"France is not normally a country associated to the earthquake risk, but certain regions of the country have a weak to moderate exposure. However, a major earthquake in the south of France would cause very important damages, estimated to reach EUR 11,5 billion by an European study conducted in 2004", Malgorzata SROKA-PICOT explained.
In France, the cover for natural disasters is offered through facultative or compulsory insurance with explicit contractual conditions or through specific compensation schemes. These schemes include public funds (National Fund for Agricultural Disasters - 1964 Law) and the National disaster compensation scheme (1982 Law).
"The French natural disaster scheme was created by the law of 13 July 1982. It was introduced to make up for the inadequate cover of natural disasters, for which, until then, only very low levels of insurance were provided. It is not a true insurance scheme but a compensation scheme based on a public-private partnership. It is based on paragraph 12 of the preamble of French Constitution, which states : 'The Nation declares all French Citizens to be equal and united in solidarity when faced with loss resulting from natural disasters'", Malgorzata SROKA-PICOT added.
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