The Constitutional Chamber of Costa Rica has rejected a petition against a series of economic sanctions for insurance companies defined in the law that regulates the market.

ElfinancieroCR.com reports that the action was raised on May 7, 2012, by the Office of the Ombudsman.

According to the arguments presented by the chief of the Ombudsman, Ofelia Taitelbaum:

“Some clauses of Articles 37, 38 and 39 included fines which allegedly breach the principle of equality in the case of possible faults by companies. It was also argued that it lacked proportionality and reasonableness.”

In the decision, the Court concluded that the Ombudsman was outside the remit of its legally imposed boundaries, therefore there was no justification to act directly on behalf of insurers and reinsurers.

“Nor was it shown that the rules under discussion produced, necessarily and of themselves, a disservice to all consumers, whereas the declaration called for itself would have an adverse effect on that group of people”.

The Jan. 23 decision once again brings into effect any sanction issued by the Superintendent of Insurance (Sugese) against a company in administrative and judicial proceedings.

Source: ElFinancieroCR.com