The Financial Services Commission (FSC) has reportedly received around 700 claims from vehicle owners affected by the floods that occurred on January 15th in Mauritius. The FSC’s initiative to support affected vehicle owners has been well-received, but concerns are arising about the reimbursement process.
There are worries about the source of funds required to cover the potentially expensive compensations. The government has expressed its intention to inject funds through the FSC, but it could still cause taxpayers to pay.
The decision to reimburse even third-party insured vehicles could have financial implications for the government. The FSC is not accustomed to handling claims, causing uncertainty about the reimbursement process.
Insurance companies are emphasising that the reimbursement process is complex, citing assessment, sourcing spare parts, and negotiating costs as examples. The FSC aimed to make reimbursements a week after the floods, but it wasn’t able to meet that deadline.
Some owners covered by comprehensive insurance have filed their claims with the FSC, anticipating a quicker resolution. The FSC will have to sift through genuine cases among these claims. Insurance companies are uncertain who is responsible for reimbursements.
The National Land Transport Authority has set up special counters for the renewal and reimbursement of vehicles damaged by the floods. The initiative has resulted in confusion about who is responsible for reimbursement. Insurance companies still aren’t clear about how the process will be managed.
The FSC will need to process all claims registered since the floods. Insurance companies emphasise the need for a balanced approach to ensure only legitimate cases are compensated.
Source: l’Express
