Portuguese insurers will pay a total EUR 2.5 million in special compensations to families of the catastrophic wildfire victims
The terms, possible limits and criteria for granting such compensation are still under preparation and will be announced soon. The insurers said however that neither the decision to set up the fund nor the payments to be made from it would be a recognition of an implicit liability of insurance companies. Jose Galamba of OLIVEIRA, President of the Association of Portuguese Insurers (APS), said: "The purpose of this special fund is to help families reorganize their lives, responding as quickly as possible to immediate needs, depending on the losses suffered."
Insurance companies have also decided that exclusively for homeowners who have fire insurance, contractual franchises will not be applied, as the so-called proportional compensation rule for subsistence properties , indemnities being paid according to the general terms.
At the same time, companies have taken all the necessary measures for a quick settlement of claims, by moving dedicated teams to the calamity area.
At the end of June, a devastating forest fire occurred in the Pedrogao Grande Province, 160 km north of Lisbon. Dozens of people were killed by flames, charred into their own cars while trying to escape the fire. Against the background of the heat wave that affected Portugal, the forest fire - the largest event of its kind in the history of the country - has destroyed an area of over 30,000 hectares in the province of Pedrogao Grande, expanding in neighboring regions. For the time being there are no official assessments of the economic losses generated by the disaster.