THE ESSENTIALS
Before you start
- Establish an excess against the value of the insured interest and the applicable valuation basis.
- Good faith is a condition of the statutory excess-premium refund.
- The rule concerns excess premiums paid in the two years before the reduction request, less proportional acquisition costs.
First establish whether there really is an excess
Article 132 of Portugal’s Insurance Contract Law concerns overinsurance: insured capital exceeding the value of the insured interest. The parties may request a reduction of the contract. Articles 128, 130 and 131 address loss, insured interest and agreed valuation, including rebuilding or replacement. A comparison with the sale price alone does not settle the question.
Clara asks D. Graça to identify the policy item, valuation document and dates of the figures. The aim is to establish the basis with the insurer, rather than choose a lower capital figure simply to cut the price. The policy should not be changed on an improvised estimate.
What may be refunded, and for which period?
Article 132(2) provides, where the policyholder or insured is in good faith, for refunding excess premiums paid in the two years before the reduction request, less proportionally calculated acquisition costs. It concerns the established excess premium, rather than automatically refunding everything paid during that period.
To prepare the request, collect available notices and payment evidence, policy versions and the material supporting the question about insured capital. Identify the request date and ask for an itemised explanation of the period, excess premium and deduction. Do not replace that explanation with a percentage based solely on capital.
A teaching calculation is not a refund estimate
Purely fictional example: suppose an assessment has already established 150 euros of excess premiums in the relevant period and 15 euros of proportional acquisition costs. Simple subtraction gives 135 euros. The figures are invented: the calculation does not establish the excess, validate good faith or constitute a refund offer.
D. Graça can now distinguish three questions: is there excess insured capital, what amounts were overpaid and what deduction was considered? Clara does not turn a difference between two capital figures into a conclusion that a similar transfer is owed.
Request a review and itemised answer under the current policy
A useful message identifies the policy and item in question, supplies the available valuation and asks for assessment of a reduction and excess premiums. Keep the request and reply, including the capital and effective date of any confirmed change. Do not cancel or reduce protection yourself while the question is being clarified.
For this issue under an existing policy, use Policy support. To compare future protection, select Home under Request a quote at RMACHADO. A quote request does not establish overinsurance, a refund or a change to the current contract.
KEEP THESE QUESTIONS
Your checklist for the next conversation
- Check the policy item, valuation basis and valuation document.
- Collect policies, notices and payment evidence for the period being considered.
- Request assessment of the reduction and itemised excess premiums and costs.
- Keep the answer and confirm the capital and effective date.
FROM THE ARTICLE TO YOUR SITUATION
Let us discuss your situation
Tell us what you want to protect. We review your request and help compare relevant terms. Requesting a quotation does not activate insurance.
Sources and transparency
Content updated on .
Consultation dates are stated in individual references when available.
Numerical examples are fictional and explain concepts. Editorial interpretations are identified in the text.
Information from RMACHADO GROUP. This is not an insurance offer or individual advice. Covers, acceptance, exclusions, sums insured and costs depend on the policy. The intermediary does not underwrite the risks.