Greece Insurance Information

CIA link to demographic/economic data on Greece

General Greece Insurance Information

• Compulsory Insurance:
  
  1. Social Security Scheme - IKA - when purchased, this is the Scheme;
  2. Third Part Automobile Liability.
• Non-Admitted Insurance:
  Prohibited, except for Ocean Marinewhen voyage is international and underwritten by Underwriters at Lloyd’s. Greece is a member of the European Union and therefore subject to EU Directives.
• Policy Wordings & Rates / Tariffs Controlled:
  Generally forms and rates are submitted to the supervisory authority for approval. Compulsory rates exist for fire, lightning, explosion, earthquake, riot / civil commotion, and malicious damage for risk under Drs 850,000,000. Risks with values in excess are free of tariff regulation.
• Policy Language:
  Greek for all lines except Marine which can be written in English.
• Types of Insurance Restricted to Government Institutions:
  Workers’ Compensation / Social Security Scheme; Crop and Animals.
• Policy Currency:
  euro (EUR) note: on 1 January 1999, the European Monetary Union introduced the euro as a common currency to be used by financial institutions of member countries; on 1 January 2002, the euro became the sole currency for everyday transactions within the member countries. U.S.$ insurance not available except for Ocean Hull and Goods in Transit when shipment is international and insured by Underwriters at Lloyd’s.
• Currency Restrictions / Exchange Controls:
  No restrictions but the exportation of foreign currency must be authorized by the Bank of Greece. All premiums and claim payments must be made in local currency.
• Policy Period:
  Annual. Long Term Agreements (LTAs) are available but rarely used.
• Cancellation Provisions:
  30 day written notice by either party.
• Premium Tax, etc. paid by Insured:
  20% - Fire perils and 10% for all other perils and coverages except no tax on MarineCargo. There is in addition a stamp duty of 2.4% for all coverages. Further each Insurer can charge a policy fee except for the tariff rated fire and automobile which are subject to a 10% fee.
• Insurance Companies:
  Insurers are obliged to join a number of Unions, Trade Groups and Insurance pools.
• Brokers:
  Brokers must be accepted by the Ministry of Trade. The use of Brokers is common in Greece.
• Brokerage Commissions:
  Property (tariff): 35-45%; Property (non-tariffed): 15-25%; Automobile: 8.5-15%; Liability: 15-25%; Accident: 20-37.5%. Note: Commissions cannot be paid to foreign brokers not locally registered / licensed..
• Broker of Record Letters:
  The larger risks tend to use BORs. It is a good practice regardless of size.
• Reinsurance:
  No longer any restrictions.
• Local Natural Hazards:
  Earthquake.
• Other Information:
  A 3.6% stamp duty will be assessed to all property claims in Greece. This duty can be insured.

Property Insurance

• Fire:
  Standard fire perils include - fire and lightning. Aircraft, explosion, earthquake, flood, storm / tempest burst water pipe, riot / civil commotion, malicious damage, windstorm / hurricane, vehicle impact, weight of snow / avalanche are available by endorsements in the market for an additional premium charge.
• All Risk:
  Available but only for risks exempted from the local tariff.
• Coinsurance:
  100%
• Blanket Insurance:
  Available.
• Business Interruption:
  UK and/or American forms available.
• Replacement Cost:
  Available but usually reserved for industrial risks. Actual Cash Value (ACV) is the norm.
• Discount for fire protection equipment / systems: Available. Negotiate fully.

Boiler & Machinery / Machinery Breakdown / Engineering

• Wordings:
  Local, UK and Munich Re. Consider a local fronting arrangement supported by a foreign reinsurer to obtain the most favorable and comprehensive cover when the risk is complex. Inspections are required.

General / Public Liability

• Available Wordings:
  General / Public Comprehensive forms available. Can include Contingent Automobile Liability, Product Liability, and Product Recall, etc. Pollution coverage is normally excluded: only sudden and accidental pollution cover can be purchased from some companies at an additional premium.
• Comments:
  Coverage can be written on an occurrence basis. Employer’s Liability comes under the State Insurance Scheme. Additional cover is available but not compulsory.

Automobile / Motor

• Compulsory Limits:
  Bodily Injury: Equivalent of 500,000 European Currency Units (ECUs). Property Damage: Equivalent 100,000 ECU.
• Comments:
  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:
  Compulsory for all employees and must be arranged with the State Social Security Fund (IKA). Additional insurance in excess of the IKA coverage may be purchased from the general companies’ market.

Marine

• Available Wordings:
  Policy forms and rates for War rates follow London scale and the Institute of London Underwriters conditions.

Crime

• Available Coverages:
  Fidelity, Burglary, Money & Securities, etc. and surety bonds.