Tuesday, 17 March 2020

Clarifications from the Portuguese Insurance Association (“APS - Associação Portuguesa de Seguradores”) about the COVID-19 impact on the Insurance Law activity

VolverAfter the World Health Organization (“WHO”) has declared an official pandemic situation due to the evolution of the epidemic frame of the new Coronavirus (Covid-19), on March 13th, 2020 the Portuguese Insurance Association (“APS”) has clarified some usual queries regarding the following insurance products: health, life, travel and labour accidents insurances.

The APS release initially declares that the insurance companies are, in accordance with the measures taken in all sectors, implementing the correspondent contingency plans.

The main measure of that plan, is the development of the teleworking regime that conciliates the two most relevant factors at this stage: assure that their workers are in the appropriate health and labour conditions; and maintain their corporate purpose and insurance activity without any disruption. In addition, it is now recommended that the contacts established between the clients and the insurance companies are performed over the telephone or by the usual electronic ways, trough the contacts available on their respective web pages.

APS has introduced the following clarifications:

Health Insurances

The Association has stated that the OMS communication declaring a pandemic situation does not implicate any changes nor modifications on the usual operation of these insurance product, which means that all contributions and fees continue to be due and paid, as agreed on insurance agreements between the clients and the insurance companies. On the other hand, the insurance companies have spared their customer care lines and contacts to the provide additional clarifications and assist any possible diagnosis and are also supporting the costs related to the diagnosis tests, whenever a medical prescription is mandatory. This measure is taken to facilitate the early detection of the virus and to avoid any further propagation.

APS clarifies as well that, in accordance with the orientation lines provided by the Portuguese General Health Direction (“DGS – Direção Geral de Saúde”), in the event that the insurance companies conclude by the existence of a suspected case / diagnosis with COVID-19, they will immediately submit the said cases to the specialized services of the Portuguese national healthcare system.

Life Insurances

In what concerns the hired life insurances, APS informs that the “in general terms, the majority of the life insurance agreements does not exclude of the agreed coverages, the epidemic / pandemic declaration, which means that, in the event of the insured person dies of Coronavirus, the beneficiaries will be entitled to receive the covered amount".

Labour Accidents

As it is already known, all companies are adopting the teleworking regime as a solution to their contingency plans to the employees whose work is possible to be performed remotely. The insurance companies are adopting the same regime, without any exemption.

Bearing this regime in mind, APS declares that any accidents that may occur when performing work chores or projects during the teleworking regime, shall be considered as labour accidents. This applies to both employees and public entities. Nevertheless, and in order to assure that any accident occurred as described may be considered as a labour accident, the Association adverts all employees to document and activate the teleworking regime, namely by identifying the workers included on the said regime, their work schedules, teleworking period and respective new working addresses.

Travel Insurances

There is no common standard procedure already defined to the travel insurances resulting from the Covid-19 virus. In fact, the universe of possibilities associated to this kind of agreement and insurance requests that the insured persons clarify with their insurance companies the previously agreed terms, aiming to confirm the coverage of this situation.

Nevertheless, APS states that in what concerns the assistance and travel insurances, the clients that have hired an insurance directly with any insurance company and are prevented from traveling because they (or any of their dependents) are infected with Covid-19 and are in quarantine or in a hospital confinement (imposed by a competent authority or entity) can usually activate this coverage.

In the event that the insurance products were hired trough a travel agency, APS recommends that the clients requests information and further clarifications to the responsible insurance company regarding the existent coverages.

In addition, APS declares that all insurance companies reinforce their availability to cooperate and assist in the implementation of any measures or plans to control and avoid the Covid-19 propagation and to assist on the constant search of possible solutions, with the correspondent competent authorities, namely on the assistance protocols to be celebrated. This declaration has also been duly communicated to the Health Ministry.

The Insurance Law Department of Belzuz Abogados S.L.P. – Sucursal em Portugal shall remain focused to the current exceptional situation, in order to provide and assist on the most completed and professional way, their individual or insurance companies’ clients.

 Luis Filipe Faria Luis Filipe Faria 

Insurance Law department | Portugal

 

Belzuz Abogados SLP

This publication contains general information not constitute a professional opinion or legal advice. © Belzuz SLP, all rights are reserved. Exploitation, reproduction, distribution, public communication and transformation all or part of this work, without written permission is prohibited Belzuz, SLP.

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