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Insurance in Mauritius is regulated by the FSC Mauritius under the Insurance Act 2005(IA). The FSC Mauritius regulates insurance companies, which are its licensees, and ensures that they comply with provisions of the IA. The FSC’s objective is to maintain a fair, safe, stable and efficient Insurance industry in Mauritius.
Insurance is designed to protect an individual, company or other entity against certain risks such as unexpected loss. In Mauritius, it is a requirement of the law to subscribe to a motor insurance, while other types of insurance are optional.
Insurances can be broadly divided into two types: long term insurance and general insurance.
A typical example of a Long-Term insurance is Life insurance which pays the beneficiaries a lump sum upon the insured's death or at the end of the term. Other types of long term insurance include unit-linked insurance which also combines investment, i.e the policy holder pays a monthly premium which is partly invested. At maturity or when the insured wishes to withdraw his money, the sum paid is based on the current market value.
Offers indemnity given to an event of loss often over a shorter period, e.g., damages to your assets.
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To protect yourself, your family and your assets, and safeguard against a wide range of risks. Insurance is about managing risks. If you have an insurance cover, you transfer part of the risk to your insurer/insurance company. Without insurance, you bear the risk by yourself.
When you subscribe to an insurance policy, you become a policy-holder or insured person. You pay a certain amount of money called a ‘premium’ to the insurance company for being covered against certain risks. If something goes wrong which is covered by the policy, you can make a claim and may be indemnified for your loss.
Taking an insurance involves cost, therefore it is important that you take the appropriate insurance cover depending on your personal and financial situation. Your decision should be based on what you would like to insure. For general insurance, you need to consider the value of the asset you are thinking to insure, the financial loss you would suffer if that asset is lost or damaged, and how much it would cost to replace. For life insurance, you need to consider who is dependent on you and your income in case you are no longer around or become sick or injured and are unable to work. If you have children or parents to support, your needs for life insurance may be greater than if you are single with no dependents. You also need to consider any debts that would need to be repaid, e.g. personal loans or housing loans. Points to consider before taking an insurance cover:
Parties are:
First you need to contact the Insurance Company or the relevant professionals.
You can also contact:
Office of Ombudsperson for Financial Services
8th Floor, SICOM Tower, Wall Street Ebene
Telephone number: 468 6475
Fax number: 468 6473
According to the provisions of Section 81 of the Insurance Act 2005, any person who has to subscribe to an insurance policy to guarantee a debt or other obligation with respect to a:
has a free choice as to the insurance policy required to guarantee this transaction? The insurance policy to be provided can take the form of:
A person who chooses to contract a new insurance policy may freely:
Any person who is required to subscribe an insurance policy to guarantee a debt or other obligation must be able to confirm, in writing, that he has been informed of his right to this free choice under Section 81 of the Insurance Act 2005 and that he has exercised this right freely and willingly.
The provisions of Section 81 of the Insurance Act 2005 which provide for free choice of policy do not apply to a loan granted by a long term insurance company to a long term insurance policyholder where this loan is to be guaranteed by the said long term insurance.
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