Capitalization
What is Accumulation/Capitalization?
The Capitalisation Contract is an insurance contract in which the probability of death or survival is not taken into account in determining the benefit in the sense that, in exchange for single or periodic premiums, the beneficiary receives the capital constituted by the payments made, plus interest and profit-sharing.
How Does it Work?
Premiums, less acquisition costs, are paid into an individual savings account and are revalued on a daily basis from the value date at the minimum guaranteed rate provided for in the contract. A management fee fixed in the contract is also deducted.
On 31 December, of every financial year, the savings accumulated on that date are revalued at the minimum guaranteed rate. The premiums paid during the following financial year, net of acquisition costs, are revalued on a pro rata-temporis basis at the minimum guaranteed rate for the current financial year.
The savings thus accumulated shall increase annually, taking into account the profit-sharing under the conditions laid down in the contract.
In the event of withdrawal from the contract during the financial year, the savings accumulated on 31 December of the previous financial year and the premiums paid during the financial year in question, net of acquisition costs and benefits paid, are revalued pro rata temporis at the minimum guaranteed rate for the current financial year.
The savings built up can be fully or partially recovered:
- at the end of the contract, in the form of an annuity or a lump sum depending on the option chosen by the policyholder and indicated in the contract;
- before the end of the contract, through a total surrender, ending the contract, or a partial surrender;
- in the form of an advance (loan granted by the Insurer) according to the terms of the contract.
In the event of the death of the policyholder before the end of the contract, the savings acquired at the date of death are paid to the beneficiary(ies) designated in the contract. Some capitalisation contracts also provide that in the event of the policyholder's absolute and definitive disability before the end of the contract, the savings acquired at the time of the policyholder 's disability are paid to the policyholder.
Type of Insurance :
Capitalisation is an insurance of persons for anyone who wants to build up and grow savings.
Rights and Obligations of the policyholder?
We invite you to refer to the "Insurance Guide" published on the ACAPS portal.
What does the Authority do?
Within the framework of the powers vested in it by Law No. 64-12 establishing the Insurance and Social Security Supervisory Authority, the latter institution ensures that any and all insurance products offered to consumers are understandable, balanced, useful and that they comply with the regulations in force. It also shall monitor the reliability of the information provided to policyholders and ensure the fair treatment of policyholders by Insurers.
Legal/Judicial Remedies in Case of Dispute with Your Insurer?
In accordance with Article 7 of Law No. 64-12, the Insurance and Social Security Supervisory Authority has the power to investigate complaints from customers of insurance companies and the intermediaries (brokers) thereof. Nevertheless, it is recommended that you first contact the broker or Insurer against whom your complaint is directed. If the dispute persists after this step, you can contact ACAPS by one of the means at your disposal. The Authority shall then examine your complaint and take the most appropriate action, in accordance with the legal and regulatory provisions and within the scope of its powers, to settle the dispute.
