Direct insurance: In the case of private vehicles, the Consorcio will decide on an individual basis ¿ and taking into account, as the case may be, the possible non-selection that may arise - the bill for the insurance premium to be paid by those insured parties whose mandatory insurance cover has not been accepted by insurance entities. The Resolution of the directorate-General of Insurance dated 30th December 1992 approved the current tariffs for the premiums to be applied by the Consorcio for the coverage of the Community of Official Vehicles, both for mandatory insurance as well as for voluntary insurance.

Subsidiary insurance: the tariff is fixed at 2 per cent of the maximum commercial premium for each insured risk, which should be applied by the insurance entities when they underwrite obligatory motor cover for a vehicle, and this should be reflected in the corresponding premium receipt (DGSFP Resolution dated 19thMay 2009) Pdf file. Open in a new window

Collection: The procedure for collection differs according to it is for premiums (direct insurance activity) or surcharges (activity as a Guarantee Fund). In the case of the former the Consorcio will collect them directly, and in the case of the latter it is the insurance entities who are entrusted with collection and subsequent payment to the Consorcio.

Freedom of establishment and provision of services: Article 82.1 of the Law of Organisation and Supervision of Private Insurances (redrafted text approved by Legislative Royal Decree 6/2004 dated 29th October) expressly determines that insurance contracts underwritten within the Regime of Freedom of establishment and provision of services that cover localised risks or assume commitments in Spain, are subject to the surcharges in favour of the Consorcio de Compensación de Seguros to cover the needs of said entity in the exercising of its different functions (compensation of extraordinary risks, Guarantee Fund for Third Party Motor Liability, liquidation of insurance entities), as well as the remainder of surcharges and taxes legally applicable under the same conditions as those insurance contracts underwritten by Spanish insurance entities.

Likewise, and in accordance with article 86.1 of the same Law, those insurance entities whose domicile is in another of the Member States of the European Economic Area that hope to operate in Spain under the Freedom of Establishment and Provision of Services Regime, will be obliged to designate a representative with a fiscal domicile in Spain for the purposes of taxation obligations referred to in the abovementioned Law with regard to the activities that they carry out on Spanish territory.

The insurance entities referred to in the above paragraph that wish to contract third party motor liability insurance, excluding transporters liability, must also designate a representative, an individual that generally resides in Spain or an entity legally established here (article 86.2). Their faculties are as follows:

  • To attend to claims presented by affected third parties. For this purpose they must have adequate powers to represent the insurance entity, even for the payment of indemnities, and to defend said entity before the courts and Spanish administrative authorities.
  • To represent the insurance entity before the Spanish legal and administrative authorities that are competent in all matters concerning the control of the existence and validity of third party liability insurance policies arising from the circulation of motor vehicles.
  • To carry out, as appropriate, the rspresentative functions previously mentioned for the purposes of complying with taxation obligations (Consorcio surcharges and other legally required taxes).

Should the insurance entity not have designated the representative referred to above, the functions of same will be undertaken by the representative designated in Spain for the handling and settling of claims in other Member States of the European Economic Area when the affected party is resident in Spain. Neither of the above representatives will establish a branch on their own account and, consequently, may not carry out direct insurance operations in the name of the insurance entity that is represented.