Proposed changes to Insurance law

 

The Ministry of the Economy and Tax is undergoing a series of talks with Spain's Council of Insurance Companies, to request that a maximum of two months to agree or decline a claim from the date of its notification – and then five days to settle the claim – is brought into force.

If the proposed change to the current 'Law of Insurance Contracts' is agreed, it is unlikely to be brought into force until 2012.

It is also proposed that Insurance companies should only have 15 days to notify the insured when premiums have not been paid, as opposed to 6 months at the present.Insurance cover may also be withdrawn within three months, rather than the current six months, of non-payment of premiums.

Currently, when making a claim, the law allows the insured has just five days, to notify the insurance company of the extent of the damage. This could now be increased to one month.