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How the INSURANCE COMPENSATION CONSORTIUM works following a natural disaster in Spain
Nov 6, 2024
Just as the devastating rain and floods had taken hold in the Valencia region last week, Ignacio and Pedro from @Pellicerheredia were in with Kal to reflect on the situation. There will come a time when insurance claims are filed and the State run INSURANCE COMPENSATION CONSORTIUM comes into play following a natural disaster such as this. You can find out more (in English if required) on the website https://www.consorseguros.es/ There was also an extraordinary story from Ignacio on some detective work they had to carry out recently to trace beneficiaries of a will where no names or contact details had been left by the deceased relative. Be sure to Like 👍 this and Subscribe to our channel if you found it useful. You can see more at www.alicantelawyers.es, where you can also watch back some of their previous webinars covering a whole range of topics. Website: http://www.bayradio.fm/​ Mobile App: https://app.appinstitute.com/yddcc​ Facebook: https://www.facebook.com/BayRadioInSpain​ Twitter: https://twitter.com/bayradioinspain​ Instagram: https://www.instagram.com/bayradiospain/
View Video Transcript
0:00
we're just hearing from the central
0:02
government that three days of mour have
0:04
been declared in Spain as the number of
0:06
those killed in the devastating floods
0:09
have hit 72 the Spanish government made
0:12
the announcement and the country is
0:15
faced with the worst natural disaster in
0:18
50 years joining me in the studio this
0:21
afternoon Pedro and ignatio from p and
0:23
Heria alakan
0:26
lawyers. the news just seems to get
0:28
worse hour by hour gentlemen mhm yeah
0:31
yeah it's been a terrible terrible from
0:33
yesterday it's been terrible news the
0:36
forecast and and I heard that might be
0:39
raining still there is rain still due in
0:42
some areas worse north north of Valencia
0:46
we hope but um yeah still in the town
0:48
around the town uh the devastation and
0:50
the pictures that we've been seeing
0:52
today are just devastating it is a
0:55
tragedy I remember probably almost 40
0:58
years ago I remember that in 1982 1983 I
1:02
remember we had the same situation uh we
1:05
were I was a child and and it happens
1:08
all the same and obviously it's a
1:10
tragedy uh we send our support and our
1:12
condolence to the families but it's a
1:15
tragedy that obviously give your
1:17
thoughts in order to say what what
1:19
should have been done before yes that
1:22
certainly has been mentioned today
1:25
already there are some questions about
1:27
certain Emergency Services uh being
1:30
cancelled in the Valencia region when
1:32
the last government came into Power
1:34
regionally uh I'm I'm sure we'll hear a
1:36
lot more about that in the uh coming
1:39
days but uh that as the country comes
1:42
used becomes uh rather uh to deal with
1:45
the situation King Felipe uh I 6 has
1:48
spoken of the enormous destruction to
1:50
infrastructure he's warned that there is
1:52
still difficulty accessing some areas
1:54
earlier Spanish prime minister promising
1:56
residents in affected areas we won't
1:58
abandon you but said this devastating
2:00
episode isn't over so some areas still
2:03
likely to receive more rain in fact
2:04
across Valencia some more rain expected
2:07
but perhaps nothing like what we saw in
2:09
the last 24 hours for the Valencia
2:11
region let's hope not certainly um but
2:14
um you know these things are happening
2:17
more and more floods uh climate change
2:19
uh being the culprit according to a lot
2:22
of scientists um some people uh dispense
2:26
with that and say we get these cycles
2:27
and these things uh tend to happen but
2:29
but we have seen in the past certainly
2:32
in Javier it was about 14 years ago I
2:34
think some some quite devastating floods
2:36
thereabouts um and things can be done
2:40
can't they you know the clearing of
2:41
riverbeds certainly seems to be
2:42
something that should be done but we do
2:44
see again and again it was in in vedor a
2:47
few years ago where there was a local
2:48
market in in a street that was known to
2:51
flood during rainstorms and that
2:53
happened there as well and it seems that
2:55
these things don't live very long in
2:57
people's memories you know that's right
2:59
I me I mean at the end this has to be um
3:03
un thought and Bri and and people I mean
3:06
governments just to to study why this is
3:09
happening why do we have buildings in
3:11
places that we shouldn't have built
3:14
anything and obviously these situations
3:16
is is is alarms everyone but at the end
3:19
we need to understand why this happening
3:21
if there a mistake from from governments
3:24
mistake from uh the planning on the
3:26
buildings or the cities and the
3:27
municipalities and emergencies and
3:29
everything I mean obviously there are I
3:30
think that are more than 60 people have
3:32
died at this time so it's something that
3:35
is relevant in know to to study all this
3:37
and I understand all of them has lost
3:39
many of them has lost their houses and
3:43
um and something that is is is relevant
3:46
in order to to to check what what has
3:49
been done unproperly yeah and of course
3:52
we'd have to say that it is successive
3:53
governments um you know both sides have
3:55
been in power in whilst these things
3:57
have been happening and I guess you if
4:00
we're told that these situations are set
4:02
to continue really some work needs to be
4:05
done on how we deal with them in the
4:06
future meanwhile uh Pedro what about
4:09
those who have been affected um do
4:12
insurance companies in Spain cover flood
4:14
damage uh to homes for instance yeah at
4:17
the end I mean most I would
4:19
say more than 90% of people has a house
4:22
insurance house insurance normally if
4:24
you check the policy will not cover
4:27
specifically the natural disasters like
4:30
flaw like I don't know heal weats like
4:33
any natural disaster will not be
4:35
included um in a insurance policy but
4:38
does not mean doesn't covered it is
4:40
covered because it is covered by the
4:44
cons all right so if it's not covered by
4:46
your own insurance company that is
4:48
covered because you have an insurance
4:49
which obviously your insurance pay some
4:51
money to the sort of the comp so it
4:54
really is covered but it will be paid by
4:57
this public entity public company so
5:00
that would be the insurance compensation
5:04
Consortium that's exactly so um so if
5:07
you have an house insurance that's
5:09
perfect because in that case it covers
5:11
that
5:13
cons and you know in terms of uh well
5:16
validate which is the damage which is
5:18
the uh the compensation that you need to
5:19
do obviously uh up to the cover amount
5:23
that you have inct to your insurance so
5:25
you have to have had Insurance in the
5:27
first place to qualify imagine an
5:29
insurance of that covers your property
5:31
of €150,000 but your property is really
5:34
€300,000 value and your property uh
5:37
collaps because of a fla that goes down
5:39
I mean the the compens conservative
5:41
compens SE will just pay up to € 150,000
5:45
not the value of a property so this this
5:47
is why it's important to valuate
5:50
properly uh and and cover properly what
5:53
you want to
5:55
protect okay what about vehicles are
5:57
they covered as well yeah I mean uh
6:00
every natural disaster that the M
6:02
happens I mean the vehicles property and
6:05
insurance policy normally this is
6:08
covered okay it's like a reassurance is
6:11
like a reassurance yeah reassurance uh
6:14
so you have your own insurance and then
6:17
you pay on a monthly basis to be
6:19
reassured okay so so for those who have
6:23
home insurance now or just the vehicle
6:26
insurance that should be covered by
6:27
their insurance company which they don't
6:29
really pay for it they they only deal
6:32
with and they are like the middleman
6:35
with the
6:36
Consortium um agency I will call it um
6:41
the problem will be for those who do not
6:43
have an insurance and only need to deal
6:45
with a Consortium which is a different
6:47
battle you know so do you do this in the
6:49
normal way as you would with any type of
6:52
accident or or disaster situation you
6:54
take photos of the damaged property or
6:56
vehicle and then claim through your own
6:58
insurance company or do
7:00
well it could be it could be done in
7:01
both ways I mean your insurance company
7:03
or you do it directly to the consult
7:06
comp it's a web page Google consult comp
7:09
you get access to that and will be
7:11
obviously direct line with them but
7:14
obviously there are two ways with your
7:15
insurance they they manage with that or
7:17
or directly with a with the with a
7:20
public administration which is a public
7:21
entity in this case Okay um yeah I mean
7:25
also I mean I guess you could check with
7:26
your insurance company itself to give
7:28
you some idea of of what you many of
7:31
them would recommend you to do it
7:32
directly yeah okay um so yeah I was
7:35
going to say is there anything uh that
7:38
uh uh people uh can can do uh to uh get
7:42
compensation during the emergency
7:44
situation can you get immediate help
7:46
perhaps is that possible immediate well
7:48
that's no I I would like to think yes
7:52
but I don't think it depends on your
7:54
policy I would say I don't know whether
7:57
your insurance will cover or anticipate
8:00
money cover eventually for the uh
8:03
Consortium I think it depends on the
8:05
government um declaring a catastrophic
8:08
situation perhaps or that will cover for
8:10
those ones who do not have insurance I
8:12
see for those ones who do not have
8:14
insurance then will be uh a a grant like
8:18
a help but will not be the same cover as
8:21
a conser will be less we be less we be
8:24
like a fixed amount sometimes will be
8:25
like something that will not cover the
8:27
value that you have expect to be
8:30
receiving so and it's not compatible if
8:33
you receive something from the consio
8:36
you will not receive something from this
8:37
government I'll post the details uh for
8:40
the consor
8:43
euros. website it is in English and we
8:46
were saying that this is where people go
8:48
for compensation for Extraordinary
8:50
situations natural disasters things like
8:53
that um it's if it's not it's not this
8:56
is still part of um what you it's a
8:59
compulsory government uh Risk insurance
9:01
in Spain so uh all insurers have to have
9:04
this in addition to their normal uh
9:06
Insurance like you said a re insurance
9:07
or an extra insurance um so how long do
9:11
payments take for this sort of thing
9:13
does it come from insurance companies or
9:15
does it come from government well uh the
9:17
government was uh um takes more time
9:20
takes more time because it needs to be
9:22
declared the area or the situation what
9:25
has happened is like AA catastrophic
9:27
which is like a I don't know in English
9:29
is like catastroph a disaster or or a
9:32
catastrophic incident has to be de to be
9:34
declared that with so many many issues
9:36
order to declare that and so that is why
9:38
it take more time and then the public
9:40
administration take a little more time
9:42
the Consortium they already had the
9:44
money they already had it because the
9:46
insurance companies they pay some
9:47
percentage every year to them so the
9:49
money is there and to pay in cash so
9:52
they do it rapidly as much as you you
9:54
send all the proof as much as you prove
9:56
obviously that you are the owner you
9:57
this is what it was the insurance I mean
10:00
as much as you prove the damage and
10:02
everything I mean will take some time
10:03
but will be rapid it's going to depend I
10:06
mean in this situation for example in
10:07
valenia make there some weeks make there
10:09
some months but will not take will not
10:11
be taking years I I don't think there's
10:13
any doubt that we will have that
10:15
declaration no no that's right this
10:17
situation will be like that but imagine
10:20
that someone has H something happens to
10:22
someone just just one person because I'm
10:26
U I don't know like a like a thunder or
10:28
like something lightning or something
10:31
one house it's a natural disaster it's a
10:33
natural issue and
10:35
um um well that that it will not be
10:39
declared as a catastrophic situation
10:41
right but obviously uh you have a
10:43
insurance and obviously will cover by
10:45
the comp insurance okay so it's www.c
10:50
consor
10:51
gurus. um there is a a way to change
10:54
that website to English we'll post the
10:56
details on our Facebook page uh so that
11:00
if anybody wants to check that out um
11:02
and obviously you know a number of
11:04
people have been affected uh by uh the
11:06
situation in the bay radio listening
11:09
area so might need a little bit of help
11:10
in English on that one um or of course
11:13
you can speak to your insurance company
11:16
uh meanwhile uh gentlemen you've been
11:18
talking about wills a bit of a review
11:19
going on on um your clients about uh
11:23
where they are with their wills and
11:25
we've talked in the past about how often
11:27
you need to update but there are certain
11:28
things that you need to make sure that
11:30
you keep updated in your will yes mhm
11:33
that's that's correct uh we did start
11:35
just uh uh a newsletter within our
11:38
clients uh because of the need of
11:41
updating information especially because
11:44
we're working as executiv for a lot of
11:46
our clients and some of them do not have
11:49
any children or they don't leave things
11:51
to family and they want us to do things
11:54
for them so there are two important
11:55
things we need to have in place one is
11:59
and instruction from them where to
12:01
contact and what to contact and and so
12:04
the beneficiaries the beneficiaries
12:06
detail the details because I'll tell you
12:09
the story and and two well obviously
12:12
instructions I mean not only the
12:13
beneficiaries because sometimes we're
12:15
dealing with the Cancer Association as
12:17
well in the UK and here for example a
12:19
client just passed away uh last December
12:24
and uh left everything to the Cancer
12:27
Association so that way spine for the SP
12:30
Spanish assets uh UK ccer uh I think
12:34
research or Association for the UK and
12:38
we did draw up International assets and
12:41
she had an Irish policy then 1550 so
12:46
it's for us uh the job to do to start
12:51
searching now if the client doesn't tell
12:53
you where to content what to content I
12:56
mean we don't have the crystal ball you
12:58
know we don't know
12:59
especially if you don't have children if
13:01
you don't have children or you don't
13:03
have
13:04
relatives um that's very hard job for us
13:08
so I think it's
13:09
important uh to update wills and to
13:13
provide family members contact numbers
13:17
for example the children should have
13:19
your lawyer's number um the executive
13:23
should have your beneficiaries telephone
13:25
numbers and emails and especially as
13:28
well it helps a lot well since we do a
13:31
lot of um things for clients I mean
13:34
we've got a wide range of services it is
13:37
good in that respect because we know
13:39
there are tax returns we know there are
13:41
assets and it's easier for us to to
13:44
contact the providers but I sometimes
13:48
thought about for those and Pedra and
13:51
may we've been discussing there's a lot
13:53
of money left in the bank nobody knows
13:56
and he's just there and nobody will
13:58
claim the says anything B stays quiet
14:02
yeah and well it happens many years ago
14:04
right now is is compulsory to obtain
14:07
like if when someone has that died um if
14:12
you if he had or not a life insurance
14:16
because many people died before I had a
14:17
life insurance and the insurance company
14:19
of the bank they didn't say anything and
14:21
if you don't show it they didn't say
14:23
anything it was like was crazy but it
14:24
was like that you're the people who were
14:26
inheriting had to know about it in order
14:28
to
14:29
yeah we cannot imagine how much money is
14:31
in the banks that will will be kept
14:33
there for forever mean nothing can be
14:35
done with it obviously but it sits in
14:37
those accounts and so this is why we
14:39
always say to our clients especially
14:40
International clients um I mean tell us
14:43
where where the money we don't have we
14:45
don't need to know everything I mean we
14:47
obviously as as we deal with taxes we
14:48
have a lot of information obviously but
14:50
obviously we need to understand why
14:52
something is obviously it do not do not
14:56
is not hide I mean whenever it comes
14:59
we will be able to to give it to the
15:01
beneficiaries yeah I'll tell you a story
15:03
this CL of ours pass away 31st of July
15:06
well this is another real story short um
15:10
she left in the old days to the NES you
15:13
know and obviously they didn't even know
15:17
um she was living with her father her
15:19
father passed away now she was living
15:21
with her dog in the Campo and suddenly
15:25
this September when we came back from
15:27
holidays tams in chel oh do you know
15:29
that this lady just passed away and I
15:31
said oh my goodness um she was a good
15:34
good client and she she she did a lot of
15:36
photography for us we have some of them
15:38
in our in our head office in in the
15:40
office in the office we have uh pictures
15:43
and yeah she was a teacher she was a UK
15:46
teacher and um and then we just managed
15:50
to go well I obviously when when tamson
15:53
told me this I say well let's arrange an
15:54
appointment let's go to her property
15:56
because the neighbor said the only way
15:59
to find out we had a copy of the will
16:01
but we didn't have the telephone number
16:03
the emails uh probably the assets cuz
16:07
this will was granted 15 years ago and
16:10
it was left as it is so so we arranged
16:14
an appointment well uh between the
16:15
office I called the the local police to
16:18
go because because the local police had
16:21
the keys Etc um the the story was that
16:25
the dog of I mean announced that that
16:29
something was going on to the neighbors
16:31
so the neighbors two or 3 days after she
16:34
passs away or probably two um knew
16:37
something was going on so they called
16:39
the police etc etc so they were the one
16:41
who took over
16:42
possession um of the property and then
16:46
after that when we found out we went
16:48
there and we had to start sech searching
16:52
for uh paperwork M and Diaries the
16:56
telephone unfortunately was not there so
16:58
somebody stole it and we we presented
17:00
the N already to the water cille and the
17:03
car was taken you know this goes very
17:06
this happened wow that's in a relatively
17:08
short space of time yeah I'm talking
17:09
about 31st of July and funny enough when
17:12
we went there the neighbors said well
17:14
the car was here uh this morning so I
17:17
don't know I mean I it's hard to know
17:19
what's going on but the car just
17:21
disappear now we found it because we we
17:23
LOD at the noia through the war cille
17:26
and suddenly they found it uh with
17:29
somebody who apparently was um a
17:33
gardener or something like that okay uh
17:36
but actually when I went to the property
17:38
I said well the the first thing we need
17:39
to do is just get the telephone number
17:42
try to access to the iPhone
17:45
or next and see whether we find that
17:48
okay obviously it wasn't there and the
17:50
police said when she passed away it was
17:53
there charging the phone was there the
17:55
word was there neither we found the the
17:59
purse with the money and the residency
18:02
cars which also had been there when the
18:04
police originally yes they said it was
18:06
there was so obviously we did another
18:08
Den as executors of what has happened um
18:11
funny enough uh Isabel and myself we
18:14
decide to go the ground floor try to
18:17
start searching and see well let's see
18:19
what we could find whether we could find
18:21
the beneficiaries thank God we found a
18:24
laptop and uh we took the laptop and um
18:29
obviously it had some battery because it
18:31
was a UK laptop that you need the
18:33
adapter and otherwise it wouldn't work
18:36
but funny enough we took it to the
18:37
office we started research and we found
18:39
out the email from the
18:42
sister-in-law the mother of the N nieces
18:45
right right and that really uh helped us
18:50
to tell them that she did pass away and
18:53
they were beneficiaries and they need to
18:55
come over to spine because she was still
18:58
in the T she was still wow yeah she was
19:01
there because nobody was claiming about
19:03
the budy and and anything so again that
19:07
costs as well actually that's a that's a
19:08
daily cost um correct and you know what
19:11
Cole another good thing here we finally
19:14
found a policy a funeral policy which is
19:18
covering now everything but to start
19:20
with they say oh no we don't have it
19:21
here in the details and we said yeah
19:23
I've got I've got thanks to her we've
19:25
got all the policy and writing so I'm
19:27
sorry you need to call for that and it
19:29
was a lot of money and and this is a
19:31
that's quite an intricate scenario
19:33
because there are a number of steps that
19:34
you need to take there and there's
19:35
obviously quite a bit of detection work
19:37
to go on um so you can prevent all of
19:40
that obviously by updating your
19:42
beneficiaries and updating the executive
19:44
it is doesn't actually happen to be your
19:46
uh your your lawyer or even just you
19:48
know get it all down on a piece of paper
19:50
put it in the top drawer you know along
19:52
with the funeral policy Etc things like
19:54
that Al together um but yeah the main
19:56
thing is to uh to update your will and
19:58
get those details updated is it a large
20:01
cost to do that no not necessarily
20:03
probably probably as you just said is as
20:06
simple as going back to the your lawyer
20:08
and saying is this will correct yes it
20:10
is sometimes you don't even change the
20:12
will you need to update the details and
20:14
the lawyer will upda in their system as
20:17
we're doing which is registering here
20:20
their instructions their telephone
20:21
numbers and that's not doesn't really
20:23
need much uh important thing is do you
20:27
really want to leave it to this people
20:29
that isn't the will that's the first
20:30
question two what assets do you want to
20:33
live it three if you like us as
20:36
Executives to do something how shall we
20:39
proceed and um and then just have
20:42
everything very well organized and I
20:44
think it's impossible sometimes CU you
20:47
do 10 years ago 20 years ago and
20:50
circumstances change you know um but it
20:53
it made us to reflect that obviously it
20:56
is an important thing for people
20:58
especially if if it's husband and wife
21:01
wife to husband Partners shouldn't be
21:04
that much problem as long as they know
21:06
everything or children and they have
21:07
their wheels lodged in Madrid so you
21:10
know that that's or they know who to
21:12
contact but not that many PE I mean
21:14
there is people that still wants to live
21:17
everything as we said to a charity yeah
21:20
and and and then there is a lot uh we're
21:24
just as I said we just just still
21:25
winding up the state of somebody who who
21:29
had things
21:31
worldwide and um so it's quite important
21:36
for the benefit of your instructions you
21:38
know of your wishes yeah if you want
21:39
what you want to happen happens in the
21:41
right way in the right order the right
21:43
amount correct wish we get a call from a
21:45
client says I want to know what will
21:47
happen when I die that's that's and
21:49
obviously I say well let L see the will
21:51
this is what going to happen and do I
21:53
have to change my my will because I
21:55
changed my passport number for example I
21:57
said no no it's not it's not necessary
21:59
obviously we need to match what you have
22:01
before and now or what if I was non
22:04
resident now I resident well it's not
22:06
it's not relevant to change the will uh
22:09
there are issues that are not relevant
22:10
if you want to change it perfect if you
22:11
want to change something about what will
22:13
be your
22:14
beneficiaries what is important this is
22:16
why we review uh we want to review is as
22:18
to give piece of mind to answer that
22:20
question that you said what you want to
22:22
happen is what is going to happen that
22:25
that's the most relevant issue obviously
22:27
uh we have lot
22:29
stories stor that's it it's it's quite a
22:32
worry
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