What is covered by the Guarantee Fund?
In the event of a non-life insurer’s bankruptcy, the Fund will cover claims reported by the following:
- Policyholders with private insurances (typically consumer insurances such as third-party motor liability insurance, home and personal protection insurance, houseowner’s insurance, second home insurance, accident insurance or similar private insurances)
- third parties insured against personal injury or damage to property under motor liability policies (regardless of whether they have been taken out for commercial purposes)
- third parties insured against personal injury under any other liability policies (regardless of whether they have been taken out for commercial purposes)
- policy holders and those insured under collective insurances to the extent that an insurance corresponds to the individual insurances covered
- policyholders with property fire insurances regardless of the type of property and class of policyholders (the purpose of this provision is to ensure indemnification of creditors with a recorded real-property mortgage in case of fire on property on which they hold a mortgage. Therefore, coverage of damage caused by fire is not limited to consumer insurance, i.e. one- or two-family houses or second homes, as the Fund also covers fire damage to commercial properties etc.).
The Fund covers premiums paid before the issue of the bankruptcy order but with an excess of DKK 1,000 per policy. However, only such part of the premium as corresponds to the remaining part of the insurance period is covered by the Fund.
Which non-life insurers are covered by the Fund?
The Fund covers Danish non-life insurers and branches in Denmark of foreign non-life insurers residing outside the EU/EEC. In addition, the Fund covers non-life insurers residing in other EU/EEC countries which through branches or cross-border services provide non-life insurance in Denmark and have voluntarily become members of the Fund.
As far as Danish non-life insurers are concerned, the Fund covers, until 1 January 2019, activities carried out by the insurers in other EU/EEC countries. If, for instance, a Danish non-life insurer is operating a branch in France, French customers will be covered by the Guarantee Fund in the event of the Danish insurer’s bankruptcy.
For foreign insurers, on the other hand, the Fund covers only activities carried out by the insurers in Denmark.
How will policyholders be notified of the insurer’s bankruptcy?
All policyholders will be notified about the insurer’s bankruptcy by the liquidator of the bankrupt insurer. In addition, the Danish Financial Supervisory Authority will notify policyholders through the Danish daily press.
For how long will the Guarantee Fund cover claims?
The Guarantee Fund covers claims arising within four weeks after the creditors have been notified by the liquidator of the insurer’s bankruptcy.
For non-life insurers who have voluntarily joined the Fund (insurers from other EU/EEC countries), however, the deadline for reporting claims is four weeks from the time when the Fund notified the creditors of the insurer’s bankruptcy.
How long is the deadline for notification of claims and to whom should they be notified?
The insurance company responsible for handling claims on behalf of the Guarantee Fund must be notified of any claims to be covered by the Fund not later than six months after the issuing of the bankruptcy order. Any claims made after the period of six months will not be covered by the Fund and can subsequently only be registered as claims against the insurer’s bankrupt estate.
Claims made against a bankrupt insurer prior to the issuing of the bankruptcy order will be considered to have been made to the Fund and need not be reported again.
Who will be dealing with reported claims?
The Guarantee Fund for Non-Life Insurance Companies will make agreements with one or several insurance companies to take over the policyholders of the bankrupt insurer.
You will be contacted by the insurance company assigned to deal with your specific case.
The Guarantee Fund will endeavour to transfer all policies from the bankrupt insurer as quickly as possible.
Who can I contact with inquiries about a reported claim?
In the event of inquiries about a reported claim, please contact the insurance company responsible for handling cases on behalf of the Fund (this website will be updated with more information about the name of the insurance company etc. on a regular basis).
The Guarantee Fund covers for a limited period of time. Therefore, it is important that you take out another insurance policy in another insurance company as soon as possible in order to remain insured.