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In March and April this year, as part of extraordinary government measures to deal with COVID-19, the Portuguese government approved the moratorium on housing loans and leases. On Thursday 7 May, after being requested by the Insurance and Pension Funds Authority, the moratorium on insurance premiums was finally approved.
Insurance premium regime
The government approved an exceptional and temporary regime for the families and companies who suffered the most economic hardship due to the coronavirus pandemic. It allows the payment regime for the insurance premium to be more flexible, converting it into a relative imperative regime; the parties may agree on a more favorable regime for the policyholder, safeguarding the interests of the policyholder.
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In practical terms, faced with the non-payment of the premium or fraction on its respective due date – if any previous agreement hasn't been reached - the mandatory insurance coverage will be maintained for a limited period, as well as the insured’s obligation to pay the premium.
In insurance contracts where there is a significant reduction or even the elimination of the covered risk, the policyholder will have the right to have those circumstances reflected in the premium, as well as the application of an exceptional regime, allowing payment in installments.
Insurance and reinsurance