The situation of insecurity that the country is going through and the Government’s recognition of the existence of an internal armed conflict have caused uncertainty among clients of insurance companies as to whether contracted life, vehicle, property, etc. insurance will be covered under these circumstances policies. The Supervisory Board for Commercial Companies, Securities and Insurance on Wednesday, January 10, clarified that insurers will cover damages in accordance with the agreed in signed policies and contracts. Patricio Salas, Secretary General of the Ecuadorian Federation of Insurance Companies (Fedeseg), clarifies a little more the panorama of how insurers will act.
But it is always emphasized that what is expressly agreed and included in each client’s policy is covered, such as social and political risks.
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Regarding the insurance sector, what is the current situation in the country and does it change the insurance coverage in any way?
For our sector, as well as for the whole society, it is a critical and decisive moment for the restoration of institutions and peace. In terms of insurance coverage, this does not really mean a change, as existing policies are retained, with the coverages, exclusions and other conditions they already had. There are no changes in this sense.
Ecuador is said to be in a state of internal war, what is the protocol that insurance companies use in these cases?
This means that there is a more complex social situation and this leads to a better evaluation of risks, a better management of the solvency and liquidity of the company, to guarantee service and answers to the insured.
Insurance companies will cover compensation claims in accordance with agreed policies and contracts, the Supervisory Authority for Trading Companies, Securities and Insurance explains
What will happen to vehicles that are burnt or damaged by these offences, regardless of whether the cover is valid or not?
The same coverage, exclusions and other conditions already agreed upon, as well as the circumstances in which the event occurred, still apply. If there is coverage, the companies will reimburse it.
Are acts of terrorism included in these exclusions, or is the announcement by the Chief Inspector sufficient to cover any incident that occurs?
The supervisory authority also confirms that policies must handle cases in accordance with the agreed coverage. This means that it is covered if the risk of terrorism is included in the contracted cover.
What are the types of policies that cover these specific incidents that occur in the country and how many are contracted?
The most sought-after damage insurances that can cover social and political risks as mentioned, if this risk is expressly contracted, are vehicle, fire and technical insurances.
How much of the total insurance contracted in Ecuador represents insurance that can cover these social and political risks contracted with this risk (terrorism)?
I have no information about that.
What do insurance policies cover in an internal armed conflict? Experts answer
Will the state of the country affect insurance costs in the future?
We cannot predict, we will have to subsequently and technically evaluate what was the true economic sense of what we are going through.
Source: Eluniverso
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