;
- The associations of micro-credit and finance companies can also present certain insurance transactions within the limits of the insurance and insurance against fire and theft incurred by their customers.
What are the points on which I must be vigilant during the subscription of the insurance contract?
You will need to be especially careful of the following points :
- Declaration of the insured: you must pay attention to the accuracy of the information collected by the insurer, as well as their transcription accuracy on the contract.
- Any misstatement by you, even unintentionally, can be the cause of the loss of part or all of your rights.
- Scope of coverage: You will need to take note of the extent of safeguards to ensure that the contract meets your coverage needs and is suitable to your risk profile. There are several elements to take into consideration in the framework of the scope of the warranty.
- The object of the warranty: definition of events, goods, and people covered ;
- Exclusions: what are the circumstances in which the insured is not covered? The exclusion clauses must be formal, and limited and are written in bold characters ;
- Clauses of forfeiture: it is the loss of the right to indemnity in respect of a loss as a result of non-compliance by the insured of any of its obligations ;
- Ceiling warranty: The amount that is the maximum of the commitment of the insurer. Any excess of the ceiling will therefore be borne by you ;
- The effect of warranties: you will need to pay attention to the date from which the warranty starts to play. In the absence of any indication to the contrary, the contract shall take effect upon its formation ;
- Franchise: This is the amount that you will have to pay in the event of a disaster and that is not indemnified by the insurer. There must, therefore, inform you of the amount or its world determination;
- Duration of coverage: You will need to pay attention to the duration of the contract, and discern if it is time farm (ceases to have effect at the expiration date specified in the contract) or tacit agreement (automatically renewed from one period to another if none of the parties expresses its willingness to break in the conditions provided for this purpose) ;
- Conditions of execution: Be sure to read, at the level of your insurance policy, the terms and conditions laid down by certain clauses in order to qualify for the guarantee.
In sum, you need to be aware of all the clauses written in bold characters, that tell us generally about the case of nullity, revocation, non-insurance, and exclusions, as well as those mentioned at the top of the signature
In what cases I can cancel my insurance contract?
The contract shall terminate on the maturity date provided, but in some cases, it can be terminated prematurely :
1 – The cancellation at maturity
- When your insurance contract comes to an end, it is possible that it is automatically renewed (tacit agreement). To put an end to the renewal of such an agreement, you must terminate upon notice of termination provided for in the contract.
- When the duration of the contract exceeds one year, you have the right to withdraw at the expiration of one year from the effective date of the contract, subject to informing the insurer with notice at least equal to the minimum set by the contract. The period of notice shall in all cases between 30 and 90 days.
- When the duration of the contract exceeds one year, it must be remembered in very apparent characters by a statement appearing above your signature. In the absence of such mention, you can terminate the contract each year on the anniversary date of its taking effect by giving 30 days.
2 – termination prior to maturity
In the case of the disappearance of special circumstances that increase risk, such as the decrease of the sum insured, you have the right to ask for a declaration against a receipt or by registered letter to your insurer for a downward revision of the premium.
If the insurer refuses to revise the premium or proposes a reduction that does not suit you, you have the right to request the termination of the contract. The cancellation will take effect within twenty days of the request.
If your insurer cancels your contract after a loss, you have the option to terminate all other agreements that you have with the insurer within the period of one month following notification of the termination of the contract. The termination shall take effect one month after notification to the insurer.
The insurance contract can be terminated at the initiative of the insurer and in what cases?
The insurer may terminate the contract in the following cases :
- Non-payment: In the event of non-payment of the premium, the insurer may cancel your contract, subject to the provisions of the procedure provided for by article 21 of the insurance code.
- Disaster: disaster and where the contract so provides, the insurer may terminate your contract. The termination will only take effect at the end of a period of one month from the notification that you will be made. This right is not applicable to the compulsory insurance of motor vehicle liability. The contract may only be terminated after a disaster when the contract provides.
- Increase in risk: as a result of an increase in risk, for example, the use of the vehicle for business purposes, then, that it is insured for private journeys, the insurer may terminate the contract either directly or after your refusal of acceptance of the premium increase provided for this purpose. Such termination shall take effect ten days after the notification that you will be made.
You must declare any aggravation of the risk to the insurer by registered letter within 8 days from the time you became aware of it and in advance once the risks have been exacerbated by your facts.
What is the fate of my insurance contract in case of the sale of my vehicle?
In case of the sale of your vehicle, the contract is automatically terminated on the date of registration of the vehicle in the name of the new owner. The termination is therefore automatic unless the warranty has been transferred to another vehicle owned on the agreement of both parties prior to the conclusion of the sale.
In the event of a disaster, what should I do?
When a disaster occurs, you must meet a number of legal and contractual obligations :
- You must take immediately all the necessary measures to save the secured assets and to limit the extent of the damage. In addition, the claim must be reported to the competent authorities if it is necessary to do so.
- You must report the claim to your insurer within the time provided for in your contract and which shall not be less than :
- 5 days of the occurrence of any disaster likely to result in the warranty of the insurer ;
- 48 h for the insurance against the death of livestock ;
- Period contract for insurance against the volume
No legal form is required to make a claim unless your contract provides it. Nevertheless, it is always useful to keep proof of his statement, a registered letter with acknowledgment of receipt or a statement against a receipt is, therefore, preferable and highly recommended.
In life insurance, no time to claim the compensation or guaranteed amount is set by law. However, limitation periods are provided.
What is the role of the guarantee fund for traffic accidents?
The Guarantee Fund for traffic accidents is responsible for the repair of partial or total damaged body caused by a motor vehicle not tied to a railroad, or by its trailers or semi-trailers, in the case where the people responsible for these accidents are unknown or uninsured and unable to compensate the victims because of their insolvency.
What is the required insurance?
- The motor third-party liability insurance ;
- The insurance hunting ;
- Decennial liability insurance ;
- Workplace accident insurance;
- Insurance risk project ;
- The guarantee against catastrophic risks ;
- The civil liability insurance intermediaries.
What is the effective date of the contract?
The effective date is the date of the taking effect of the guarantees. It may be different from the date of signature of the contract.
Important: Insurance of motor third-party liability is mandatory, it is essential to check the effective date of the contract to avoid periods without insurance.
The business of insurance and reinsurance refuses to insure my car. What can I do?
Any person subject to compulsory insurance of civil liability motor vehicle sees a refusal on the part of an insurance undertaking and reinsurance licensed to practice in the insurance operations of the risks automobiles, may apply to the Authority the amount of the premium at which the business of insurance and reinsurance undertakings concerned is required to ensure that the risk has been proposed.
What is the Coefficient of Reduction Increase (CRM)?
This system acts on the insurance premium in the middle of a coefficient. The bonus is reduced by 10% if the insured had not caused any accident involving or is likely to commit fully or partially his responsibility during a coverage period of 24 consecutive months prior to the subscription or the renewal of the contract (a single interruption of a duration of fewer than 30 days). Conversely, if the insured has caused an accident involving totally or partially his responsibility during the 12 months prior to the subscription or the renewal of his contract, his insurance premium is increased to 20% for accident hardware and 30% for a personal injury accident. These rates are, respectively, 15% and 20%, if the driver operates a vehicle intended for the public transport of passengers or if it is a subscriber to a civil liability mechanic.
All claims are reported in a system that is shared by all the companies and supervised by the supervisory Authority of insurance and social welfare (ACAPS). An insured cannot escape the penalty by trying to subscribe to another person. It should be noted that insurers have tools to assess the severity of the damage and decide on a coefficient.