Belgium Insurance Information

CIA link to demographic/economic data on Belgium

General Belgium Insurance Information

• Compulsory Insurance:
  
  1. Third Party Automobile Liability;
  2. Workers Compensation
  3. ‘No-Fault’ Liability for property owners with free access to property;
  4. Hunter’s Liability;
  5. Nuclear Liability for power facilities.
• Non-Admitted Insurance:
  Permitted except for compulsory coverages.
• Policy Wordings & Rates / Tariffs Controlled:
  Compulsory coverages are controlled.
• Policy Language:
  Flemish (Dutch), French or English.
• Types of Insurance Restricted to Government Institutions:
  None.
• Policy Currency:
  Euro. U.S. Dollar insurance is available.
• Currency Restrictions / Exchange Controls:
  No restrictions.
• Policy Period:
  Annual (customary), 3, 5 and 10 year policies are available. Long Term Agreements (LTAs) are available.
• Cancellation Provisions:
  90 day prior written notice.
• Premium Tax, etc. paid by Insured:
  9.25% for most lines except

  Marine and International Transit which is reduced to 1.4%. Group life is 4.4%. Levy of 6.5% on Motor and Fire policies for Finds National de Reclassement des Handicapès (INAMI) and further on Motor Third Party policies for the Red Cross and for the Institut National D’Assurance Maladie-Invalichitè. Total charges on Motor Liability including levy and tax is 22 – 27%. No tax for reinsurers.

• IPT on credit insurance abolished – The 9.25% insurance premium tax on credit insurance has been withdrawn.  Any payments of IPT by the insured should be refunded.  Let us know if you need further details. (June 12, 2009)

• Insurance Companies:
  
• Brokers:
  Belgium is a broker market.
• Brokerage Commissions:
  Fire - 15-30% (Large Industrial risks - 15%);
  Automobile - 10-20%;
  General / Public Liability - 15-20%;
  Accident & Health - 12-25%;
  Boiler & Machinery / Engineering - 15%;
  Marine - 17.5%.
• Broker of Record Letters:
  Common practice but not mandated by law.
• Reinsurance:
  No restrictions.
• Local Natural Hazards:
  Flood, Windstorm.
• Other Information:
  

Property Insurance

• Fire:
  Standard fire perils include - fire, lightning, aircraft, explosion, storm / tempest, riot / civil commotion, windstorm / hurricane, vehicle impact, weight of snow / avalanche. Earthquake, flood, and malicious damage are available in the market for an additional premium charge.
• All Risk:
  Available.
• Coinsurance:
  100%. Note: A policy can be voided if underinsurance exceeds 10%.
• Blanket Insurance:
  Is allowed in certain cases.
• Business Interruption:
  Usually follows UK Loss of Profits wording. U.S. Gross Earnings is available.
• Replacement Cost:
  Available.
• Discount for fire protection equipment / systems: Premium reduction available. The better the protection the larger the discount (up to a maximum of nearly 65%).

Boiler & Machinery / Machinery Breakdown / Engineering

• Wordings:
  Local and International forms accepted. Coverage can include Business Interruption. Boiler explosion can be covered under the fire policy. Inspections are required by Government approved Inspectors.

General / Public Liability

• Available Wordings:
  General / Public Liability available
  
• Comments:
  Napoleonic Code is the principal basis for Belgium’s legal system. Tenant’s and Neighbor’s Liability can be endorsed to either the

  General / Public Liability

  Policy or the Fire (Property) contract. Both occurrence and claims made forms are found in the Belgian market.

Automobile / Motor

• Compulsory Limits:
  Unlimited except for BF50 million limit for damage caused by fire and explosion.
• Comments:
  Each vehicle must have its own policy. Rates for this compulsory coverage are controlled by the authorities. Coverage applies to the Insured and any licensed individual driving with the Insured’s permission. Passengers are deemed to be Third Parties.

Workers’ Compensation

• Comments:
  This compulsory coverage can only be written by approved Insurers. The standard coverage provides benefits for work related injuries. All employees (including Maritime workers) are covered. Extra-Territorial Benefits are included if foreign assignment is temporary. Medical Expenses are also included. It is compulsory for a company employing one person or more for 60 days per annum to effect

  Workers’ Compensation

  insurance, which is handled in the private sector. Cover for employees outside of Belgium and for injury during transit to and from work is granted under the standard policy. Foreign nationals paid from abroad are not covered. Standard cover includes death and disability benefits and medical expenses arising from injuries occurring at work.

Marine

• Available Wordings:
  Wordings follow Antwerp, Dutch or the Institute of London Underwriters. Cargo War Risk rates follow London scale.

Crime

• Available Coverages:
  Fidelity Guarantee (Blanket or Scheduled), Surety, Burglary, etc.