The claims for the extensive damage resulting from the recent floods on the coast in early December were, to a large extent, met by Spain’s Consorcio de Compensacion de Seguros (CCS).
The CCS is a central compensation fund which is funded by a very small percentage of the sums insured on every insurance policy sold in Spain and which is run by the Government. It’s been in existence since 1941, and is designed to compensate victims with insurance cover for losses resulting from “extraordinary events”, such as earthquake, tsunami, terrorism or floods.
As indicated in our other blog post about the floods, the CCS on the whole performed wonderfully, however, unlike insurance companies who tend to show a degree of flexibility when it comes to paying premiums, the CCS were rigorous and if the client had not paid the premium related to the period when the claim occurred within the 30 days from the renewal date, which the Law allows, then they would turn down the claim without further discussion.
We therefore strongly encourage clients to make sure that they settle their premiums on or around the renewal date, and definitely within the 30 day grace period as otherwise you could be left uninsured in the event of a claim.