The Compensation Consortium already protects all insured cars in case of catastrophe

The Compensation Consortium already protects all insured cars in case of catastrophe

  • On Friday, July 1, a resolution of the Directorate General of Insurance (DGS) came into force, which includes this and other developments.
  • The 6.5 million vehicles that are insured only with the basic policy and that until now did not contribute to the CCS will have to start doing it.
  • The insurers themselves are responsible for feeding the coffers of the CCS through an amount or surcharge that is charged to the insured.

Image result for cars in catastrophe

 

 Vehicles submerged after a flood. 

The Insurance Compensation Consortium (CCS) already protects, in the event of catastrophe, all vehicles that have taken out an insurance of any kind, and not only those who have a full risk policy, as up to now.

All this thanks to the fact that on Friday, July 1, a resolution of the Directorate General of Insurance (DGS) came into force, which includes this and other developments.

On the one hand, the Consortium reduces from 2% to 1.5% the annual contribution that insurers make to their coffers through policies at all risk, due to the good health of the agency’s accounts due to the lower accident rate in the last years.

But the more than 6.5 million vehicles that are insured only with the basic policy – the mandatory civil liability – and that until now did not contribute to the CCS will have to start doing it to be covered in case of natural catastrophe.

These additions will mean more income for the Consortium, and that is precisely what allows you to reduce the contribution of policyholders with the most complete policies, as third parties with franchises or any risk.

And in the event that voluntary insurance coincides, be it civil liability or personal damages, with a civil liability insurance for the compulsory subscription of the car, only a surcharge would be obligatory, explains the resolution.

 

Image result for cars in catastrophe

Public entity

The Insurance Compensation Consortium is a public entity, which depends on the Ministry of Economy through the General Directorate of Insurance and Pension Funds and functions as a kind of insurance guarantee fund for certain incidents.

The insurers themselves are responsible for feeding the coffers of the CCS through an amount or surcharge that is charged to the insured and that serves so that the agency can take charge of the damages in case of catastrophic loss.

When a natural catastrophe occurs, such as major storms, floods, earthquakes, or damage to agricultural crops due to rain or hail, the Consortium pays an amount to those who have insurance in force to help cover the losses suffered in the accident.

The body was born provisionally in 1941, to respond to the compensation needs caused by the Civil War (1936-1939) In the case of car insurance, the agency also deals with the mandatory coverage of those who have not been Accepted by insurers and also covers damages caused by unknown vehicles, without insurance or stolen.

According to the data shown on the CCS website, the rate for extraordinary risks is an annual amount that is applied to the insured capital and depends on the loss.

For example, for damage to homes and communities of owners , it would amount to 0.08 per thousand of the insured capital; while for office damage it would be 0.12 per thousand; for shops, shopping centers or warehouses, 0.18 per thousand and for automobiles would be a fixed amount depending on the type of vehicle (for passenger cars, 3.50 euros).

The organization was born provisionally in 1941, to respond to the compensation needs originated by the Civil War (1936-1939) and was called Consortium of Mutiny Risk Compensation , and it was not until 1954 when it acquired a permanent character.

Throughout its history, the entity assumed other tasks such as those related to export credit insurance, combined agricultural insurance, compulsory insurance of civil liability of automobiles, compulsory insurance of travelers , the hunters and the of civil liability for nuclear risks.

In addition to the coverage offered by the CCS in certain branches to the damages caused by certain natural events such as cyclones, earthquakes or floods, it also acts to cover political-social incidents, such as terrorism, civil liability of the Armed Forces and Security Forces of the State and that are not assumed by private insurers.