The insurers , in exchange for the premium paid by the policyholder, have a number of legal duties to the beneficiary of the insurance.
Basically the insurer must, once an accident occurred and investigated its causes, compensate the beneficiary not later than forty days after notification of the statement of claim . If you do not pay, the company will incur default by the insurer .
All this unless it is proven that the accident was caused by bad faith by the insured.
Law Insurance Contract
Law * reads:
Article 18
The insurer is obliged to pay compensation at the end of the investigations and surveys necessary to establish the existence of the claim and, where applicable, the amount of damage resulting therefrom. In any event, the insurer shall make, within forty days from receipt of the statement of claim, the payment of the minimum amount which the insurer may owe, according to the circumstances known to him.
When nature permits insurance and the insured consents, the insurer may substitute the payment of compensation for the repair or replacement of the damaged object.
Article 19
The insurer is obliged to pay the benefit, except in the event that the accident was caused by bad faith of the insured.
Article 20
If the insurer incurred in arrears in compliance with the provision, compensation for damages, however understood valid contractual terms which are most beneficial for the insured, shall comply with the following rules:
It -Afectará, in general, to the default by the insurer with respect to the policyholder or insured and, with particular character, the default on the injured third party in liability insurance and the beneficiary on life insurance.
It will be applicable to the delay in the satisfaction of compensation for payment or for the repair or replacement of the damaged object, and also the late payment of the minimum amount of what the insurer may owe.
He understood that the insurer is in default when not complied with the provision within three months from the production of the accident or has failed to pay in the minimum amount of what it might owe within forty days from receipt the statement of claim.
-The liquidated damages be imposed ex officio by the court and shall entail payment of an amount equal to the legal interest rate in effect at the time it is paid, plus 50% annual interest; This interest will be calculated on days without judicial claim.
But no, two years after the occurrence of the claim, the annual interest may not be less than 20%.
-In the repair or replacement of the damaged object based initial calculation of interest will be the net amount of such repair or replacement, without the lack of liquidity prevent start interest is due date in paragraph 6 below relates to . In other cases it will be initial basis for calculating the compensation payable or the minimum amount of what the insurer may owe.
Initial term'd computation of such interest the date of loss.
But no, if the policyholder, the insured or the beneficiary has not fulfilled the duty to report the loss within the period specified in the policy or, alternatively, in the seven days of meeting him, the initial term of computing will be the day of submission of the claim.
-Regarding the injured party or his heirs provisions of the first paragraph of this number shall be exempt if the insurer proves that he was unaware of the claim prior to the claim or the exercise of direct action by the injured party or his heirs, in which if initial term will be the date of such claim or exercise of that direct action.
Final term'd computation of interest in cases of failure to pay the minimum amount for which the insurer may owe, the day under the preceding number to begin to accrue interest on the total amount of compensation, except that advance is paid by the insurer said minimum amount, in which case the term will end date for this payment. It will end expiration of the obligation to pay interest on late payments by the insurer in the remaining cases the day that effectively satisfies compensation by payment, repair or replacement, the insured, beneficiary or injured.
No place to be liquidated damages from the insurer when the dissatisfaction of compensation or payment of the minimum amount is based on a cause or that is not due.
When the Insurance Compensation Consortium should pay the compensation as a guarantee fund be understood that in default only if within three months has elapsed since the date you are claiming compensation satisfaction without that the Consortium is having paid the same in accordance with its specific rules, not being applicable the obligation to compensate for late failure to pay the minimum amount. In the remainder, when the Consortium intervene as a guarantee fund, and without exception, when the consortium contract as a direct insurer, will fully apply this Article.
In determining compensation for default by the insurer shall not apply the provisions of Article 1108 of the Civil Code nor the provisions in the fourth paragraph of Article 921 of the Civil Procedure Act, except the provisions contained in that provision for total or partial revocation of the sentence.
* Law 50/1980 of 8 October on Insurance Contracts
Basically the insurer must, once an accident occurred and investigated its causes, compensate the beneficiary not later than forty days after notification of the statement of claim . If you do not pay, the company will incur default by the insurer .
All this unless it is proven that the accident was caused by bad faith by the insured.
Law Insurance Contract
Law * reads:
Article 18
The insurer is obliged to pay compensation at the end of the investigations and surveys necessary to establish the existence of the claim and, where applicable, the amount of damage resulting therefrom. In any event, the insurer shall make, within forty days from receipt of the statement of claim, the payment of the minimum amount which the insurer may owe, according to the circumstances known to him.
When nature permits insurance and the insured consents, the insurer may substitute the payment of compensation for the repair or replacement of the damaged object.
Article 19
The insurer is obliged to pay the benefit, except in the event that the accident was caused by bad faith of the insured.
Article 20
If the insurer incurred in arrears in compliance with the provision, compensation for damages, however understood valid contractual terms which are most beneficial for the insured, shall comply with the following rules:
It -Afectará, in general, to the default by the insurer with respect to the policyholder or insured and, with particular character, the default on the injured third party in liability insurance and the beneficiary on life insurance.
It will be applicable to the delay in the satisfaction of compensation for payment or for the repair or replacement of the damaged object, and also the late payment of the minimum amount of what the insurer may owe.
He understood that the insurer is in default when not complied with the provision within three months from the production of the accident or has failed to pay in the minimum amount of what it might owe within forty days from receipt the statement of claim.
-The liquidated damages be imposed ex officio by the court and shall entail payment of an amount equal to the legal interest rate in effect at the time it is paid, plus 50% annual interest; This interest will be calculated on days without judicial claim.
But no, two years after the occurrence of the claim, the annual interest may not be less than 20%.
-In the repair or replacement of the damaged object based initial calculation of interest will be the net amount of such repair or replacement, without the lack of liquidity prevent start interest is due date in paragraph 6 below relates to . In other cases it will be initial basis for calculating the compensation payable or the minimum amount of what the insurer may owe.
Initial term'd computation of such interest the date of loss.
But no, if the policyholder, the insured or the beneficiary has not fulfilled the duty to report the loss within the period specified in the policy or, alternatively, in the seven days of meeting him, the initial term of computing will be the day of submission of the claim.
-Regarding the injured party or his heirs provisions of the first paragraph of this number shall be exempt if the insurer proves that he was unaware of the claim prior to the claim or the exercise of direct action by the injured party or his heirs, in which if initial term will be the date of such claim or exercise of that direct action.
Final term'd computation of interest in cases of failure to pay the minimum amount for which the insurer may owe, the day under the preceding number to begin to accrue interest on the total amount of compensation, except that advance is paid by the insurer said minimum amount, in which case the term will end date for this payment. It will end expiration of the obligation to pay interest on late payments by the insurer in the remaining cases the day that effectively satisfies compensation by payment, repair or replacement, the insured, beneficiary or injured.
No place to be liquidated damages from the insurer when the dissatisfaction of compensation or payment of the minimum amount is based on a cause or that is not due.
When the Insurance Compensation Consortium should pay the compensation as a guarantee fund be understood that in default only if within three months has elapsed since the date you are claiming compensation satisfaction without that the Consortium is having paid the same in accordance with its specific rules, not being applicable the obligation to compensate for late failure to pay the minimum amount. In the remainder, when the Consortium intervene as a guarantee fund, and without exception, when the consortium contract as a direct insurer, will fully apply this Article.
In determining compensation for default by the insurer shall not apply the provisions of Article 1108 of the Civil Code nor the provisions in the fourth paragraph of Article 921 of the Civil Procedure Act, except the provisions contained in that provision for total or partial revocation of the sentence.
* Law 50/1980 of 8 October on Insurance Contracts