Africa-Press – Cape verde. The State’s National Revenue Secretariat and the insurance companies Garantia and Ímpar announced that they are evaluating measures to respond to the losses caused by the severe storm that hit the islands of São Vicente and Porto Novo, causing significant damage to homes, businesses, and infrastructure.
According to Liza Vaz, the State’s National Revenue Director, an “exceptional framework” has not yet been defined for this matter, but what the legal framework of the State of Calamity allows is being analyzed.
Vaz indicated that the measures under consideration cover not only inventory issues, but also current and negotiated payments, as well as the suspension of seizures and inspections.
“The issues are coming in, they are being considered, and we will be providing guidance soon,” she said, adding that it is not possible to set a date for a decision due to the operational constraints caused by the state of calamity.
Insurance Companies
On the insurance side, Guarantee’s Northern Commercial Director, Paulo Monteiro, stated that customers should report damages “as soon as possible” so that the insurer can schedule inspections and assess the losses as quickly as possible. “As part of the coverage of the contracted policy, we will adjust the loss,” he assured, noting that the existence of coverage for natural disasters depends on the terms of each contract.
Paulo Monteiro emphasized that, in the current context, claims registered in São Vicente related to the rains will be prioritized. When asked about the possibility of the insurer assuming compensation even without contractual coverage, he forwarded a concrete response to the company’s management, but assured that “all possibilities are on the table” and that the company is “sensitive to the situation” São Vicente is facing.
The executive revealed that, to date, there is no concrete data on the number of claims received or the total amount of losses, as many customers are still assessing the damages.
“Some complaints are merely warnings, stating that there was water ingress or flooding, but without all the details,” he said.
Both the National State Revenue Secretariat and Garantia (the insurance company) are asking businesses and individuals to contact their respective entities to facilitate assessment and action. While the government is analyzing legal and administrative solutions, the insurer emphasizes that each case will be evaluated “based on the insurance and coverage contracted.”
Luís Vasconcelos, Chairman of the Board of Directors of the insurance company Ímpar, stated that the company has already received “hundreds” of complaints from customers affected by the recent floods in São Vicente, some involving “significant losses.” In an interview, Vasconcelos emphasized that the insurer acted immediately, even though its own facilities were affected, creating an “action office” to expedite the payment of compensation.
“After a few hours, we were ready to assist our customers,” he said, explaining that technical teams have been in the field since Monday, inspecting damage, advising clients, and collecting documentation. “The insurance’s effectiveness only becomes material when compensation is disbursed,” he emphasized.
According to Luís Vasconcelos, the priority is to ensure that covered losses are reimbursed “as quickly as possible.” He acknowledged, however, that “unfortunately, not many injured parties have insurance,” emphasizing the importance of viewing insurance “not as a cost or tax, but as an investment in protection.”
The executive noted that phenomena such as storms, floods, and earthquakes—covered under the TIFS clause—are not always included at the client’s discretion, a situation that now leaves some in an “unprotected and difficult position.” “Technically, we are unable to classify [losses] when coverage has not been purchased,” he said, noting that insurers also resort to international reinsurance and have contractual rules to comply with.
In addition to its insurance response, Ímpar made available 10,000 contos to support the replacement of assets and infrastructure, in collaboration with institutions such as the Red Cross, Caritas, Casa da Sopa, and Biosfera. An account was also opened at the BCN to collect donations, which will be channeled to organizations on the ground.
The insurer recommends that clients recover what is possible without jeopardizing their safety, inventory and document the damage with photographs, and provide all necessary information to expedite the process. “This is the moment when the role of the insurance business materializes, as a protective body for society,” concluded Luís Vasconcelos.
Amid the damage caused by the recent rains in São Vicente, which resulted in flooded streets, damaged infrastructure, and damaged goodsWith the islands destroyed, the island’s business owners face the challenge of keeping their businesses afloat and mitigating the financial impact.
Meeting Requirements
Éder Lisboa, a certified accountant at BTOC, explained in the “Economia Descomplicada” section on Rádio Morabeza that merchants and business owners affected by the storm can classify losses caused by extreme weather events as “extraordinary costs or losses,” as long as the damage is irreversible. However, for these losses to be accepted for tax purposes, business owners must meet certain requirements.
The first step is to ensure robust documentary evidence, including photographs of the damage, detailed inventories of the affected goods, incident reports from the appropriate agencies, technical opinions, and, if applicable, formal notification to the insurer. It is essential that the occurrence be characterized as an involuntary event, caused by force majeure and beyond the business management’s control. Furthermore, damaged assets must be properly recorded in an inventory before the event, and an up-to-date inventory is key to tax authorities’ acceptance of the loss.
Tax authorities can fully accept the loss, provided it is proven that the loss is essential for obtaining or maintaining income and that it is validated by the tax authorities. To increase the chances of acceptance, it is recommended that business owners keep their inventory up-to-date, prepare a report counting and assessing the lost value, and formally report the situation to the appropriate authorities, such as Civil Protection, the police, and the insurance company.
Éder Lisboa concluded that, in times of crisis, quick reaction and organized information make all the difference. Experience shows that investing in prevention—through up-to-date inventories, adequate insurance, and risk management strategies—is crucial to ensuring business resilience in the face of unexpected events.
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