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Law Amending The Law Of 25 June 1992 On Terrestrial Insurance Contract And The Law Of July 12, 1976 On To Repair Some Damage To The Private Property By Natural Disasters (1)

Original Language Title: Loi modifiant la loi du 25 juin 1992 sur le contrat d'assurance terrestre et la loi du 12 juillet 1976 relative à la réparation de certains dommages causés à des biens privés par des catastrophes naturelles (1)

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21 MAI 2003. - An Act to amend the Land Insurance Contract Act of 25 June 1992 and the Act of 12 July 1976 on the repair of certain damages caused to private property by natural disasters (1)



ALBERT II, King of the Belgians,
To all, present and to come, Hi.
The Chambers adopted and We sanction the following:
CHAPTER Ier - General provision
Article 1er. This Act regulates a matter referred to in Article 78 of the Constitution.
CHAPTER II. - Amendments to the Act of 25 June 1992 on the land insurance contract
Art. 2. Section 67 of the Land Insurance Contract Act of 25 June 1992, as amended by the Act of 16 March 1994, is amended as follows:
(a) § 2 is replaced by the following provision:
Ҥ2. With respect to the simple risks defined by the King, compensation is paid as follows:
1° the insurer shall pay the amount to cover the rehousing costs and other costs of first necessity not later than fifteen days after the date of the claim or the disclosure of the evidence that such costs have been incurred;
2° the insurer shall pay, in the non-ante days after the date of the claim, the amount of the indisputably payable in common agreement between the parties;
3° in the event of reconstruction or reconstruction of damages, the insurer is required to pay to the insured within 30 days of the date of completion of the expertise or, if not, the date of the determination of the amount of damage, a first instalment equal to the minimum allowance set out in § 3, 1°, b).
The remainder of the allowance may be paid in instalments as the reconstruction or replenishment progresses, provided that the previous instalment is exhausted.
The parties may agree after the claim another distribution of the payment of compensation instalments;
4° in the event of a replacement of the building affected by the acquisition of another building, the insurer is required to pay to the insured within 30 days of the closing date of the expertise or, in the absence of expertise, the determination of the amount of the damage, a first instalment equal to the minimum allowance set out in § 3, 1°, b).
The balance is paid to the passation of the authentic act of acquisition of the replacement property;
5° in all other cases, the allowance shall be payable within 30 days after the closing date of the expertise or by default the date of the determination of the amount of the damage;
6° the closing of the expertise or the estimate of the damage referred to in 3°, 4° and 5° above shall take place in the nounting days after the date of the claim. »
(b) a paragraph 2bis is inserted as follows:
“§ 2bis. The deadlines set out in § 2 shall be suspended in the following cases:
1° The insured did not fulfill, on the closing date of the expertise, all the obligations under the insurance contract. In this case, the deadlines begin to run only the day after the day the insured has fulfilled the said contractual obligations;
2° This is a flight or there are presumptions that the claim may be due to an intentional fact in the head of the insured or the beneficiary of insurance. In this case, the insurer may reserve the right to withdraw a copy of the repressive file. The request for authorization to take note of the request must be made no later than 30 days after the close of the expertise ordered by him. The eventual payment must take place within 30 days when the insurer has been aware of the findings of the said file, provided that the insured or the beneficiary, who claims compensation, is not prosecuted in criminal cases;
3° The setting of the allowance or the responsibilities insured are challenged. In such cases, the payment of the contested portion of the award must be made within thirty days after the closing of the contestations;
4° The claim is due to a flood defined in subsection Irebis of this section. In this case, the Minister who has the Economic Affairs in his or her powers may extend the period of non-ante days provided for in § 2, 2°.
5° The insurer informed the insured in writing of the reasons independent of his or her will and that of his or her agents, which prevent the termination of the expertise or the estimation of the damages referred to in § 2, 6°. »
(c) a sixth paragraph is added, as follows:
“§ 6. In the event of non-compliance with the time limits referred to in § 2, the portion of the allowance that is not paid within the time limits shall bear full interest at double the rate of legal interest on the day following that of the expiry of the period until the effective payment, unless the insurer proves that the delay is not attributable to himself or to one of its agents. »
Art. 3. It is inserted after subsection Ire Part II, Chapter II, Section II, of the Act, a new subsection Ire as follows:
"Subsection Ire - Flood insurance for simple risks.
Rule 68-1
Coverage of flood risk
Fire hazard insurance contracts that cover simple risks as defined in accordance with Article 67, § 2, located in risk zones delimited under Article 68-7, must include the guarantee of floods under the conditions laid down in this subsection.
All of the hazards covered by this subsection form a single guarantee that cannot be limited to a quotity of the amounts that are insured on the building and the content only according to the rules determined by the King.
Unless otherwise provided, the provisions of subsection Ire applies to the warranty referred to in this subsection.
Rule 68-2
Inundation: definition
Inundation means an overflow of watercourses, canals, lakes, ponds or seas, an overflow or refoulement of public sewers or a dyke break, due to atmospheric precipitation, a storm, a melting of snow or ice, or a tidal wave.
Rule 68-3
Inundation: uniqueness
It is considered to be a single flood, the initial overflow of a stream, a canal, a lake, a pond or a sea, and any overflow occurring within 168 hours of the overflow or return of this stream, this canal, lake, pond or sea within its usual limits.
Rule 68-4
Scope of guarantee
The guarantee covers at least:
(a) the damage caused directly to the properties insured by flooding as defined in section 68-2 or an insured hazard that results directly, including fire, explosion, including explosives, implosion and theft;
(b) damage to insured property that would result from measures taken in the above-mentioned case by a legally constituted authority for the preservation and protection of property and persons, including floods resulting from the opening or destruction of locks, dams or dams with the aim of avoiding a possible flood or the extension of it.
Rule 68-5
Exclusions
§ 1er. In principle excluded from the warranty referred to in this subsection, except as expressly stipulated in the insurance contract, non-granted crops, out-of-building live livestock, soils, crops and forest lands.
§ 2. may be excluded from the warranty under this subsection:
(a) objects located outside the buildings unless they are permanently fixed;
(b) constructions that are easy to move or dismantle, dilapidated or in the process of demolition and their potential content, unless these constructions constitute the principal dwelling of the insured;
(c) fences and hedges of any kind, gardens, plantations, access and courses, terraces, garden shelters, discounts, storage, and sumptuous properties such as swimming pools, tennis and golf;
(d) buildings or parts of buildings under construction, processing or repair and their potential content, unless they are inhabited or normally habitable;
(e) Ground, air, sea, lake and river vehicles;
(f) goods transported;
(g) property whose compensation for damage is organized by special laws or international conventions.
§ 3. The King may specify the exclusions referred to in the preceding paragraphs.
Rule 68-6
Such property shall be excluded from the warranty referred to in this Sub-Section, the property of which it is proven that their presence at the time of the harmful fact, at the place where they have been affected, is due to a fault, negligence or imprudence of the court.
Rule 68-7
Risk areas
§ 1er. At-risk areas mean areas that have been or may be exposed to repetitive and significant flooding.
§ 2. The King determines, in agreement with the regions, the criteria on which they must formulate their proposals for delimitation of risk areas.
The King then defines risk zones.
It can only extend or reduce risk areas in agreement with the regions. It also sets out the modalities for the publication of risk zones.
§ 3. By derogation from Article 68-1, paragraph 3, the insurance contract may not include any cover against flooding when it covers a building, part of a building or the contents of a building that has been built more than eighteen months after the date of publication to the Belgian Monitor of the Royal Order classifying the area where this building is located as a risk zone in accordance with § 2.
The property referred to in the preceding paragraph is the property under construction, processing or repair that is permanently closed with doors and windows that are permanently and fully covered.
This exemption is also applicable to land extensions of existing property prior to the classification date referred to in the first paragraph.
This exemption is not applicable to property or parts of property that are rebuilt or reconstituted after a disaster and that correspond to the value of reconstruction or replenishment of property prior to the disaster.
§ 4. Information on the fact that a property is located in a risk area is provided:
- by the acquisition committee or notary, in the authentic act, in the event of a translative act of real law on a real property;
- by the architect, in writing in the contract, in case of construction, restoration or extension of a real estate;
- by the assignor, in writing in the contract, in case of a translative act of real law on a real property;
- by the lessor, in writing, in the contract or a specific document, for real property given for rent and erected after the delimitation of risk areas;
- by agents designated for that purpose by the King;
- by the municipal authorities with regard to the risk areas located in their territory.
Rule 68-8
Payment of compensation
§ 1er. Except as provided in paragraph 2, the allowance shall be paid under the provisions of section 67.
§ 2. The insurer may limit the total of the allowances that the insurer will have to pay during the flood occurrence to the lesser amount of the allowances obtained by applying the following formulas:
a) 3.000.000 EUR + 0.35 x P + 0.05 x S
(b) 1.05 x (3.000.000 EUR + 0.35 x D)
where:
- P is the encumberment of premiums and accessories, excluding acquisition costs, for fire, electricity and related hazards of the simple risks referred to in section 67, § 2, encumbered by the insurer during the accounting period preceding the claim,
- S is the amount of compensation payable by the insurer for flooding exceeding 3.000.000 EUR + 0.35 x P.
§ 3. When an insurer applies the provisions of the preceding paragraph, the compensation that it must pay under each of the insurance contracts that it has entered into is reduced to competition.
Rule 68-9
Pricing Office
§ 1er. In order to ensure the coverage of the risks covered by this subsection, the King shall establish a Pricing Office which is responsible for finding flood insurance coverage for the risks that do not find it and specifying its tariff conditions.
Can be addressed to the Bureau, an insurance applicant whose risk has been denied by at least three insurers or who has been offered, by at least three insurers, a coverage whose premium or deductible exceeds the maximums set by the King, due to the risk of flooding he represents.
The King sets the procedure and deadlines for access to the Bureau.
§ 2. The insurer is required to inform the insurance applicant that it is in one of the cases provided for in § 1er.
§ 3. The Bureau consists of four members representing insurance companies and four members representing consumers, appointed by the King for a term of six years.
Members of the Bureau are selected from a double list presented by professional associations of insurance companies and by associations likely to represent the interests of consumers.
The King appoints, for a term of six years, a president who does not belong to the previous categories.
The King sets out the allowances to which the President and the members of the pricing office are entitled.
The King also designates for each member an alternate. Alternates are chosen in the same way as the actual members.
The Bureau may join non-deliberative experts.
Ministers with Economic Affairs and the Interior in their responsibilities may delegate an observer to the Bureau.
Unless the King decides otherwise, the Bureau shall carry out its activities within the framework of the Caisse nationale des Calamités referred to in section 35 of the Act of 12 July 1976 on the repair of certain damage caused to private property by natural disasters, which shall provide the secretariat and day-to-day management.
§ 4. The King shall determine the operating conditions of the Office and the obligations of insurers to comply with the coverage obligation referred to in paragraph 1er.
An insurer who does not comply with the obligations set out in or under this section is presumed to no longer operate in accordance with the provisions of the Act of 9 July 1975 on the control of insurance companies.
§ 5. The Bureau's tariffed risks are covered by all insurers performing simple fire insurance in Belgium. The Office assigns these risks to one or more insurers. The result of this management as well as the Bureau's operating costs are distributed among insurers who practise simple risk fire insurance in Belgium. »
CHAPTER III. - Amendments to the Act of 12 July 1976 on the repair of certain damage caused to private property by natural calamities
Art. 4. Section 2 of the Act of 12 July 1976 on the repair of certain damage caused to private property by natural calamities is amended as follows:
(a) to § 1erParagraph 1er, 1°, the words "having caused significant damage" are replaced by the words "or have caused significant damage";
(b) the article is supplemented by a § 3 written as follows:
Ҥ3. With respect to public calamities, this Act does not apply to property that may in principle be covered by an insurance contract in accordance with sections 68-1 and following of the Act of 25 June 1992 on the land insurance contract, except:
1° what is provided for in Chapter V of this title,
2° where the affected property is not insured due to the condition of fortune of the holder of the insurance interest.
The King shall, by order deliberately in the Council of Ministers, establish the conditions for the benefit of the provisions of the 2nd of the preceding paragraph. »
Art. 5. It is inserted in the same law under Title Iera Chapter V, as follows:
« Chapter V - Damage to insured property against floods
Article 34-1
This chapter applies:
(a) property deemed to be simple risks within the meaning of section 67 of the Act of 25 June 1992 relating to the land insurance contract and which are covered by an insurance contract at the time of the claim in accordance with sections 68-1 and following of the Act;
and
(b) in the event of a flood referred to in section 68-2 of the Act.
Rule 34-2
Financial intervention is granted only in the following cases:
1° where an insurance company has limited, pursuant to section 68-8, § 2, of the law of 25 June 1992 referred to above, the total of the allowances it is required to pay when an inundation occurs;
2° where the insurance company debits compensation is failing to perform its obligations under one or more of the following circumstances:
(a) it renounced the approval in Belgium,
(b) in Belgium has been the subject of a revocation or a decision to ban activity under Article 71, § 1er, paragraph 3 and § 2, of the Act of 9 July 1975 concerning the control of insurance companies,
(c) it was declared bankrupt.
Rule 34-3
The financial intervention consists of paying the beneficiaries of insurance contracts, the portion of the allowance that is not paid by the insurance company.
When the dependant amount of the National Fund of the calamities referred to in section 35 exceeds €125 million, the financial intervention is reduced to competition.
Rule 34-4
When an insurance company reaches its intervention limit under section 68-8, §2, of the above-mentioned Act of 25 June 1992, it introduces a file with the Caisse Nationale des Calamités to obtain the amount of the allowances to which its insured persons are entitled.
Upon receipt of this amount, the insurance company pays it to the beneficiaries of insurance contracts.
The King shall determine the terms and conditions of application of this article.
Rule 34-5
§ 1er The King sets out the other conditions for allocating financial intervention.
§ 2. The dependants of the National Fund of Calamities are reviewed in the following cases:
1° where it is proven that the amount previously allocated has been incorrectly calculated;
2° in case of material error.
Article 34-6
In the cases referred to in the 2nd of section 34-2, the Caisse nationale des Calamités shall, against the insurance company, make an appeal against compensation paid.
The National Fund of Calamities is subrogated to the rights of injured persons as it compensated the damage.
Subrogation may not prejudice the personal rights of the injured persons who would be in cooperation with the Fund. These injured persons, excluding those who would be subrogated, exercise their rights in preference to the Fund. »
Art. 6. Article 35, § 1erParagraph 1erthe same law, as amended by the Act of 13 August 1986 and the Act of 28 December 1990, is inserted between the third and fourth dashes a new dash written as follows:
" - the financial interventions referred to in Chapter V."
Art. 7. Article 42, § 1er the Act, amended by the Act of 13 August 1986, is replaced by the following provision:
« § 1er. The State may grant to communities, regions, provinces, communes, intercommunal communities, public welfare centres, public institutions responsible for the organization of worship or to offer moral assistance according to a non-denominational philosophical conception, polders and wateringues, subsidies for the reconstruction and reconstruction of their property belonging to the public domain, destroyed or damaged as a result of a calamity recognized by the King. »
Art. 8. This Act comes into force on the date of entry into force of the Orders referred to in section 68-7 of the Act of 25 June 1992 relating to the Contract of Terrestrial Insurance as introduced by section 3 of this Act, with the exception of section 68-9 of the Act of 25 June 1992 referred to above, as introduced by section 3 of this Act, which comes into force on the day of its publication.
The King shall determine the date on which this Act applies to existing contracts on the date of its entry into force, as well as the period in which insurance companies make formal adjustments to contracts.
Promulgate this law, order that it be clothed with the seal of the State and published by the Belgian Monitor.
Given in Brussels on 21 May 2003.
ALBERT
By the King:
Deputy Prime Minister and Minister of Mobility and Transport,
Ms. I. DURANT
The Minister of the Interior,
A. DUQUESNE
Minister of Justice,
Mr. VERWILGHEN
Minister of Economy,
Ch. PICQUE
Minister for Agriculture,
Ms. A.-M. NEYTS-UYTTEBROECK
Minister of Consumer Protection,
J. TAVERNIER
Seal of the state seal:
Minister of Justice,
Mr. VERWILGHEN
____
Note
(1) House of Representatives.
Doc. 50-1007
Regular session 2002-2003.
Parliamentary documents:
Number 1: Bill;
nbones 2-7: Amendments;
Number 8: Report;
No. 9: Text adopted by the Commission;
No. 10: Amendments submitted after submission of the report;
No. 11: Text adopted in plenary and transmitted to the Senate.
Annales of the House of Representatives.
Full report: 19 and 20 March 2003.
Senate.
No. 2-1555 - Regular session 2002/2003.
Parliamentary documents:
Number 1: Project referred to by the Senate.
No. 2: Amendments;
Number 3: Report;
No. 4: Amendments re-imposed after the approval of the report;
No. 5: Decision not to amend.