Questions and answers for the insurance policyholders

In the event of a member of the Danish Guarantee Fund's bankruptcy, the Fund will cover claims reported by the following:

• Policyholders with private insurances (typically consumer insurances as 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)

• policyholders and those insured under collective insurances to the extent that an insurance corresponds to the individual insurances is 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 claims for the above mentioned insurance policies written in Denmark for risks in Denmark.

The Fund covers premiums paid before the issue of the bankruptcy order, but with an excess of DKK 1,000 per policy. However, only the premium as corresponds to the remaining part of the insurance period is covered by the Guarantee Fund.

All non-life insurance companies within the EU/EEA that provide insurance in Denmark covering risks situated in Denmark have been required to be members of the Danish Guarantee Fund for Non-Life Insurers since 1 January 2019.

Policyholders can therefore be assured that they are covered by the Danish Guarantee Fund if they take out consumer insurance in Denmark, covering risks situated in Denmark, with an insurance company established in an EU/EEA country.

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.

The Guarantee Fund covers claims for damages that have arisen up to 4 weeks after the policyholders have been notified by the liquidator of the insurer’s bankruptcy.

In the case of a bankruptcy of a non-life insurance company from another EU/EEA country, the deadline of 4 weeks is calculated from the time the Guarantee Fund has notified the claimants of the insurer's bankruptcy.

From 1 January 2019 there is a special scope for byggeskadeforsikringer (structural warranty insurance – new build), ejerskifteforsikringer (latent defect insurance - change-of-ownership) and sælgeransvarsforsikringer (property sellers liability insurance), as the Guarantee Fund covers claims for the entire remaining period of the insurance policy, if the insurer goes bankrupt.

The letter from the liquidator of the insurer’s bankruptcy sent out in the event of a bankruptcy will mention how policyholders must deal with the notification of claims that are covered by the Guarantee Fund.

The liquidator of the insurer’s bankruptcy will provide information on the procedure for notification of claims for individual policyholders, depending on the type of insurance.

According to the Guarantee Fund Act, claims must be notified within 6 months of the bankruptcy decree being issued. Claims that are reported after the 6-month deadline cannot be covered by the Guarantee Fund and can only be reported as a claim (claim for damages) in the insurer's bankruptcy estate.

Claims for damages that have been notified to the insurance company before the bankruptcy decree is issued are considered notified to the Guarantee Fund and should not be notified again.

It is the Guarantee Fund's administration company that, in collaboration with the liquidator of the bankrupt company, is responsible for handling all reported claims.

The Guarantee Fund's administration company will attempt to as fast as possible wound up all cases taken over from the bankrupt company.

If you are a policyholder in an insurance company that has been declared bankrupt, you can read more about how to deal with the specific situation on the Guarantee Fund's website, who will continuously update news.

Read more on our website:

• Gable/Husejernes

• Alpha Insurance

• Qudos Insurance

• CBL Insurance

• Gefion Insurance

• Element Insurance AG

Yes.

The Guarantee Fund only covers a limited period. Therefore, it is important that you get reinsured quickly.

In most cases, consumers can go to another insurance company to get insured. You can use www.forsikringsguiden.dk to get an overview of insurance options in Denmark. Here you can compare the price and coverage of most private insurances with a large number of insurance companies.

Especially in the case of compulsory insurance is it important that a new insurance is taken out with another insurance company as soon as possible, in order to maintain the compulsory insurance coverage.

Only policyholders of byggeskadeforsikringer (structural warranty insurance – new build), ejerskifteforsikringer (latent defect insurance - change-of-ownership) and sælgeransvarsforsikringer (property sellers liability insurance) whose insurer goes bankrupt after 1 January 2019, is covered by the Guarantee Fund for the entire remaining period of the policy.

No. It is evident from section 4(1) in the Guarantee Fund for Non-life Insurers’ consolidation Act that a policyholder, until the assets of the Danish Guarantee Fund constitute DKK 600 million, cannot cancel an insurance contract due to the extra charge to the premium which only use is to pay the contribution to the Danish Guarantee Fund.