Law No. 2021-1837 of 28 December 2021 replaced Law No. 82-600 of 13 July 1982, as amended, regarding compensation for victims of natural disasters (Article L.125-1 of the Insurance Act). It aims to provide compensation to victims of natural disasters based on the principle of pooling between all policyholders and the establishment of a state guarantee.
This system was created to guarantee damage caused by risks not covered by traditional insurance rules to movable or immovable property covered by an insurance contract.
Three conditions must be met for a natural disaster file to be created.
However, compensation can only be intervened when the state of natural disaster has been declared by inter-ministerial order.
First condition regarding the nature of the damage
Only direct material damage that has as its decisive cause the abnormal intensity of a natural agent can be considered to be the effects of natural disasters. The law only retains the abnormal aspect of the natural phenomenon, as the extent of the damage is not taken into account.
Second condition regarding the nature of the event
The natural disaster guarantee is called upon to intervene against risks that are not covered under traditional insurance rules. These include floods, run-off of water or mud, violent hazards, avalanches, rock collapse, landslides or collapse, earthquakes and shrinkage-swelling of clay.
As a result, all other damages should normally give rise to compensation under conventional insurance, except for the natural disaster scheme. This is especially the case with lightning, storms or hail.
Third condition regarding the guaranteed goods
Only movable or immovable property that does not belong to the state and is covered by non-life insurance can benefit from natural disaster coverage (regardless of whether the property belongs to a natural or legal person, an association or a society).
Therefore, the scope of the natural disaster procedure does not include property that is uninsured or generally excluded from non-life insurance contracts, especially land, plantations, fences, retaining walls, pipes, roads, engineering works
Since the coming into force of the 1982 Act, on 1 March 2022, in total 1838 municipal requests for recognition of the state of natural disaster in Allier has been given for phenomena of floods and mudslides, landslides, earthquakes, droughts.