The Danish Guarantee Fund for Non-life Insurers has by law no. 480 of 12 May 2023 been appointed compensation body for motor liability damages in- and outside of Denmark. This is part of the implementation of the 6th motor vehicle insurance directive.
This means that the Danish Guarantee Fund will compensate motor liability damages from bankrupt insurance companies, when the bankruptcy occurs after 23 December 2023. The Danish Guarantee Fund provides compensation to claims from an injured party for damage to property or personal injuries caused by a vehicle insured against civil liability by a bankrupt insurance company under the home member state principle. This means that the Danish Guarantee Fund in the future will also provide compensation to foreign policyholders that have taken out a motor liability insurance with a Danish non-life insurance company in the event of a bankruptcy.
Furthermore, Danish policyholders that have taken out a motor liability insurance with an EU-based insurance company which has gone bankrupt, are entitled to submit a claim to the Danish Guarantee Fund instead of to the compensation body in the relevant EU-country.
Similarly, foreign policyholders can submit a claim to the compensation body in their home country rather than to the Danish Guarantee Fund, if the motor liability insurance has been taken out with a Danish insurance company that has gone bankrupt.
The Danish Guarantee Fund and the other compensation bodies have entered into insolvency agreements regarding motor liability. The agreements have entered into force 10 July 2024 and can be found HERE.
