On 24 January 2008 the Portuguese Government approved the new draft Insurance Contract Law, based on the principles arising from the VI International Colloquium of the Portuguese Insurance Institute of October 2007.
The draft, applicable to all types of policies, sets the minimum level of protection guaranteed to all insurers. For example, if an insurer underwrites a risk without having the necessary authorisations, then nullity of contract cannot be alleged in order to reject cover. The draft also sets standard conditions that the parties can only agree to change in benefit of the insured. The standards of information that insurers must provide are also raised when the insured is disabled or of ill health.
The draft also makes the system more flexible by not requiring any special form for insurance contracts, and by introducing arbitration as a way to resolve insurance disputes.