Denmark Insurance Information

CIA link to demographic/economic data on Denmark

General Denmark Insurance Information

• Compulsory Insurance:
  
  1. Third Party Automobile Liability;
  2. Workers’ Compensation;
  3. Nuclear and non-nuclear power stations;
  4. Hunters’ Liability;
  5. Dog Liability;
  6. Third Party Aircraft Liability;
  7. Mortgaged Property.
• Non-Admitted Insurance:
  No restrictions except for compulsory coverage that must be placed in the Danish market.
• Policy Wordings & Rates / Tariffs Controlled:
  No tariff. Wordings are established by an association of Insurers for industrial risks.
• Policy Language:
  Danish.
• Types of Insurance Restricted to Government Institutions:
  None known.
• Policy Currency:
  Danish krone (DKK). U.S. $ insurance is available.
• Currency Restrictions / Exchange Controls:
  No restrictions other than transfer to other countries need to be approved by the Central Bank.
• Policy Period:
  Annual but in cases where the Insured deals directly with the Insurer longer periods are possible.
• Cancellation Provisions:
  30 to 90 days notice (check policy) prior to expiration. Also, cancellation can be effected 14 days after a claim.
• Stamp Duty & Premium Tax, etc. paid:
  There is a Stamp duty on all classes except Marine cargo / hull, aviation and transport credit/financial guarantee policies and Workers’ Compensation or where the policy sum insured is less than DKK 12,000 (US$2,056). Stamp duties can be either 14% of the premium or Krone .29 (US$0.05) per DKK 5,000 (US$860) of the sum insured. An additional duty will be assessed when values are increased.
• Premium Taxes:
  for Motor Third Party Liability a tax of 42.9% (or minimum 47.2% of claims) of the premium is payable while the premium tax of buses is 34.4% (or 37.8% of claims). A tax of DKK 60 (US$10.33) is charged annually on all cars in Denmark. The tax on hull insurance is 1% of the sum insured.
• Insurance Companies:
  
• Brokers:
  Agents and brokers operate in Denmark though it is primarily a direct market.
• Brokerage Commissions:
  The following commissions are representative and can be paid to anyone:
  Property, Liability: 10-15%;
  Automobile: 4.5%;
  Workers’ Compensation: 3%
• Broker of Record Letters:
  Required. Market practice.
• Reinsurance:
  No restrictions.
• Local Natural Hazards:
  Windstorm and Flood. As from May 1991, a law was enacted providing flood coverage to all insured people in Denmark. Insurers charge Krone 10 per property policy which is ceded to the flood fund.
• Other Information:
  

Property Insurance

• Fire:
  Standard fire perils include - fire, lightning, aircraft, storm / tempest, burst water pipe, windstorm / hurricane, vehicle impact and weight of snow / avalanche. Earthquake, flood, riot / civil commotion and malicious damage are available in the market for an additional premium charge.
• All Risk:
  Available and now common.
• Coinsurance:
  100%.
• Blanket Insurance:
  Available.
• Business Interruption:
  UK Loss of Profits and U.S. Gross Earnings forms are available.
• Replacement Cost:
  Available.
• Discount for fire protection equipment / systems: Available and negotiable.

Boiler & Machinery / Machinery Breakdown / Engineering

• Wordings:
  Generally follow UK Underwriters’ forms. Cost of inspections is included in the premium.

General / Public Liability

• Available Wordings:
  Comprehensive including Product Liability. Employer’s Liability is included in the mainstream wording.
• Comments:
  Policies can be written on an occurrence basis but claims made is mostly used. Product Recall coverage is not generally available. Limits can be expressed as Combined Single Limit (CSL).

Automobile / Motor

• Compulsory Limits:
  Bodily Injury: Krone 67 million per person, any one accident; Property Damage: Krone 13 million.
• Comments:
  Coverage applies to the Insured and any licensed individual driving with the Insured’s permission. Passengers are deemed to be Third Parties. A minimum property damage limit of DK 1 million per accident is compulsory.

Workers’ Compensation

• Comments:
  This compulsory coverage covers all employees and can only be written by authorized Insurers. Extra-Territorial Benefits are extended to all workers. Medical Expenses and Occupational Disease benefits are included in the coverage. Employees have the right to sue.

Marine

• Available Wordings:
  Local adaptations based on UK contracts. Mostly War Risks rates follow the Danish scale.

Crime

• Available Coverages:
  Broad collection of standard policies available.