Government extends coverage of SME natural disaster insurance support program to damages after Black Rainstorm signal hit

The insurance coverage provided to SMEs will be extended this year to cover losses incurred when the black rain warning signal is triggered, a policy announcement that comes after intense rains impacted the SAR.

A black rain warning signal is hoisted when heavy rain has fallen or is expected to fall over large areas, exceeding 80 millimeters in an hour, and is likely to continue.

It is the highest rain storm signal after yellow and red and one was raised last week after heavy rain and thunderstorms were reported in the city with more than 120 liters per square meter of rain reported in the Macau Peninsula and Taipa in a single day, resulting from flooding in low-lying areas and suspended courtyards.

According to an announcement from the Macau Economic and Technological Development Bureau (DSEDT) and the Macau Monetary Authority (AMCM), from today until December 30 of the current year, insurance Major Catastrophe and SME Major Catastrophe Insurance Premium Financial Support Requests for 2022 will extend insurance to cover verified losses when a black rain warning signal is triggered.

These two support plans were launched in 2019, with the aim of helping SMEs located in the city centers of the city, in view of the non-existence of any insurance cover for damage caused to property of the city. company, in times of strong typhoons and storm surges.

“In the years 2019 to 2021, 55 insurance policies were issued and the respective financial support was granted, in catering, retail, dried seafood wholesale and retail and wholesale of electrical appliances, etc.,” the department noted.

Thus, now, the Major Catastrophe Insurance Scheme will, through a uniform policy, provide coverage to SMEs for material damage and loss verified after the issuance by the Meteorological and Geophysical Bureau (SMG) of any typhoon or Tropical Storm Signal 8 or above, Level 4 Storm Surge Warning or above, or a Black Rain Warning Signal, with no deductible or maximum indemnity limit for goods.

SMEs are allowed to purchase major catastrophe insurance for each business establishment, through the five insurance companies in Macau that participate in the above scheme.

The insurance amounts are fixed at MOP 100,000, MOP 200,000 or MOP 300,000 respectively, while the corresponding premiums are MOP 25,000, MOP 50,000 or MOP 75,000.

In addition, a discount on premiums will be granted to companies that have never submitted claims, when renewing the insurance, with discounts of 20%, 25%, 30% for the first, second and third years of insurance renewal. , respectively.

For renovations to be carried out in the fourth year or subsequent years, discounts of 35% will be granted.

“It is to be hoped that the aforementioned measures will be able to encourage companies to continue to insure themselves, in order to manage their own risks”, note the financial and monetary authorities.

In addition, the Macao SAR Government will continue to provide, through the Industrial Development and Commercialization Fund, financial support in the form of major disaster insurance premiums to qualified SMEs that meet the established requirements. , the amount of financial support equivalent to 50% or a maximum of MOP 30,000 of the annual total of the standard premium.