The obligation to insure against ‘All Construction Risks’ and ‘Ten-Year Civil Liability’ comes into force

The Supervisory Authority of Insurance and Social Welfare (ACAPS) and the Moroccan Insurance Federation (FMA) would like to inform the general public of the entry into force, on 30 December 2024, of compulsory ‘All Risks Construction’ (TRC) and ‘Decennial Civil Liability’ (RCD) insurance. The aim of this new obligation is to guarantee better protection for the parties involved in construction projects and to strengthen compliance with regulatory requirements.

All-risk construction insurance (TRC) and Ten-Year Civil Liability insurance (RCD) are now obligatory, following the publication of two ministerial decrees in the Bulletin Officiel. The first relates to construction insurance, while the second sets out the standard general conditions applicable to compulsory TRC and RCD insurance policies.

These decrees, drawn up on the recommendation of the Supervisory Authority and in application of the Insurance Code, set out the key parameters of these two compulsory insurance policies, in particular cover limits, applicable excesses, exclusions, and standard general terms and conditions. Their aim is to protect the various players in the construction sector while guaranteeing a structured and secure framework for the completion of projects.

The ‘All Risks Construction’ insurance policy is compulsory for the client throughout the duration of the works. It includes two essential types of cover: damage cover, covering material damage to the building, materials and equipment used on the site; and civil liability cover, covering the financial consequences of damage caused to third parties during the works.

This cover protects both the owner and the professionals involved in the project, right through to acceptance of the work.

Ten-Year Civil Liability’ insurance is compulsory for professionals in charge of the work, including architects, engineers, and contractors. It takes effect once the work has been handed over, and remains valid for 10 years. It covers damage that compromises the solidity of the structure, such as collapses due to construction defects, faulty materials, or soil-related problems.

TRC and RCD insurance is compulsory for buildings used for industrial, commercial, hotel, sports or accommodation purposes, as well as residential buildings with more than three storeys or a surface area of more than 800 m².

In addition, the presentation of a valid TRC insurance certificate is now a prerequisite for obtaining a building permit or certificate of conformity.

It remains the intention of ACAPS and the FMA to ensure compliance with these two insurance obligations in order to provide optimum protection for policyholders and beneficiaries.