Decreto-Lei n.º 20-F/2020
- Emissor:Presidência do Conselho de Ministros
- Entidade Proponente:Finanças
- Tipo de Diploma:Decreto-Lei
- Páginas:6-(6) a 6-(8)
Summary in plain english (Without legal value)
What is it?
This decree-Law establishes an exceptional and temporary scheme, in the context of the COVID-19 disease pandemic, concerning the payment of the insurance premium and the effects of temporary reduction of risk in insurance contracts arising from significant reduction or suspension of activity.
What is going to change?
The law allows the insurer and the policyholder to agree on a more favourable scheme for the benefit of the policyholder in relation to the payment of the insurance premium.
In the absence of agreement, and in the event of non-payment of the premium or fraction on the respective date of payment, the compulsory insurance coverage is fully guaranteed for a period of 60 days, with the obligation to pay the premium by the policyholder remaining.
The law also allows policyholders who carry out activities that have been affected by the response measures to the COVID-19 pandemic to request the reflection of temporary risk reduction in the payment of the insurance premium, as well as to request its fractioning at no additional cost.
What advantages does it bring?
This decree-law establishes the possibility for policyholders to benefit from a more favourable scheme regarding the payment of the premium, or from an automatic extension of the compulsory insurance contract, in case of lack of agreement with the insurer.
For policyholders who carry out activities affected by the response measures to the COVID-19 pandemic, the possibility is provided of requesting a reflection of the temporary decrease in activity in the insurance premium, as well as requesting its fractioning.
When does it enter into force?
This decree-law enters into force on the day following its publication and remains in force until 30 September 2020.