Insurance laws Belgium
In Belgium, insurance is governed by the Insurance Act of 4 April 2014, which sets out the fundamental rules for insurance contracts and the supervision of the insurance market. This legislation aligns with European Union directives, ensuring a consistent framework across the EU, while also addressing specific national requirements.
Key Aspects of Belgian Insurance Law
Regulatory Authorities: The Belgian financial sector is primarily supervised by two bodies:
The National Bank of Belgium (NBB) is responsible for the prudential supervision of insurance companies, ensuring their financial stability and solvency.
The Financial Services and Markets Authority (FSMA) focuses on market conduct, protecting consumers by ensuring fair and transparent practices in the sale of insurance products.
Contractual Principles: Insurance contracts must be in writing. The law requires insurers to provide clear and comprehensive information to policyholders before the contract is concluded. Misrepresentation or non-disclosure of material facts by the insured can lead to the contract being nullified, particularly in cases of intentional misrepresentation.
Dispute Resolution: Recent changes to the law, which came into effect in 2024, have introduced new rules and penalties for insurers. If an insurer disputes a claim, they must provide a reasoned response within three months. Failure to do so can result in a lump sum penalty. The law also sets clear deadlines for paying undisputed claims and imposes interest penalties for late payments.
Mandatory Insurance in Belgium
Certain types of insurance are compulsory in Belgium to protect individuals and the public:
Motor Third-Party Liability Insurance: This is a legal requirement for all motor vehicles. The insurance covers damage or injury caused to other people or their property in a road accident. It is illegal to drive a vehicle without this coverage.
Health Insurance: As part of the social security system, all residents are required to be affiliated with a health insurance fund. This provides a basic level of coverage for healthcare costs. Many people also take out a supplementary private health insurance ("mutuelle") to cover costs not fully reimbursed by the public system.
Workers' Compensation: Employers are legally required to provide insurance that covers injuries sustained by employees during the course of their work.
Professional Liability Insurance: A range of professions, including doctors, lawyers, and architects, are legally required to carry professional liability insurance to cover potential harm caused to clients due to professional negligence.
Home Insurance for Tenants: In most Belgian regions, tenants are required by law to have home insurance that covers their civil liability for fire and water damage. This is a crucial distinction from homeowners, for whom the insurance is highly recommended but not always a legal requirement.
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