THE ESSENTIALS
Before you start
- Legal-expenses cover should have its own contract or a separate policy chapter.
- The law provides for free choice in judicial or administrative proceedings and other conflicts of interest, with specific rules and exceptions.
- Free choice does not establish that every expense or fee will be fully paid.
First identify the cover you hold
Article 167 of Portugal’s Insurance Contract Law describes legal-expenses insurance as covering legal-service costs and expenses of judicial or administrative proceedings. Article 169 requires a distinct contract or separate chapter identifying the cover’s content. The word “defence” in a proposal alone does not identify the regime.
Clara helps D. Graça find the chapter, the capacity in which she is insured and the stated type of dispute. The existence of cover alone does not establish whether a particular dispute falls within its scope, territory or period.
The right of choice is expressly provided
Article 170(1)(a) requires mention of the right to choose a lawyer or another legally qualified person freely to defend, represent or serve the insured’s interests in judicial or administrative proceedings and any other conflict of interest. Do not reduce that provision to a list of contacts offered by the insurer.
Paragraph 2 allows that mention to be omitted in a limited situation with cumulative conditions: Portuguese road-vehicle proceedings, association with accident or breakdown assistance, neither insurer writing liability classes, and specific lawyer-independence terms. Motor assistance alone does not satisfy the exception. Ask for the basis if it is invoked.
Choosing does not establish the covered budget
D. Graça asks which expenses are included, the sums insured or sublimits, any deductible and the procedure for submitting fees. These do not follow just from the lawyer’s identity. Keep the explanation with the relevant chapter and do not treat another cover’s main limit as the available legal budget.
For disagreement with the insurer, articles 170–171 provide for information about the applicable rights and an arbitration clause without removing the right to bring an action or appeal. For an action or appeal discouraged by the insurer and funded by the insured, the law provides reimbursement to the extent that the arbitral decision or judgment is more favourable than the insurer’s proposed solution; it does not promise full payment for every case.
Liability-insurer defence calls for a separate reading
Article 172 limits the regime, including defence or representation performed by a liability insurer simultaneously in its own interest under that cover. It also contains qualifications for sea-going-vessel disputes and certain assistance activities abroad. Do not apply the legal-expenses rule automatically to every reference to a lawyer.
For an existing policy, use Policy support and claims and identify the coverage question without publishing court documents. Time-limited notices need timely legal help. For future protection, you can request RMACHADO contact under Other insurance; an enquiry does not retain a lawyer or confirm cover for an existing dispute.
KEEP THESE QUESTIONS
Your checklist for the next conversation
- Find the separate legal-expenses contract or policy chapter.
- Check free-choice scope and the basis of any exception.
- Ask about covered expenses, limits and submission procedure.
- Keep the answers and handle notices with timely legal support.
FROM THE ARTICLE TO YOUR SITUATION
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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.