Portugal's Insurance and Pension Funds Supervisory Authority (ASF) published a compendium of supervisory interpretations on compulsory insurance, clarifying how insurers should draft and apply policy conditions so that mandatory cover and minimum sums insured are not weakened through contract design. The guidance includes cross-cutting positions such as a minimum notice period of at least 10 calendar days or eight business days for termination for just cause, the need for contractual documents to clearly state the compulsory minimum capital, and limits on imposing additional policyholder/insured duties beyond the Insurance Contract Legal Regime unless more favourable. It also restricts maximum-age limits unless grounded in the specific compulsory-insurance legislation, constrains sanctions-related non-payment clauses to sanctions binding in the Portuguese legal order, and explains that purely graphical updates made to meet Law No. 32/2021 font and spacing requirements do not require a new ASF legal conformity declaration. Line-specific interpretations span personal accident, fire and general liability compulsory covers, including objections to time limits and broad exclusions not предусмотр in the relevant compulsory regimes, requirements to reinstate sums insured where minima apply per claim, and confirmation that deductibles and coverage forfeitures in compulsory liability insurance cannot be invoked against injured third parties, with recourse rights (where relevant) as the appropriate mechanism. The document also flags product examples where clauses are viewed as incompatible with compulsory cover, including attempts in motor third-party liability to exclude certain “operational” uses of vehicles or the transport of hazardous materials, and attempts in condominium fire insurance to narrow the statutory scope (such as by restricting eligible buildings via general policy definitions).
Portuguese Insurance Regulator (ASF) 2025-11-05
Portugal's Insurance and Pension Funds Supervisory Authority sets expectations for compliant policy terms across compulsory insurance lines
Portugal's Insurance and Pension Funds Supervisory Authority (ASF) released supervisory interpretations on compulsory insurance, clarifying policy drafting to ensure mandatory cover and minimum sums. Guidance includes notice periods for termination, compulsory minimum capital, and restrictions on policyholder duties. It addresses interpretations for personal accident, fire, and liability covers, emphasizing protection of injured third parties and identifying incompatible clauses in motor and condominium insurance.