Thanks to Law 35/2015 “on the reform of the system for the valuation of damages caused to persons in traffic accidents” or, better known as. “the law of the schedule of rates”, on January 1, 2016, new tables were introduced that mark the compensations to be paid to victims of traffic accidents on our roads.
What’s new in the reform of the Schedule
In this way, the regulation that has existed since 1995 is modified. This regulation did not contemplate certain cases that take place in our society, such as: compensation for single-parent families or for children born out of wedlock, for example.
How do they vary?
- death benefits will be increased by an average of 50%,
- compensation for sequelae will increase by approximately 35%; and
- The increase in injury claims will be 12.8%.
Despite this, the means of proof are tightened and the requirements for minor injuries are increased, which could lead to a reduction in payments in these claims, which are the most frequent. Therefore, this reform, which comes into force on January 1, 2016, is not without controversy.
Consequences of this amendment on auto insurance
It is the insurance companies who are responsible for this increase in the indemnities paid out. As a result, they increase the premiums charged on their automobile insurance policies.
The insurers intend to share this added cost between themselves and the policyholders. As a result, insurance renewals are expected to increase across the board.
Reaction of Victims’ Associations
Victims’ associations have already reacted to this change announced as early as September this year in a very optimistic manner. They were present, through their representatives, at the commission that studied the introduction of this regulatory modification.
This result is the result of 4 years of work, between 2011 and 2014. In the same way that the Bar Associations are satisfied with the change, understanding that certain injustices were taking place, which could be solved by introducing these modifications. Again, we warn of the problems that may be caused in minor injuries; but it is true that serious accidents are improved for the victims.
To learn about these and other legislative changes affecting your insurance, PIB Group Iberia will keep you informed, trying to provide the best possible service and advice to our policyholders. If you want to quote your car insurance for individuals, and benefit from our special rates, please contact us.
