Guide on insurance in Spain

By | June 28, 2016

Before going into the different types of insurance of interest for the self-employed, professionals and SMES, Yong Wai Meng is showing you a brief summary of the legal regulation of the contract of insurance in Spain.


The insurance contract is the one for which the insurer undertakes, by charging a premium and for the case that the event occurs for which the risk is covered, to indemnify, within the limits agreed, the damage caused to the insured or to satisfy a capital, an income or other benefits agreed.

This contract can be held in the classroom or at a distance (internet, telephone, etc.). In the latter case requires that there is a prior information before its formalization and recognizes a right of withdrawal of the consumer prior to its signature. In any case it is important to take into account certain advice before recruitment.

The duration of the contract shall be agreed upon by the parties, although fulfilling certain deadlines and upon prior written notice, it is the renunciation of its extension.

In the event of being governed by the Spanish law, the regulation of contract is dispersed, although it is mostly contained in Act 50/1980, of the insurance contract.

Elements of insurance

The main elements of the contract of insurance are the following:

  1. The insurer is the entity that has, among other obligations, to compensate the loss and perform the agreed benefits when it occurs the fact insured.
  2. The policyholder, the insured and the beneficiary. The policyholder is the person who contracted with the insurer, by signing the policy and agreed to the payment of the premium. The Insured is the person with a direct interest in the insurance and on whose life or property lies the contract. The beneficiary is the holder of the right to compensation.

Taker, insured and the beneficiary can match or be people distinas. In any case, as occurs with the insurer, are subjected to a series of rights and obligations.

  1. The policy, including the general and particular conditions, is the document in that it formalizes the insurance contract.
  2. The premium is the provision or price that the monetized policy holder must pay as consideration of the assumption of risk by the insurer.
  3. The risk is the possibility that the harmful event occurs and is therefore the cause of the contract.

In the field of insurance claims

In the event of discrepancy with the insurer, the consumer or user of insurance has several avenues of complaint:

  1. Complaint to the InsurerModel of Claim
  2. Complaint to the Commissioner for the Defense of the InsuredModel of Claim
  3. Claim via the Consumer Arbitration System
  4. Judicial Claim

Types of insurance for the self-employed, professionals and Smes

In function of the asset insured, tend to distinguish between the two types of insurance: damage insurance and insurance of persons.

Damage insurance in the Company

The insurance compensation of damage are objective in that its amount, variable in each case is determined after the incident occurred and according to the material damage suffered by the insured, valued in an objective manner.

Has certain peculiarities with regard to the general regime, among which we highlight those standards that relate to the assessment of the damage and the appointment of third expert, the transmission of the insured object, the subrogation of the Insurer against the persons responsible for the damage, or figures in the secure multiple, infraseguro, sobreseguro and of co-insurance.

Within this modality, the insurance More common are the following: civil responsibility insurance, credit insurance, legal expenses insurance, credit insurance, insurance for loss of profits for companies, theft insurance, insurance for land transport or fire insurance.

Personal Insurance

In the confident people, unlike the previous ones, the risk refers to the existence, bodily integrity or health of the insured, distinguishing itself in addition in the economic valuation of the interest insured, which is based on different criteria.

Highlight the life insurance, in whose policy is protected, either death or the survival of the insured, or both events together, and the accident insurance, sickness and health care.

Life insurance have certain peculiarities regarding the general regime, among which we highlight those that relate to the appointment and dismissal of the beneficiary of the payment, early cancellation of insurance, payment of the premium, redemptions and advances, assignment of the policy, inaccuracy of the statements of the policyholder and the bankruptcy of the policyholder, making special reference to the new registration of contracts of insurance coverage in the event of death.

Rates and amounts of compensation

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