Following the events in Valencia and the rest of the areas affected by the DANA, PIB Group Iberia has prepared this post to inform you about how someone who has suffered material losses in such an extraordinary situation should proceed.
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According to data from the Valencian Ministry of Industry, more than 100,000 vehicles have been rendered unusable after the catastrophe. As for the exact number of homes destroyed, it is still unknown, but everything points to the fact that they are also counted by thousands.
Against this backdrop, a generalized doubt arises: Will those affected by the floods receive financial compensation, and who will pay for these expenses?
The answer has a lot to do with CCS. Do you know what it is? Don’t worry, we are going to explain it to you in detail. We will also tell you when the Insurance Consortium pays in cases of floods and how you can claim a claim from them.
What is the Insurance Compensation Consortium?
First of all, the Insurance Compensation Consortium (CCS) is a public body under the Ministry of Economy, Trade and Enterprise. This unique figure in Spain (it does not exist in other European countries) is in charge of compensating private insurance clients for damages that their insurers cannot take care of.
These damages always correspond to extraordinary risks, such as those caused by a natural catastrophe or those derived from political or social events.
And how is the Consortium financed? Well, mainly through surcharges included in the insurance policies issued by private companies. It is these surcharges that allow the CCS to guarantee its indemnities.
Functions of the Insurance Compensation Consortium
As mentioned above, the Insurance Compensation Consortium’s main task is to cover extraordinary risks, but this is not the only function performed by this entity.
It is also responsible for:
- Intervene in the liquidation of insurance companies declared bankrupt, guaranteeing compensation to those affected.
- Mediating in situations of financial crisis or structural problems in insurance companies.
- Collaborate with international organizations in risk management and in the development of global insurance regulations.
All these functions make CCS the best back-up in the private insurance market, as it protects insured citizens in all kinds of exceptional situations.
Deadline to claim to the Insurance Compensation Consortium
If you have suffered property damage due to a natural catastrophe such as the recent hurricane, you have insurance that protected the damaged property and you need to receive compensation from the Consortium, you must act quickly.
The deadline to claim to the CCS is a maximum of 7 years since the incident occurred. However, as they are absolutely saturated with the situation in Valencia, the Consortium has allowed the deadline to be disregarded on this occasion.
Our recommendation is not to wait too long. The sooner you start the process, the better: this will speed up the process and avoid possible complications.
If you have suffered property losses due to the windstorm, gather the necessary documentation to support your claim as soon as possible. Photographs, repair invoices or any other document proving your property damage are key for the Consortium to accept your claim without delay.
Form for requesting indemnity from the Insurance Compensation Consortium
And how to submit this claim to the Consortium? By filling out an official form. You can do it online through its electronic headquarters.
The Insurance Compensation Consortium claim form includes basic information, such as:
- Your personal data.
- The policy number of the affected insurance.
- A detailed description of the damage caused.
- Supporting documentation (photos, technical reports, invoices…).
If you have any doubts, you can always consult with your insurance company. Most companies have no problem in offering you their help for this type of procedure.
What extraordinary risks are covered by the Insurance Compensation Consortium?
As we have been saying, the Consortium only acts when the damage is caused by extraordinary risks that are not covered by private insurers. This is the case, for example, of:
- Catastrophes or natural phenomena, such as floods, earthquakes, volcanic eruptions or hurricanes ….
- Acts of political or social incidence, such as acts of terrorism, riots or popular revolts.
- Risks arising from nuclear accidents, provided they are not covered by another specific policy.
A brief reminder: although the CCS covers extraordinary risks, it is mandatory that you have an insurance policy in force (car or automobile, home…) in order to benefit from its coverage.
If you are looking for insurance for individuals that is worthwhile, counting on the support of a brokerage like PIB Group Iberia can be of great help. Trust our experience and professionalism and we will find the policy that best suits your specific needs.
How to notify the Insurance Consortium of a claim?
Now you know: notifying a claim to the CCS is easier than it seems. You can do it through the web page of the Insurance Consortium if you fill in the form we have mentioned before, or by telephone, calling 900 222 665.
Remember that at PIB Group Iberia we are at your disposal if you have any questions regarding your policies or your insurance company, call us if you need us!
Frequently asked questions about the Consorcio de Compensación de Seguros (Insurance Compensation Consortium)
I do not agree with the consortium’s indemnity, how do I proceed?
If you are not satisfied with the compensation you have been awarded by the CCS, you have right to file a complaint.
How does the Insurance Compensation Consortium pay?
CCS always makes payments directly, by bank transfer to the account number you have indicated in your claim. If everything is complete and in order, the process will be quick.
How long does it take to pay?
The time it takes to pay depends mainly on the complexity of each case, but it is usually between 1 and 3 months from the time the complete application is submitted.
However, in a situation as extraordinary as the one that occurred in Valencia, it is normal that the deadlines are lengthened due to the large volume of claims. Patience!
Are the indemnities paid by the Insurance Consortium taxable?
Of course not, the indemnities you receive from the Consortium are exempt from taxation in your income tax return. After all, they are not income, but economic compensation for losses.
Does home insurance cover floods or natural catastrophes?
Yes, but with nuances. Although your homeowner’s policy may cover damages caused to a certain extent, in cases of extraordinary risks, such as floods, it is the Consortium who assumes that responsibility.
