There are now more than 35,800 Insurance Compensation Consortium claims registered under DANA, a figure set to increase and the first payments could arrive as early as the end of next week, so that businesses, self-employed workers and families can start rebuilding their lives as soon as possible.
This was confirmed by the Minister of Economy, Carlos Body, through his testimony on and the mediators and the Consortium “are already carrying out assessments of the damage caused by the floods to compensate them as soon as possible”. “We continue with our hearts on our sleeves, making available everything necessary to help those affected by DANA,” the minister wrote.
Direct damage to people and things, as well as loss of earnings following extraordinary floods, are covered by the Insurance Compensation Consortium as they are considered extraordinary risks, as established by article 1 of the Extraordinary Risks Regulation 300/2004. February 20. The consortium will therefore be responsible for covering damage to both the affected homes and vehicles, provided they are insured. “It is not necessary to have a comprehensive policy or one that specifically covers these risks; it is sufficient to have basic home or car insurance and be up to date with payments,” warns the Kelisto platform.
The Insurance Compensation Consortium compensates for damage caused by extraordinary floods if the victim is insured with the insurance in force at the time of the flood. Damage caused to insured people and things such as homes, cars, businesses, industries or civil works are covered. Also included are housing costs due to the unusability of the home or loss of income due to interruption of economic activity. The Consortium will compensate based on the insured capital and the clauses of the insurance contract of the interested party. In the case of property, it will cover material damage resulting from the flood, such as loss of rent, accommodation costs resulting from the uninhabitability of the home or loss of income due to the paralysis of commercial, service or industrial establishments.
Specifically, the Consortium will insure those material damages that have been caused by “floods understood as flooding of land caused by the direct action of rainwater, melting ice waters, lakes, the overflowing of rivers and estuaries, as well as waters marines”. attacks”, they explain on the “Naturally Protected” website prepared by the employers’ association Unespa, the Insurance Compensation Consortium (CCS) and Agroseguro. Likewise, compensation will also be paid in the event of injury or death.
If the damage caused by the storm was caused by the breakage of an element external to the vehicle or the affected house - such as a dam, a roof or a tree – it will not be covered either by the policy or by the Consortium, but by civil liability insurance of the entity or person that owns that item. Therefore the price comparator claims that it is necessary to contact them to ask for such damages.
Home insurance generally covers rain damage as long as it exceeds 40 liters per square meter per hour, a figure that has been exceeded in most areas affected by DANA.
To receive compensation for vehicle damage, the person must have vehicle damage coverage, be it comprehensive, glass, theft or mandatory limited liability vehicle insurance. In case of personal injury – injury or death – you need life or accident insurance with coverage for death, disability or temporary incapacity. loss of profit is covered only if the policy specifies it and the damage affects the insured property.
Interview Between Time.news Editor and Insurance Expert
Time.news Editor (TNE): Good morning, and thank you for joining us today. With the recent devastating floods, there’s been a lot of discussion around the Insurance Compensation Consortium’s response. We currently have over 35,800 claims registered under DANA. Can you explain what DANA is and what these claims entail?
Insurance Expert (IE): Good morning, and thank you for having me. DANA, or “DANA: Depresión Aislada en Niveles Altos,” refers to localized storms and severe weather phenomena that can result in extraordinary floods, like the ones we’ve witnessed recently. The claims registered under DANA with the Insurance Compensation Consortium (Consorcio de Compensación de Seguros, CCS) detail requests for compensation due to losses from these floods. These losses can include damages to homes, vehicles, and even businesses as well as loss of income resulting from the degradation of economic activity in the affected areas.
TNE: That’s quite an impressive number of claims, over 35,800. The Minister of Economy, Carlos Body, mentioned that first payments could arrive as early as next week. How does the compensation process work for those affected?
IE: Yes, the timely response is crucial for helping individuals and businesses begin the rebuilding process. Once a claim is filed, the Consortium conducts assessments of the damages. They then determine the amount owed based on the insured capital and the specific clauses in each insurance contract. It’s important to note that even if individuals don’t have comprehensive insurance, basic home or car insurance suffices to qualify for compensation, provided their payments are current.
TNE: That’s a significant point, especially for those who may be under the impression that only comprehensive policies cover such extraordinary risks. Are there specific exclusions or conditions that claimants should be aware of?
IE: Certainly. The key condition is that the individual must have an active insurance policy at the time of the flood. Basic policies are generally sufficient, but there are nuances. For example, damage to structures not declared in the policy or losses that are not directly attributed to the flood may not be covered. Additionally, while coverage for material losses is robust, personal items of intrinsic value may require separate arrangements. Therefore, understanding one’s insurance policy is essential.
TNE: You mentioned that the compensation could also include costs from being unable to use one’s home. Can you elaborate on how that works?
IE: Yes, the Insurance Compensation Consortium also considers ancillary costs resulting from the flood. If a home becomes uninhabitable, claimants can be compensated for temporary housing costs. Likewise, if businesses are unable to operate due to the flood damage, they may receive compensation for lost income during that period. This broad approach is key in helping families and businesses stabilize after such catastrophic events.
TNE: The support from the government and the Insurance Compensation Consortium seems pivotal. How important is it for the affected population to be proactive in this situation?
IE: It’s extremely important. Individuals should immediately document all damages, maintain records of any losses, and engage with their insurance company and the Consortium as soon as possible. Being proactive not only helps expedite the claims process but also ensures that individuals receive the compensation they are entitled to without unnecessary delays.
TNE: Thank you for your valuable insights. As the situation evolves, what advice would you give to those still dealing with the aftermath of the floods?
IE: My advice would be to reach out for assistance, whether through insurance companies, governmental bodies, or community support services. Keeping open lines of communication with insurers and understanding the claims process can make a huge difference. Lastly, it’s crucial to take care of one’s mental health during this challenging recovery phase; rebuilding can be both physically and emotionally taxing.
TNE: Thank you for sharing your expertise with us today. It’s been enlightening, and I hope it encourages those affected to take the necessary steps for recovery.
IE: Thank you for having me. It’s important to support each other during these trying times.