motor vehicles damaged during the passage of cyclone Belal, she will, for the benefit of the House, obtain f…
(No. B/81) Mr M. Seeburn (Second Member for Vieux Grand Port & Rose Belle) asked the Minister of Financial Services and Economic Planning whether, in regard to motor vehicles damaged during the passage of cyclone Belal, she will, for the benefit of the House, obtain from the Financial Services Commission, information as to the criteria used to determine the extent and cost of repairs thereof, indicating – (a) the total amount of funds disbursed therefor; (b) other type of compensation paid, if any, and (c) if insurance companies were involved in the assessment of all individual claims prior to payment being effected to the victims and, if not, why not.
Madam Speaker, I am informed by the Financial Services Commission that following damages sustained by several motor vehicles during flooding caused by Cyclone Belal on 15 January 2024, the then Government, on 19 January 2024, decided to compensate vehicle owners whose vehicles were affected through the FSC. This was an exceptional situation for the Commission, which, as a regulator, does not normally make payments with respect to insurance claims. Madam Speaker, I am informed by the FSC that the eligibility criteria for the payment of compensation to beneficiaries were determined by the FSC in consultation with the Insurers Association of Mauritius and officers of the Ministry of Finance, Economic Planning and Development. Initially vehicles owned by private individuals which were present on roads, at workplaces or at public places were eligible for compensation, which was further extended to micro and small enterprises having turnover not exceeding Rs30 m. Madam Speaker, I am also informed by the FSC that compensation paid for cases of comprehensive insurance cover represented the depreciated amount, that is, the gap between
79 the market value and the sum assured, and the policy excess for vehicles classified as total loss by insurance companies, whereas for cases where the vehicles could be repaired, the policy excess only was compensated. As for cases of vehicles classified as total loss under third-party insurance cover, the difference between pre-accident value and salvage cost, that is, the residual value of the scrap vehicle as determined by independent motor surveyor and Government Valuer was paid as compensation. For cases where the vehicles could be repaired, the cost of repairs as determined by the motor surveyor and Government Valuer was compensated. Madam Speaker, with respect to part (a) of the question, the total amount of funds disbursed by the FSC as per the aforementioned criteria as of to date is Rs58,640,344 representing 1163 flooded vehicle cases. With respect to part (b) of the question, Madam Speaker, I am informed by the FSC that no other type of compensation was paid to the beneficiaries. As regards part (c) of the question, I wish to inform the House that for those vehicles under comprehensive insurance cover, the onus was on the insurance companies to assess individual claims prior to payment being effected to victims as per the established criteria, whereas in the case of third-party insurance cover, the services of independent motor surveyors and Government Valuers from the Ministry of Infrastructure were also returned by the FSC to reassess surveys done by independent motor surveyors as a control mechanism. Thank you.
Thank you, hon. Minister. I have now the hon. First Member for Savanne and Black River. SMART CLINICS LTD – STATE LAND LEASE – BLACK RIVER