ONE LAW FOR 130 MILLION INSURANCE CONTRACTS, ONE LAW FOR YOU

 In the insurance coverage world, this year 2020 we are celebrating our anniversary. Absolutely nothing less than 40 years complies with the Insurance coverage Contract Law (LCS); the legal text that, as its name suggests, regulates and governs the contractual relationships by which the insurance company undertakes to assume threats to which its customer is subjected. It is hard for a law to reach that many years. Our Penal Code, without going any further, is 15 years more youthful.

And it is not easy, particularly thinking about the enormous reality that falls on the backs of this LCS. Between something and another, in Spain, if somebody handled to collect all the insurance agreements out there and put them one on top of the other, they could collect a mountain of paper of about 150 floorings. A height is quite comparable to the Burj Khalifa in Dubai, the highest building on the planet.

In Spain, in effect, there have to do with 26 million automobile insurance coverage agreements, which insure about 32 million automobiles; or more than 5 million health insurance agreements, insuring more than 10 million individuals. Half of the Spanish population appears with their name and surname in one of the 9.4 million death insurance coverage agreements. Some 6 million travel help contracts, 2 million civil liability contracts, 285,000 freight transportation agreements are signed each year ... There is an option.

In Spain, in fact, there are, more or less, some 125 million insurance contracts. Only in private life insurance, there have to do with 23.5 million agreements; if you had to sign at the bottom of every one of them, you would be composing for 7.5 years. However, a young boy, if you think that with that everything is said which you can rest your hand, behind would come the insurance contracts besides life, which are a couple of more: only 100 countless nothing.

Does that law have challenges? It does, obviously. The main one, adapting to the times of digital relationships and new forms of insurance coverage. The world is changing, insurance coverage should alter with it and, as insurance modifications, it is needed that its contract law likewise changes, so that in this way it does not function as a brake on innovation. This, however, is not brand-new. Insurance coverage deals with the difficulties of digitization today. However before, it dealt with other difficulties, such as telephone relations, and was able to adjust to them due to the fact that it had a regulative environment that, while in need of adjustments, is at its core strong and constant. For that reason, we hope that our veteran Contract Law understands, as soon as again, to invigorate itself.

All these relationships are regulated by a law that has 40 years of performance behind it. Efficiency is shown by the low level of litigation generated by the insurance coverage, compared to the huge volume of agreements.