Do you want to know what is Compulsory Civil Liability ? It is the minimum insurance that can be contracted, and it is mandatory. When this coverage is contracted , the driver ensures that the company will be responsible for the damages caused to third parties. Damage to third parties means:
- Material damage to things and injuries suffered by animals. (Examples: damage caused to another vehicle, impacts against urban furniture, traffic signs, shop windows, injuries and wounds to animals traveling in another vehicle involved…).
- Physical damage to people (for example, running over a pedestrian, damage to the driver of the other vehicle…).
COVERAGE LIMITS
From January 1, 2008, each time an accident occurs, in which the insured himself is guilty of the same, the maximum that the company covers with the Compulsory Civil Liability will be:
- For physical damage to people: up to 70 million euros per claim, regardless of the number of victims.
- For material damage : up to 15 million euros per claim, regardless of the number of vehicles or goods affected.
- Note: Before January 1, 2008, with the entry into force of the V European Car Directive (approved by Law 21/2007), the amounts were much lower, hence the insurers had an additional coverage called Compulsory Civil Liability , since until that date, the coverage was up to 350,000 euros for physical damage to people, and up to 100,000 euros for material damage and How much does Tesla insurance cost?.
ASPECTS NOT COVERED
The Compulsory Civil Responsibility will not cover in any case for the damages produced to the own vehicle (own damage), nor to the driver contemplated in the policy (driver’s insurance), and Armenian insurance settlement. since as we have already explained, this is a third-party insurance.
Because the compensation offered is very high, some people try to swindle their insurance trying to collect a significant amount of money, for these cases the Law provides an exception in which the Compulsory Civil Liability insurance does not cover damages to third parties . The regulations say this:
- “Material damage whose owners are the owner, policyholder or driver of the insurance, or their spouses, or their relatives up to the third degree of consanguinity or affinity, are not covered.”
- This means that there are many people involved, and very close, who will not be entitled to the coverage of the Compulsory Civil Liability , so if we are going to circulate near a family member on a trip, it is advisable to exercise extreme caution and distances are controlled, because a collision between the two vehicles would not be covered by third-party insurance.
- Insurers take these measures to avoid fraud , where the closeness of a family member is used to make a fictitious part.
- However, unlike material goods, damages to people are ALWAYS covered, since it is assumed that no one will intentionally cause harm to a family member.
OTHER DAMAGES NOT COVERED
In the previous section, the main thing has been named, however, there are more aspects that should be known that are not covered. Let’s look at an example:
Suppose a driver collides with a store window, these damages will be covered by the Civil Liability insurance . But what would happen, if the repair of said window lasts for several days, in which it is necessary for a security guard to stay all night in the place so that the merchandise of the store is not stolen. In this case, the insurer will not be responsible for these expenses, but the user will have to pay them.
CLARIFICATION
Finally, another case that is not covered by the mandatory insurance and that raises some doubt is when the insured vehicle is stolen, and the person responsible for the theft has an accident with it.
In this case, the compulsory insurance will not cover anything at all . Obviously, the owner of the car will not have to pay for the damage either. In these cases, it will be the car thief, or if it is insolvent, it will be paid by the Insurance Compensation Consortium.
CONSEQUENCES OF NOT HAVING INSURANCE
Compulsory Civil Liability insurance is, as its name indicates, mandatory. The rest of the coverage is voluntary, so it is the only insurance required by the Authority. In case you don’t have it:
If requested by the authority:
- An administrative financial penalty will be imposed. This will be imposed by the authorities. The amount can vary between 301 euros up to 3,005 euros and will depend on whether or not the car was circulating, the service it provides, the seriousness of the possible accident, etc.
- Immobilization and sealing of the vehicle: This implies the impossibility of moving it until the fine is paid and compulsory insurance is available. The minimum period of immobilization is one month, or three months in the event of a repeat offender. In case of breaking this rule and continuing to circulate with it, the immobilization will be for one year.
- In the event of an accident: in addition to all of the above:
- Pay compensation for all material and personal damage caused to third parties.
WHAT IF NOBODY WANTS TO INSURE ME?
Sometimes companies refuse to insure a user for different reasons, not even with compulsory insurance . The reason is usually due to their inexperience behind the wheel, due to their young age, or because the vehicle being insured is a high-end sports car, etc.
If we were to encounter this type of situation and due to the obligation to have our vehicle insured, we would have to go to the Insurance Compensation Consortium with the sealed refusals of up to three companies that have refused to insure our vehicle.