The contract
Proportional rule
Mechanism by which, if the insured capital is less than the value of the interest, the compensation is reduced in the same proportion.
In practice
It does not wait for the total claim: it applies equally to a partial damage of twenty thousand euros. A twenty percent undervaluation cuts twenty percent from each file of the year, and it is almost never detected until the first one.
Where it is addressed
This term is covered in Riesgos patrimoniales and applies when taking out Daños Materiales.
