Friday, September 29, 2023

A fine against an insurance company for lack of timely payment is in accordance with the law

The National Chamber of Commercial Appeals (Argentina) confirmed the fine imposed on an insurance company for failure to pay timely sentences established in the various sentences issued against it.

The company alleged that it did not violate the obligations obtained from the last judicial sentences, because it paid two compensations, remaining seven, where it was in negotiations to fulfill the amount of the sentence, so it did not in an irregular exercise. .in the insurance activity that justifies the penalty implemented by the National Insurance Superintendency.

In this regard, the appellate court stated that, “(…) the verification of the administrative file reveals that the insurer only accredits compliance with the sentences given in the two actions; while the information involved in the remaining seven trials showed that compensation should not have been paid.”

Regarding the negotiations, it warns that “(…) the insurer, according to its own statements, “conducted negotiations to comply with the amount of the penalty”, evidence that it did not comply in a timely manner with in his obligation to pay the final judicial sentences. , which constitutes a violation of arts. 109, 110 and 116:1 of the Insurance Law.”

On the other hand, it points out that “(…) regarding the files where the insured must file attacks within the framework of the process of execution of the sentences, it is observed that the insurer does not make the payments at the right time.”

He added that “(…) the action taken by the National Insurance Superintendency cannot be described as arbitrary, nor can the resolution be accused of lacking sufficient enthusiasm.”

The above, because “(…) the insurer did not include documentary elements that would allow it to distort the facts that motivated the summary investigation, nor the quantification of the fine seems unreasonable compared to the tenor of non-compliances have been verified. , which corresponds to some files that are part of a “sample”; but it should have been replicated in several judicial processes, according to complaints received at the administrative headquarters.”

Based on these considerations, the Court confirmed the fine of 2,008,403.47 Argentine pesos against the insurer.

Nation World News Desk
Nation World News Desk
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