Cyprus Insurance Information

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General Cyrus Insurance Information

• Compulsory Insurance:
  
  1. Workers’ Compensation
  2. Third Party Automobile Liability
• Non-Admitted Insurance:
  Prohibited except for Marine and Aviation Hull. Exceptions possible with permission from the Superintendent of Insurance.
• Policy Wordings & Rates / Tariffs Controlled:
  Third Party Automobile Liability rates are subject. No other tariffs exist at present.
• Policy Language:
  Greek and English.
• Types of Insurance Restricted to Government Institutions:
  
• Policy Currency:
  area under government control: Cypriot pound (CYP); euro (EUR) after 1 January 2008 area administered by Turkish Cypriots: Turkish New lira (TRY)Currency Restrictions / Exchange Controls:
  Subject to restrictions but properly done there should be no delays in receiving treaty balances due or facultative premiums.
• Policy Period:
  Annual but Long-term Agreements (LTAs) are available.
• Cancellation Provisions:
  Usually 7 days written notice.
• Premium Taxes, etc. paid by Insured:
  Stamp Duty is not in excess of .50 Cypriot Pounds except Life business which can be as high as 5.00 Cypriot Pounds. A 3% surcharge on Motor to Motor Insurers Fund.
• Insurance Companies:
  All insurers must be members of the Insurance Association of Cyprus. Foreign ownership subject to Government approval.
• Brokers:
  
• Brokerage Commissions:
  
• Broker of Record Letters:
  
• Reinsurance:
  No compulsory cessions or restrictions on outward reinsurance. Treaty reinsurance is subject to approval and scrutiny of the Superintendent of Insurance.
• Local Natural Hazards:
  
• Other Information:
  

Property Insurance

• Fire:
  Standard policy includes Lightning. Usual exclusions are: EQ, Volcanic Eruption, Typhoon, Hurricane, Cyclone, Riot and Explosion. Special Perils are available for an additional premium. ‘Fire following’ is not covered by the standard fire policy.
• All Risk:
  Available for construction works.
• Coinsurance:
  Available.
• Blanket Insurance:
  
• Business Interruption:
  
• Replacement Cost:
  Available.
• Discount for fire protection equipment / systems: Available.

Boiler & Machinery / Machinery Breakdown / Engineering

• Wordings:
  Boiler Explosion, Machinery Breakdown and Business Interruption coverages available. UK forms are usual. Boilers must be inspected and certified each year by Government Inspectors.

General / Public Liability

• Available Wordings:
  Employer’s Liability available.
• Comments:
  

Automobile / Motor

• Compulsory Limits:
  Third Party Liability for bodily injury to third parties including passengers is compulsory and unlimited in amount.
• Comments:
  Motor Act extended in 1992 to enforce unlimited liability for all passengers except the driver of a vehicle and Third Party Property damage was also introduced for an amount of Cypriot Pounds 50,000. Buses, taxis and self-drive rental cars are covered by the Cypriot Hire Risks Pool. No claim discounts are available.

Workers’ Compensation

• Comments:
  Compulsory under State Security Scheme.

Marine

• Available Wordings:
  

Crime

• Available Coverages:
  Theft, Burglary, Fidelity and Surety available. Theft is automatically covered under the Homeowners policy.