Commercial Automobile Liability Insurance
It is the minimum insurance may be hired, and has a basic characteristic: it is obligatory, ie, that the law requires to have contracted this type of insurance at least to be able to move with a vehicle. Therefore, not having this insurance is the detention and a fine.
CONCEPT
By hiring this coverage the user is assured that the company assumes responsibility for any harm caused to third parties. Who are these others?:
- Damage to things and animals (for example, damage to another car, a lamp, a window, the neighbor’s dog …)
- Physical damage to persons (eg running over a pedestrian)
Now the next question would be:
“Without any limit?
Yes there are limits, and also imposed by law From January 1, 2008, for each incident that occurs, in which the user himself is guilty of the same, the most that covers the company is:
- For personal injury: up to 70 million euros per claim whatever the number of victims.
- For property damage: up to 15 million euros per claim whatever the number of vehicles or property involved.
WHAT IS NOT COVERED
Obviously, that coverage does not cover any damage itself, ie not the user (that’s what the driver’s insurance), or your car (own damage) because it is a safe “third parties” for the other .
Because in this “blessed” country also tends to be cases of rascals, trying to fraud, the Act contemplates a situation in which the Compulsory Liability Insurance does not cover damage to others, so that the legislation goes something like :
Damage to property (material things) whose owners are the owner or driver of the insurance policyholder, or their spouses or relatives of these to the third degree of consanguinity or affinity, are NOT covered”
Words, and speaking clearly not cover damage caused in an accident at another car (say a material) if it is parents, siblings, aunts, grandparents, brothers, sisters.
And in addition to the above, neither the spouse nor would cover those for the Policyholder, drivers and owners listed in the policy if they are different people.
That is, doing the accounts, is many people, and very close.
It may be that, unwittingly, a user has an accident with his brother or cousin, in that case would not be covered by insurance. This is done to prevent fraud, because if someone wants to defraud the company, you can always grab a family to make a”part.” Although it is said,”every law loophole”because there is always a good friend for this. Because it is clear that the family relationship is imposed, but the friendships, for the moment, no.
Yes, at least the damage people are always covered, presumably because no one will intentionally harm a family member (forget the mother), even though their relationship is not too good.
Tip: If you ever are driving in convoy with other family members, one of two, or kept a safe distance and driving is very attentive, or better put other intermediate cars, not going to be that the law seeks to prevent fraud and it has the misfortune of having an accident with a family member accidentally.
WHAT DOES NOT COVER
In the previous section has numbered the main, however, have been more things not covered by this insurance and to know, is going to do with the following example:
Suppose that a driver has an accident against a shop window. However, the Compulsory Liability Insurance will pay the damages caused in the window, but if, for example, the repair is done several days later, and it is necessary to hire a security guard to stay overnight in the shop window not to steal the “gender” of the store.
Who pays the watchers?
As the user, because that is not covered by Compulsory Third Party Liability Insurance.
CLARIFICATION
Finally, clarify a concept that is often not very clear and if the car is stolen and the person who steal have an accident with him.
In this case, the insurance (mandatory liability) does not cover anything. But do not worry, because the car owner will not pay anything either. In this case, or is the thief of the car (because it is not safe) or, if it is insolvent (normal, because a thief does not have much money), will pay the Insurance Compensation Consortium.
CONSEQUENCES OF NOT TO HAVE INSURANCE
The consequences of not having contracted the compulsory liability insurance (the only one that may be required, other coverage is voluntary) are (assuming the worst case bad):
1. If requested by the Authority:
- Economic Administrative penalty: that is to be imposed by the Authority (Local Police or Guardia Civil Traffic), the amount may rise between 601-3005 euros, which will vary depending on whether the car was or was not outstanding, service provided, severity of loss if any, etc.
- Sealing the vehicle: that means not being able to move until such time as is established in Traffic has paid the fine and already have insurance. The detention of the car will be for a minimum of one month, unless it is recurrent, in which case three months, or breach of the obligation of restraint (ie the car is fixed and we cazen”circulating” with him), who will be ONE YEAR.
2. In case of accident: In addition to the above:
* Pay all personal and material damage caused to third parties.
What if no one I want to assure?
Sometimes companies refuse to insure a user, ie do not even accept the compulsory civil liability insurance. The reason usually is produced by limited driving experience (less than 2-5 years-old card), or their young age (under 25 years, although there are companies in which it is based on 27 or even more ), or by the vehicle to secure (power to weight ratio high, ie style cars Ferrari, Porsche, Lamborghini … and not as expensive nor as new as the Renault 5 Copa Turbo, Lancia Delta Integrale .. .).
When this happens, and as there is no choice but to have such insurance, there is a public entity is responsible for “collecting” all these people than any private company wants. This entity is called the Insurance Compensation Consortium.
