How much money should be compensated?
The amount of money to compensate depends on the actual damage caused to the vehicles or persons, and is a function of what each and every company policy stipulated in the General and Particular Conditions of the policy. Below is a brief overview of what the law provides in this regard as limits.
The first paragraph of Article 18 of Law 50/1980 provides:
“The insurer is obliged to pay compensation at the end of investigations and surveys necessary to establish the existence of the claim and, where appropriate, the amount of damages resulting from it.”
As for physical damage to people, the Administration, annually establishes a scale of allowances depending on the damage.
As for the damage, the Law 50/1980 provides in its various articles, the following:
Article 26. The insurance can not be unjust enrichment for the insured. To determine the damage will be addressed to the value of the insured at the time immediately prior to the completion of the incident.
That is, that while the insured is entitled to compensation sufficient to cover damages, such compensation shall not be greater, so that the insured could benefit.
Article 27. The sum insured represents the upper limit of compensation payable by the insurer in each incident.
This is important, i.e. the dollar limit listed in the policy reads for each case, and may not apply to all of several claims. If the limit is, say, a million should be, for example, 3 claims U.S. $ 3,000. Each, all are covered, as the amount of each is below the limit, although the total amount is exceeded.
Article 28. Notwithstanding Article 26, the parties, by agreement, may specify in the policy or after the conclusion of the contract the value of the insured to be taken into account when calculating compensation.
It is understood that the policy is estimated when the insurer and the insured it specifically accepted the value assigned to the insured.
The insurer may contest only the estimated value when acceptance has been given by violence, intimidation or fraud, or when the estimation error is significantly higher than the true value corresponding to the time of occurrence of the incident, posted by experts.
This means that, although usually the insured amount corresponds to the value of the object (the car value, for example) you can set a different value, if agreed by the company and the insured.
Article 29. If an express agreement the parties agree that the sum insured to cover the full value of the interest during the contract period, the policy must necessarily contain the criteria and procedure to adjust the sum insured and premiums to swings in the value of interest.
Interesting clause: if it has been agreed that the policy covers the entire value of the object (for example, the value of the car on own damage insurance), a criterion must be set to vary the price of the policy in terms changes in the price of the property. This means that if a car is depreciating (as so in reality), the premium payable will also reflect this, lowering the amount in this example. Please note, stating that will happen only when it is agreed between the company and the insured.
Article 30. If the production time of the accident the insured amount is less than the value of the interest, the insurer will indemnify the damage caused by the same proportion in which it covers the insured interest.
The parties, by mutual agreement, the policy may exclude or after the conclusion of the contract, the implementation of the proportional rule provided for in the preceding paragraph.
The famous proportional rule in this case applied to the underinsurance: If you make sure a car worth less than it is in fact to receive compensation when they will be smaller in proportion. An example: if a vehicle valued at € 18,000 is secured by a maximum of 12,000 euro’s, this will mean that the premium paid will be lower, for example, of 1,200 euro’s / year instead of 1,800 euro’s per year. But it also happens that in the event of an incident which generates a compensation of, say, 3,600 euro’s; in practice it would receive only 2,400 euro’s, applying the ratio.
Article 31. If the sum insured exceeds significantly the value of the insured, either party the contract may require the reduction of the amount and the premium, the insurer must repay the excess of the premiums paid.
If the occurrence of the accident, the insurer shall indemnify the damage actually caused.
When sobreseguro provided in the preceding paragraph was due to bad faith of the insured, the contract will be ineffective. The insurer in good faith may, however, retain the premiums due and the current period.
Now it refers to the possibility of sobreseguro, i.e. to pay a high premium because the car has been valued at more of the actual worth. In this case, two things can happen: first, we can demand the return of the amounts, adjusted to the actual value, so the premium will be reduced, and the company must return what he has received unduly. But if this case is given in bad faith of the insured, must be very careful: the policy is invalid, and the insured, in practice, not covered. Much attention to this aspect.
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