An issue that is often raised to us as Barcelona insurance lawyers, are the correction factors for disability and the interests stipulated in article 20 of the Insurance Contract Law.
Correction factors for disability of the victim.
In cases of traffic accidents, when the people involved suffer injuries, it is not easy to determine the amount to which you are entitled as compensation for the days off or the sequelae (permanent injuries) you have suffered as a result of the accident.
In most cases, insurance companies indemnify only for the indicated concepts, that is, for the days it took for the injured person to heal (and its three categories: days of hospital admission, preventative, and non-impedive) and sequelae; however, there are other damages that are also compensable.
In this case, we are referring to the correction factors for permanent disability whose amounts are not negligible. There are three categories of permanent disability according to the limitations of the victim, who will see the compensation item for the consequences increased by the following amounts:
Correction factor for Permanent Partial disability:
For cases in which the permanent sequelae partially limit the habitual occupation or activity of the injured person, without preventing the performance of its fundamental tasks.
An increase in compensation of up to €18,576.47 is expected throughout the year 2012.
Correction factor for Total Permanent Disability:
For cases in which the permanent sequelae totally prevent the performance of the tasks of the occupation or habitual activity of the disabled person.
An increase in compensation is expected from €18,576.48 to €92,882.35.
Correction factor for Absolute Permanent Disability:
For cases in which the sequelae disable the disabled person to carry out any occupation or activity.
An increase in compensation is expected from €92,882.36 to €185,764.70. –€.
For cases in which the victim is affected with permanent sequelae that require the help of other people to carry out the most essential activities of daily life, such as dressing, moving around, eating or similar (quadriplegia, paraplegia, waking coma or chronic vegetative disorders, significant neurological or neuropsychiatric sequelae with serious mental or psychological disorders, complete blindness, etc.):
An increase in compensation of up to €371,529.39 is foreseen.
*** The most important thing in claiming these correction factors is to know that these situations of disability cannot be equated with work disabilities since the Law does not establish this right for cases in which the victim cannot work, but rather They are provided for when the victims cannot carry out their usual activities, thus expanding the range of work for the inability to practice hobbies, hobbies or tasks as simple and daily as housework, shopping or any other non-functional tasks. labor.
Moratorium interest of article 20 of the insurance contract law.
Another item that can be large is the result of applying, to the total compensation, the default interest provided for in article 20 of the Insurance Contract Law (hereinafter “LCS”).
These will consist of the payment of an annual interest equal to the legal interest of the money in force at the time it is accrued -that is, the date of effective payment-, increased by 50%; These interests will be considered produced by days, without the need for a legal claim.
However, after two years from the occurrence of the claim, the annual interest may not be less than 20%.
This provision is established as a “punishment” for cases in which insurers neglect their duties to promptly pay compensation. In this sense, the insurance companies have the obligation to pay the person affected by a traffic accident the amount that they understand to be due within a period of 40 days from the receipt of the notification of the accident by their insured and, in any case, , within three months from the occurrence of the accident to the injured third party.
Thus, the application of these default interests is not automatic, but the neglect by the Company of its duties must be proven; however, in article 20.4 of the LCS it is established that “compensation for delay will be imposed ex officio by the judicial body”.