L’Acquiring real estate is every person’s dream. It most often requires a bank loan spread over long years of repayment, which can go up to 30 years. In addition to the financial capacity or the socio-economic situation of the person concerned, the funding bodies require death/disability insurance. To benefit from this coverage, insurers require a medical check-up. In the event of serious or chronic illnesses, the companies most often reject the file or, in lesser cases, they set an additional premium which can be very expensive. Several people have been confronted with this bitter experience and have been unable, in such conditions, to acquire housing.
“I wanted to buy an apartment for 1.6 million DH (30% down payment and 70% by a bank loan). To take out disability death insurance, the company with which my bank has an agreement invited me to take a medical examination with a doctor appointed by him, because the credit exceeds 1 million DH. I filled out a form including a questionnaire on my state of health. In my declarations, I stated that I am diabetic and hypertensive and that I was on permanent treatment. The doctor ordered blood tests and a stress test which confirmed my health problems. The insurer automatically rejected my file, arguing that given my age and my illnesses, I am considered to be at increased risk. He advised me to seek coverage from another insurer. I went around the market but in vain”, testifies Hamid Rachidi, a forties executive from Casablanca. Hamid’s case is not isolated, according to the information we have been able to gather.
In Morocco, there is no formula specifically dedicated to these people. We generally speak of aggravated risk when the risk of seeing the guaranteed event occur (disability or death) for a given person is statistically higher than that of a reference population. “Logically, the life expectancy of a cancer patient, a cardiac, diabetic or asthmatic person is significantly lower than that of the average population. The risk of death or disability increases with age. It is therefore quite normal that this type of cover is more expensive compared to a normal guarantee”, explains Hicham Tanane, insurance consultant in Casablanca.
“For fear that their credit report will be rejected, many people misrepresent their state of health and do not recognize that they have chronic or serious illnesses. As soon as the disability or death occurs a few years following the acquisition of the property, the insurer refuses to reimburse the bank which, in this situation, makes its mortgage rights prevail., emphasizes Tanane. In addition to the aggravated risks related to health, other coverage can be refused by companies, such as high-level athletes, seniors or high-risk professions such as mine clearance. In the past, this situation existed in France. Under pressure from associations, certain activists and also politicians, a specific system was launched. This is the convention “Insure and Borrow with an aggravated health risk”. It allows better access to credit for the people concerned. All signatory organizations undertake to find borrower insurance solutions, regardless of the health problem presented by the applicant. If the applicant’s state of health makes it impossible to obtain insurance cover under standard conditions, then this agreement is triggered.
