CCS Notice on Compensation for Damage Caused by the Volcanic Eruption

Even though the geological phenomenon is still ongoing and has not ended, and the loss adjusters of the Consorcio de Compensación de Seguros (CCS, the Spanish Insurance Compensation Consortium) who have travelled to the island of La Palma to carry out an initial assessment of the affected areas and estimate the damage have not yet been able to access those areas to carry out their task, the CCS is issuing the following initial considerations for the information and clarification of the public in general and of policyholders in particular.

FIRST INFORMATION NOTICE ON THE VOLCANIC ERUPTIONS THAT HAVE OCCURRED SINCE YESTERDAY, 19 SEPTEMBER, ON THE ISLAND OF LA PALMA AND THE HANDLING OF THE COMPENSATION PAYMENTS FOR WHICH THE CONSORCIO DE COMPENSACIÓN DE SEGUROS OF THE MINISTRY OF ECONOMIC AFFAIRS AND DIGITAL TRANSFORMATION IS RESPONSIBLE

Even though the geological phenomenon is still ongoing and has not ended, and the loss adjusters of the Consorcio de Compensación de Seguros (CCS) who have travelled to the island of La Palma to carry out an initial assessment of the affected areas and estimate the damage have not yet been able to access those areas to carry out their task, the CCS is issuing the following initial considerations for the information and clarification of the public in general and of policyholders in particular.

1.- Volcanic eruption is indeed included, alongside flooding, storm surge, earthquake or tsunami, windstorms with gusts exceeding 120 km/h, and tornadoes, in the list of what are legally termed "extraordinary risks", for which the CCS of the Ministry of Economic Affairs and Digital Transformation pays compensation.

2.- Therefore, the CCS will directly handle, with its own resources, the processing and payment of the compensation claims it receives, following an assessment of the damage eligible for compensation that has occurred and continues to occur as a result of this volcanic episode.

3.- The requirement for submitting a compensation claim to the CCS is that the affected party be insured and had their policy in force at the time the volcanic eruption began.

4.- The CCS will compensate injury to insured persons, should it occur. It will also compensate damage to insured property, whether this involves homes or homeowners' associations; motor vehicles; office premises; commercial and service establishments and other non-industrial buildings; industrial facilities; and civil works and infrastructure, whether all such assets are privately or publicly owned.

5.- The CCS will pay compensation in accordance with the sums insured and the terms of the affected party's insurance contract.

6.- In the case of the property mentioned, the CCS compensates both material damage caused by the eruption, lava and other materials, and consequential non-material losses arising from these, such as loss of rental income for property owners, the

cost of accommodation arising from a home being uninhabitable, or loss of income due to the closure of commercial, service or industrial premises, all as provided for in the affected party's insurance contract.

7.- Compensation claims may be submitted directly by the affected policyholder or, on their behalf, by their insurer or their insurance intermediary (agent or broker).

For this, it is enough to call the CCS telephone helpline (freephone 900 222 665) and provide the identifying details of the policyholder, the damaged property and the policy taken out, or to submit the same information online via the CCS website (www.consorseguros.es). Once the call or the on-screen form is completed, the claim is instantly registered in the CCS computer system and the affected party is given their reference number.

8.- The CCS will register and process compensation claims received from policyholders even if the 7-day period set out in insurance legislation since the damage occurred has elapsed.

Madrid, 20 September 2021