Insurance laws Finland
Finland's insurance landscape is a blend of statutory, compulsory insurance and optional private policies. The legal framework is largely based on the civil law tradition and is influenced by European Union directives. The main regulator is the Finnish Financial Supervisory Authority (FIN-FSA).
Here's a breakdown of key aspects of Finnish insurance law:
Compulsory and Statutory Insurance
Motor Liability Insurance: This is a legal obligation for all vehicles registered for use in traffic in Finland. It covers personal injuries for all parties and property damage to the non-at-fault party in an accident. The law was revised in 2024 to implement a new EU directive.
Workers' Compensation Insurance: Employers are legally required to take out this insurance for their employees. It covers compensation for occupational accidents and diseases, including hospital treatment, loss of income, and rehabilitation. The Workers' Compensation Act specifies the rights and obligations of all parties.
Health Insurance: All permanent residents of Finland are covered by a statutory health insurance scheme, which is part of the social security system. It is financed by employers, employees, and the state, and covers a range of benefits including sickness and parental allowances, and reimbursement for medicine and private healthcare expenses.
Pension Insurance: The Finnish system includes statutory earnings-related pension insurance, which employers must arrange for their employees.
Other Compulsory Insurance: Other types of mandatory insurance include patient insurance (for healthcare professionals), and environmental damage insurance (for certain businesses).
Voluntary Insurance
In addition to the mandatory schemes, there are many types of voluntary private insurance available in Finland, including:
Home Insurance: Often a condition for renting a home, this covers damages from events like fire, water, and burglary.
Car/Casco Insurance: While motor liability insurance is mandatory, comprehensive car insurance (casco) is optional and covers damage to your own vehicle.
Private Health Insurance: While the public system is extensive, private health insurance can provide faster access to specialists and a wider range of treatment options.
Travel and Accident Insurance: These policies provide additional protection for medical emergencies, trip cancellations, and lost luggage, particularly for travel outside the EU.
Life Insurance: Used to provide financial security to next of kin in the event of death.
Key Legislation and Regulation
Insurance Contracts Act: This is the most relevant piece of legislation for private insurance in Finland, governing all forms of insurance except for statutory and reinsurance. It contains provisions on the rights and obligations of both the insured and the insurer.
Act on Insurance Distribution: This act, which came into force in 2018, regulates insurance distributors, including agents, brokers, and insurance companies themselves. It sets requirements for professional competence and conduct of business, and aims to protect consumers.
Finnish Financial Supervisory Authority (FIN-FSA): The FIN-FSA is the main government body that regulates and supervises insurance and reinsurance companies. It ensures that these companies have the financial means to fulfill their obligations and also issues binding guidelines on their activities.
Dispute Resolution
Insurance-related disputes are handled by general courts. However, the Finnish Financial Ombudsman Bureau (FINE) also provides non-binding solution recommendations for disputes.
RELATED Blog
0 comments