Insurance laws Faroe Islands (Denmark)
The Faroe Islands have a unique legal and regulatory framework for insurance, distinct from Denmark's, even though they are part of the Kingdom of Denmark. Here's a breakdown of the key aspects:
Regulatory Authority
The Insurance Authority of the Faroe Islands (Tryggingareftirlitið): This is the national financial supervisory authority responsible for regulating insurance companies, pension funds, and a mortgage credit institution in the Faroe Islands. It ensures that the activities of these entities comply with laws, regulations, and proper business practices.
Market Structure
Historically, a closed market: The Faroese insurance market has historically been somewhat isolated. There was a principle that individuals residing in the Faroe Islands could not obtain insurance coverage from abroad, and foreign companies could not offer services in the country. This led to a near-monopoly for Faroese insurance companies.
Liberalization efforts: The Faroese government has been working to liberalize the insurance market. This involves updating insurance legislation to align with EU standards and allowing foreign insurance companies to operate in the Faroes, provided that Faroese companies have equal access to those foreign markets.
Health Insurance
Public Health Insurance (Heilsutrygd): The Faroe Islands have a public health insurance system called Heilsutrygd. All residents with a Faroese ID number are automatically covered and have the right to free or subsidized treatment from a wide range of healthcare providers, including general practitioners, specialists, dentists, and physiotherapists. Residents over 18 contribute to this system through a monthly fee and a percentage of their taxable income.
Travel and Health Insurance for Visitors:
Nordic Citizens and British Nationals: Citizens of the Nordic countries and the United Kingdom are generally covered by their respective public health plans for urgent care while visiting the Faroe Islands.
Other Nationalities: Travelers from other countries, including those from the EU, should be aware that the EU's health insurance card (EHIC or GHIC) is not valid in the Faroe Islands. It is strongly recommended that visitors from these countries obtain comprehensive private travel insurance that covers medical costs, including potential medical repatriation.
Other Types of Insurance
Unemployment Insurance: The Faroese unemployment insurance fund, called Arbeiðsloysisskipanin (ALS), is compulsory for all employees between the ages of 16 and 67. Both employers and employees contribute to this fund.
Employee's Insurance: Faroese employers are legally obligated to insure their employees against work-related injuries or diseases. This provides compensation in case of injury, disease, or death in connection with their work.
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