Luxembourg Insurance Information

CIA link to demographic/economic data on Luxembourg

General Luxembourg Insurance Information

• Compulsory Insurance:
  
  1. Third Party Automobile Liability;
  2. Nuclear operators;
  3. Hunters;
  4. Hotel operators;
  5. Windsurfers; and
  6. Parachutists, require compulsory Third Party Liability insurance.
  7. Third Party Liability is compulsory for sailing boats.
  8. Third Party Liability required for aircraft.
• Non-Admitted Insurance:
  Permitted for non-compulsory coverages (within the framework of the Second Non-Life Services Directive) with insurers from other EU countries. Coverages placed with non-EU insurers is prohibited.
• Policy Wordings & Rates / Tariffs Controlled:
  
• Policy Language:
  French or German.
• Types of Insurance Restricted to Government Institutions:
  
• 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
• Currency Restrictions / Exchange Controls:
  None.
• Policy Period:
  Long-term policies for up to 10 years are common (no premium discounts usually considered). Annual policies for some classes are available.
• Cancellation Provisions:
  90 days prior notice, or at anniversary for a long term policy.
• Premium Taxes, etc. paid by Insured:
  Policy fee LFr .50; receipt fee LFr .50. Life = 2% and Non-Life classes 4% except for Marineand 6% levy on Fire policies which covers Fire Brigade charges.
• Insurance Companies:
  
• Brokers:
  
• Brokerage Commissions:
  
• Broker of Record Letters:
  
• Reinsurance:
  
• Local Natural Hazards:
  
• Other Information:
  

Property Insurance

• Fire:
  Standard perils. Usual exclusions include: Fire directly caused by Riot, EQ, Flood, Windstorm, Volcanic Eruption, Storm. Debris Removal can be written. Fire Damage Liability for neighbors, tenants and landlords is covered under the Fire policy.
• All Risk:
  Construction contracts are usually written on this basis.
• Coinsurance:
  
• Blanket Insurance:
  Available.
• Business Interruption:
  Usually follows UK wordings but US Gross Earnings available for global programs.
• Replacement Cost:
  Available for buildings and Machinery & Equipment.
• Discount for fire protection equipment / systems:

Boiler & Machinery / Machinery Breakdown / Engineering

• Wordings:
  Cover follows UK, Swiss and French forms. Coverages available include: Machinery Breakdown, Business Interruption and Contract Works. Boiler Explosion is mostly insured under the Fire policy. Inspections of boilers, other pressure vessels, lifts and cranes by Government approved inspectors is compulsory.

General / Public Liability

• Available Wordings:
  Fire Damage Liability for neighbors, tenants and landlords is covered under the Fire policy. Nuclear operators, hunters, hotel operators, windsurfers and parachutists require compulsory Third Party Liability insurance.
• Comments:
  Employer’s Liability is available under General/Public Liability policy.

Automobile / Motor

• Compulsory Limits:
  Third Party Automobile Liability for Bodily Injury (unlimited) and Property Damage (fire and explosion limit LFr 50,000 – otherwise unlimited). Own Damage can be written subject to a deductible (excess).
• Comments:
  Contingent Liability cover is available to employers when employees use their private vehicles on company business. The normal policy covers the insured and to licensed persons driving with the insured’s permission.

Workers’ Compensation

• Comments:
  Coverage must be placed with the Government monopoly.

Marine

• Available Wordings:
  Third Party Liability is compulsory for sailing boats. War rates follow London Underwriters’ scale.

Crime

• Available Coverages:
  Theft, Burglary, Fidelity, Surety.