What is the Insurance Compensation Consortium?
The Insurance Compensation Consortium is a public entity at the service of the insurance sector. It is attached to the Ministry of Economy and Competitiveness and has its own legal personality.
When you take out your own or third party damage insurance extended with fire, theft or windows, a surcharge is added to the price paid by the policyholder. This surcharge will be paid to the Consortium by the insurance companies. The Consortium has these surcharges as main income.
Among other functions, the Insurance Compensation Consortium must be responsible for paying compensation for traffic accidents in some cases.
When can we claim compensation for an accident from the Consortium?
uninsured vehicle
In the event that the vehicle responsible for the accident is not insured, the Consortium will be responsible for compensation for injuries and material damage .
unknown vehicle
If the vehicle that caused the traffic accident has fled the scene of the accident and it has been impossible for us to identify it, the Consortium will pay compensation for personal damages.
Only in the event that the personal damages have been significant, the Insurance Compensation Consortium must also pay compensation for material damages, being able to set in this case a deductible not exceeding €500. Significant damages are considered: death, permanent disability or temporary disability requiring more than seven days of hospitalization.
It is important to note that in this type of accident it is essential to have evidence of its existence, which is why it is highly advisable to notify the Police at the scene of the accident and take the information of all possible witnesses . Although the vehicle that caused the accident is not at the scene of the accident, the Police will be able to verify that there are signs of the participation of another vehicle in the accident (broken glass, braking marks, etc…).
Insurance company in liquidation or insolvent
If the insurance company of the vehicle that caused the accident is in suspension of payments or has been declared bankrupt, the Consortium will indemnify the victims for both personal injury and material damage suffered.
stolen vehicle
When the vehicle responsible for the accident has been stolen, the Consortium will be responsible for compensation for both injuries and material damage.
The Insurance Compensation Consortium will not indemnify those persons who are voluntarily occupants of the responsible vehicle.
If the vehicle responsible for the accident has not been the object of a robbery but of a theft, it will be the insurance company of the same vehicle that will have to take care of the appropriate compensation.
Dispute between the insurance company and the consortium
The Consortium will compensate both personal injury and material damage to those injured in a traffic accident when there is a dispute about who should compensate the injured party.
If it is subsequently decided that it is the insurance company that should have paid the compensation, it will have to pay the Consortium the amount previously compensated plus legal interest increased by 25% from the date on which the compensation was paid.
If you have suffered an accident and the circumstances described above occur, fill out the contact form. We will study your case and help you claim compensation from the Insurance Compensation Consortium.