Law N° 31149, through which Articles 9° and 18° of Legislative Decree n° 688 of the Social Benefits Consolidation Law have been modified, was published on 31 March 2021.
The main aspects of the modifications are as follows:
Continuation of life insurance on termination
- For the purpose of maintaining life insurance when terminated, the worker has 60 calendar days to make a request in writing to the insurance company and pay the premium.
- The worker may choose to pay the premium on a monthly, quarterly, semi-annual or annual basis.
- The premium will be calculated based on the amount of the last remuneration received, without applying the maximum insurable remuneration as a limit.
- In the new contract concluded with the worker, the premium may not be higher than that paid by the employer before the termination. Likewise, the same conditions of the contract that the worker had while he had an employment relationship will be maintained.
- The insurance contracted will remain in force according to the term established in law N° 29946, Insurance Contract Law, which is presumed to be one year in duration, unless a different term is agreed.
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