01/08/2023

Insurance Compensation Consortium, the “solidarity” mattress of your insurance

Did you know that more than 80 years ago the insurance sector invented compensation for the explosions of Navy powder kegs in Cádiz and Alcalá de Henares? In Spain this compensation is paid by the Insurance Compensation Consortium (Consorcio de Compensación de Seguros), which protects everything that an insurer cannot (natural damages such as volcanic eruptions, damages caused by violence and those originating from the Armed Forces) or damages whose risks an insurer refuses to take on. This is very likely to occur for something that is mandatory to insure, like an old but powerful car. This is where the Insurance Compensation Consortium comes in, which is the full expression of “MUTUAL INSURANCE.” But always remember that in order to receive compensation you need to hire insurance, in every case.

Where does the money come from?

From all of our insurance. Every time we pay for a policy, the bulk of the payment protects us and we all pay a small amount for the Consortium to collectively assume responsibility for major catastrophes.