What is the insurance compensation consortium?
The Insurance Compensation Consortium (also known as the ‘CCS’), a compulsory Government catastrophic risk insurance in Spain, is a public business entity defined as an instrument for the Spanish insurance sector and is part of the Ministry of Economy, Trade and Enterprise, through the Directorate General of Insurance and Pension Funds.
What is the role of the CCS?
The Consortium is responsible for compensating policyholders in cases of extraordinary risks, i.e. those that are not covered by commercial insurers.
What events does the CCS cover?
- NATURAL DISASTERS
- ACTS OF TERRORISM
- ACTIONS OF THE ARMED FORCES OR SECURITY FORCES DURING PEACETIME
Since 2006, these covered events have also been extended to life and accident insurance.
What requirements must i meet to be covered by the CCS?
All life insurance policies are covered by the Consortium as long as the policies meet the requirements:
- Life and accident insurance policies should have death cover and supplementary disability cover.
- Life or accident insurance subject to a pension plan is also covered in the case of extraordinary events.
How does the CCS work?
The Consortium compensates for damage caused by Extraordinary Risks (natural disasters and events of a political or social nature), on the condition that they have taken out a property damage, life and/or accident policy with any insurance company.
What happens if my policy already covers these damages?
In this case, the injured party must claim directly from their insurance company, which explicitly covers this risk and will be responsible for paying the relevant compensation reflected in the policy.
What happens if my policy does not cover these damages?
It is essential to point out that, although the policy does not reflect the coverage of these damages by the insurer, all these policies are covered by the Consortium.
In this case, the holders of this type of insurance have to make the pertinent claim for this coverage to the Consortium of Insurance Compensation.
What are the requirements for applying for the CCS?
For access to CCS coverage it is required that the person or property affected must be insured and have their insurance in force at the time the extraordinary event occurs. This fact must be accredited in the application for compensation to the CCS.
What damages does the CCS compensate for?
- Damage caused to insured persons.
- Damage to insured goods, whether they are properties, vehicles, office premises; commercial and service establishments and other non-industrial properties; industries; and civil works and infrastructures.
How much will the CCS compensate me with?
The CCS shall pay compensation in accordance with the sums insured and the terms of the insurance contract of the person concerned.
The CCS compensates both the material damage caused by the flood as well as the immaterial damage resulting from the flood, such as, for example, the loss of rental income of property owners, accommodation expenses due to the uninhabitability of the home, or the loss of income due to the paralysis of commercial, service or industrial establishments, all in the terms provided in the insurance contract of the affected party.
Applying for compensation from the CCS
Claims for compensation may be submitted directly by the affected insured person themselves or, on their behalf, by their insurer or by their insurance intermediary (agent or broker).
The CCS will register and manage all compensation claims it receives from insured persons, even if the 7-day period provided for in the insurance legislation has elapsed since the damage occurred.
