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CANCELLATION OF THE INSURANCE POLICY
There are different cases in which an insurance company may cancel the policy:
- In case of a false statement or a lie made by the insured on his application or in a claim.
- In case that covered risk is increased.
- In case that the insured subject, property or a car is sold.
- In case that the insured missed to pay the premium after a 30-day grace period. The insured will always have the opportunity to pay the premium without affecting his rights under the policy.
The insured may cancel the policy in case that the insurance company refuses to modify the policy when the premium is reduced because of new circumstances.
In case the insured risk happens:
If the insured risk happens, the policyholder or the beneficiary should notify the insurance company within 7 working days, when no other period is stated in the insurance policy.
 The insured has to list all the items lost or damaged. This list will be investigated by the insurance company and if it is correct, they will pay an indemnity or repair the insured object. If the insurance company feels that the policy taker has engaged in some type of misconduct which voided the coverage, it may not pay the indemnity.
If the insurance company won't pay the claim, the insured may file a lawsuit against it. The court procedure depends on the amount to be claimed: it can be either ordinary court procedure (juicio ordinario), or oral court procedure (juicio verbal).
The insured has to file the lawsuit within:
- 2 years, from the date of the report of the event, in case that the insurance policy only covered material damages (property or car insurance)
- 5 years, from the date of the report of the event, in case that the insurance policy covered personal injuries (life or medical insurance). It is also possible to claim before the General Insurance Office (Dirección General de Seguros).
In case of filing a lawsuit it is advisable to contact a Spanish Lawyer.
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