Madam Speaker, section 88 of the Insurance Act 2005 provides for the establishment of the Insurance Industry Compensation Fund (IICF) and for the fund to be organised into different sub-funds. In this respect, the Hit and Run Sub Fund has been set up under the Insurance Industry Compensation Fund Regulation 2015 with effect from 01 January 2016. Madam Speaker, I am informed that as of 13 December 2024, the total amount of funds available under the Hit and Run Sub Fund was Rs357,209,827. The total amount of funds comprises contributions received from insurance companies, ranging from Rs25 to a maximum of Rs200 per insurance policy of vehicle as per the First Schedule of the Insurance Industry Compensation Fund Regulation 2015 and interests received. With regard to part (a) of the question, in the year 2023-2024, the IICF has received 34 claims, out of which 26 were approved for compensation, five were rejected and three are under consideration. The total amount disbursed for payment to the victims of hit-and-run accidents for the year is Rs3,100,000. With regard to part (b) of the question, expenses incurred by the IICF, which involve administrative, salaries, allowances, rental and board fees, the fund is managed by a management committee, and it has a technical committee, it amounts to Rs5,588,431. So, Rs3 m. paid to victims, and Rs5.5 m. incurred in expenses.

61 I would like to state to the House that clearly there is an issue with this fund, Madam Speaker. At a time when our households, up and down the country, are struggling to make ends meet, where household bills are ever-increasing, including car insurance premiums, the management of this fund and the functioning of this fund raise serious questions. There are funds of Rs357 m. sitting in this fund, but only Rs3 m. disbursed to victims and Rs5.5 m. in expenses. Secondly, I was appalled to learn that the Rs357 m. is sitting in current accounts with zero interest rates. Can you imagine the amount of money? Just a back-of-envelope calculation at 3% interest gives you 10 million in a year. People have put that money in zero- rated current accounts! So, given the above concerns, I will propose to review the functioning and the fundamentals of the IICF, Madam Speaker. Thank you.

Thank you, hon. Minister. Yes!

Madam Speaker, now that we know that there were some malpractices at the Ministry in the past, will the hon. Minister be able to take the appropriate measures to restore those funds in an appropriate deposit account for the benefit of the House?

Madam Speaker, there is a board of the FSC happening today, and I have already spoken to the Permanent Secretary of the Ministry to raise this at the level of the board because this fund sits under the FSC Board.

Very good! Thank you. Hon. Third Member for Rivière des Anguilles and Souillac! MAURITIUS DIGITAL HUB – INDUSTRIAL REVOLUTION 5.0