THE INSURANCE COMPENSATION CONSORTIUM FOR LOSSES DERIVED FROM EXTRAORDINARY EVENTS.
PERSONAL INJURIES CLAUSE.
In accordance with the provisions set forth in the revised text of the Legal Statute of the "Insurance Compensation Consortium", approved by Royal Legislative Decree 7/2004 of 29 October, and amended by Law 12/2006 of 16 May, the policyholder of an insurance contract, which by law must include a surcharge in favour of said public business entity, has the power to reach an agreement for the coverage of extraordinary risks with any insurance entity that meets the conditions required by legislation in force.
The indemnity derived from losses resulting from extraordinary events that occur in Spain and that effect the risks located therein, and also those that occur abroad when the insured has his main residence in Spain, shall be paid by the "Insurance Compensation Consortium" when the policyholder has paid the corresponding surcharges in favour thereof and when any of the following occurs:
a. If the extraordinary risk covered by the "Insurance Compensation Consortium" is not covered by the insurance policy contracted with the insurer.
b. When, even though it covered by said insurance policy, the duties of the insurance entity could not be fulfilled because it has been legally declared to be bankrupt or because it is subject to a compulsory winding-up proceeding or a winding-up assumed by the "Insurance Compensation Consortium".
The "Insurance Compensation Consortium" shall comply with the provisions set forth in said Legal Statute, in Law 50/1980 of 8 October on Insurance Contracts, in the Regulations on extraordinary risk insurance approved by Royal Decree 300/2004 of 20 February and in all complementary provisions.