Payment-in. Period and collection commission.

Collection commission

For the purposes of complying with the presentation period the declaration and payment must be made within the normal working hours of the month following the end of the period that is being settled.

Normal working hours is understood to mean the time that allows presentation and payment of the declarations/settlements with "presentation date" within the current month referred to in the previous point.

In order to clarify whether the presentation will fall within the established mandatory period the collaborating entity will show the presentation date by two means:

  • In principle, the hours that are understood to be working hours and, therefore, the period in which the presentation will be attributed.
  • The system will subsequently show the finished declaration and, in file format, the date assigned to the declaration that has been presented.

Presentation outside the period will entail:

  • In the case of obligatory surcharges for extraordinary risks cover, direct material damage and loss of profits, to be presented in Forms 10 and 11 respectively, the loss of collection commission and the repercussion of late payment interest at the legal monetary rate in each year.
  • In the case of obligatory surcharges corresponding to the mandatory motor insurance to be presented in Form 20, the repercussion of late payment interest at the legal monetary rate in each year.
  • In the case of obligatory surcharges for financing the liquidating activities of insurance entities to be presented in Form 50, the repercussion of late payment interest at the legal monetary rate in each year.

The time frame for the payment of surcharges to the Consorcio is as follows:

MODELS 10, 11 AND 20 ¿ MONTHLY

Extraordinary Risks Direct Damage; Extraordinary Risks Loss of Profits and Obligatory Motor Insurance; the declarations/settlements on Models 10, 11 and 20 Respectively must be made monthly and paid in within the month following the period in question.

MODEL 50, QUARTERLY

The surcharge used for financing the activity of Liquidating Insurance Companies: the declaration on Model 50, must be made monthly and the money must be paid within one month following the date of closing of the natural quarter.

Collection commission

Collection of the surcharges for Extraordinary Risks ¿ direct damage and loss of profits and paying the money into the Consorcio entails the right to receive a commission to compensate the handling cost which is currently established by the Consorcio at five per cent 5% of the amount of the settled surcharges.

The amount of the commission together with the Added Value Tax will be deducted by the insurance company in the corresponding settlement model (Model 10) and (Model 11).

As an exception the insurance companies that are not established in Spain and that operate under the regime of freedom of provision of services as well as entities resident in the Canary Islands, Ceuta and Melilla will not take into account the repercussion of Value Added Tax in the settlement.

The commission can only be deducted when the declaration-settlement has been presented and paid within the period and in the way legally laid down.

Undue payments-in

Given that the settlements refer to amounts for surcharges and premiums that really have been collected in the period, no offsetting nor regularisation of policies is allowed between the periods declared by the insurance companies apart from in the circumstances established in the Royal Decree Consorcio Regulations 731/1987 of 15th May.

In all events any return of unduly paid money must be requested from the Consorcio in the way laid down in its Regulations.

Compensation will only be possible when it is the result of surcharge returns as long as these correspond to premium returns to the policy holder, in accordance with the stipulations of Art. Three. 1. 4. 3 of the Resolution of the Consorcio's Presidency dated October 9, 2009.