The Netherlands Insurance Information

CIA link to demographic/economic data on the Netherlands

General Netherlands Insurance Information

• Compulsory Insurance:
  
  1. Third Party Automobile Liability;
  2. Workers’ Compensation (Social Security Scheme);
  3. Hunter’s Liability;
  4. Nuclear Liability;
  5. Pension.
• Non-Admitted Insurance:
  Permitted except for compulsory coverages. The are also no restrictions on the servicing of non-admitted policies by brokers or claim adjusters.
• Policy Wordings & Rates / Tariffs Controlled:
  Insurers are not required to file wordings or rates.
• Policy Language:
  Dutch although Marine policies are often written in English.
• Types of Insurance Restricted to Government Institutions:
  A schedule of Social Benefit coverages including basic disability.
• 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 is available.
• Currency Restrictions / Exchange Controls:
  No restrictions.
• Policy Period:
  Annual is customary but longer periods of 3, 5 and 10 years are available. Long Term Agreements (LTAs) are available.
• Cancellation Provisions:
  90 day written notice is required for mid-term cancellations of annual policies. Longer term policies generally have annual cancellation provisions.
• Premium Tax, etc. paid by Insured:
  7.5% premium tax on all lines except for Surety Bond and Credit, Life, Pension, Personal Accident, Aircraft, Goods in Transit. There are no fire brigade taxes, federal taxes or stamp duties.
• Insurance Companies:
  
• Brokers:
  Brokers are common. There is also an efficient agency system in The Netherlands.
• Brokerage Commissions:
  Fire (Industrial) - 15-20%; Liability - 25%; Automobile - 20%; Personal Accident - 25%. Commissions cannot be paid to foreign brokers not licensed in The Netherlands.
• Broker of Record Letters:
  Required for the transfer of business. Newly appointed brokers will not earn commissions on business placed by the previous broker.
• Reinsurance:
  No restrictions known.
• Local Natural Hazards:
  Windstorm & Flood.
• Other Information:
  Additional detailed information on insurance and business practices is available by e-mail: info@isn-inc.com

Property Insurance

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

Boiler & Machinery / Machinery Breakdown / Engineering

• Wordings:
  Local, UK, U.S. forms available. Boiler explosion may be covered under the Fire policy. Inspections are required by Government Inspectors.

General / Public Liability

• Available Wordings:
  Comprehensive General / Public Liability including Product Liability and Employer’s Liability.
• Comments:
  Policies can be written on an occurrence basis. Non-Owned Automobile coverage is a usual extension of coverage. Defense costs are covered. The Territorial designation is generally worldwide providing suit is brought in the Netherlands.

Automobile / Motor

• Compulsory Limits:
  Euro 1,000,000 Combined Single Limit (CSL).
• Comments:
  Coverage applies to the Insured and any licensed individual driving with the Insured’s permission. Passengers are deemed to be Third Parties and therefore covered. Fleet discounts are available.

Workers’ Compensation

• Comments:
  This is a compulsory coverage and coverage is provided by the Government Social Security Scheme. All workers (including maritime) are protected. Extra-Territorial, Medical Expenses and Occupational Disease benefits are provided under the Scheme. Employees have the option to sue.

Marine

• Available Wordings:
  Local, UK & U.S. Cargo forms closely follow the Institute of London Underwriters. Hull is written on Dutch policy wordings. War Risks rates follow the London scale.

Crime

• Available Coverages:
  Available - various local and foreign forms. Theft and Burglary are included under the Fire policy subject to a deductible.