Insurance in Austria makes life of both visitors and residents easy. Austria as a country has a rich offering of culture, foods, attractions, nature and many more yet various risks may occur unexpectedly. It is just not so easy to enjoy the goodies in Austria while at the same time thinking about what may happen just in case your car is involved in an accident, you become sick, lose your job or any such risks. As is expected, you are already busy with so much in your life which is why insurances in Austria make it their responsibility to secure you against any financial losses in the event a risk occurs.
Insurances in Austria
For anybody living in Austria, it is a great decision to apply for and actually get an insurance cover. It is always said that better be safe than sorry; likewise, it is a great deal to protect yourself from being thrown off budget in case a risk occurs. Although somf forms of insurance are not a must in Austria, others are.
As a resident of Austria, you can chose the type of insurance that best fits your case. The different types of insurance available in Austria include health, car, social, and life. There are over 140 insurance companies in the state. In addition, although health insurance and homeowners are mandatory in Austria, the rest are optional.
In Austria, social insurance is regarded as the most significant insurance in Austria. The insurance protects an individual from varied risks in life, including old age problems, not being able to work, accidents, as well as illness. Therefore, the social insurance system mainly consists of three categories the statutory pension system, work accident scheme, and health insurance system.
The statutory pension insurance system
The three main pension systems in Austria are private, occupational, and state pensions. Currently, the retirement age for women is 60 years old while that of men is 65 years old. However, this does not mean that one cannot go for early retirement if they desire. Early retirement is possible for any individual who has a minimum of about 15 contributory years.
The state of public pension in Austria is pay as you go (PAYG). The people who are currently working, as well as employers, are the ones funding the system. As the employers contribute about 12.55%, the employees contribute 10.25%.
- The following are the reforms made in the Pension system in Austria to lower the pension burden:
- Increase of the contribution duration for getting a full pension from 40 to about 45 years
- Ending and discouraging early treatment by 2017
- Increase of contribution duration from 15 to 40 years
- Encouraging people to take late retirement to work past 65 years and offering incentives
- Establishing hardship fund in assisting individuals with pension payments that are below €1,000 monthly
The Statutory Health Insurance System
Almost all the residents are covered by health insurance. Statutory health insurance provides the insured as well as co-insured members of a family with protection in any case of an ailment. Compulsory health insurance is applicable to the pensioners, people who claim unemployment benefits, almost everyone in paid employment, and their dependents.
The following are the benefits of having health insurance:
- Cash and kind benefits for the new mothers usually referred to as maternity allowance
- Dentures and dental treatment
- Frequent check-ups for the young individuals
- Sickness benefit on offering financial security in case one is not able to work because of sickness
- Medical treatment, medical care at home, and inpatient treatment
- Reintegration benefits mainly for individuals returning to work after being sick for long.
The insured Austrian residents have an e-card that helps in verifying insurance coverage, and one should have it any time they are visiting a doctor. Apart from the benefits, patients are entitled to some payments. Some of the services that patients must pay for include dental bridges, orthodontic treatments, as well as treatment from private doctors. However, in some cases, part of the costs is usually reimbursed with the health insurance fund called Krankenkasse.
Statutory Work Accident Insurance Scheme-Sozialministerium
The insurance provides protection in the occurrence of accidents at work or consequences that come with it. In 1019, about 6.5 million were covered by accident insurance in the nation. Besides, it is considered as the liability of the employer because they take them for their employees. It just covers the accidents that are related to employment.
Below are the preventative works of statutory accident insurance
- Medical treatment if there are accidents
- Disabled individuals’ rehabilitation
- Compensation after occupational diseases and work accidents
- Pension payments
- Continued pay subsidies
- Doing research on the most efficient ways of fulfilling tasks
- Occupational diseases and work accidents prevention
- Funeral expense grant in case of death
Car Insurance in Austria
Like anywhere else, the moment you buy your car, whether new or not, it comes with a liability. The liability of owning a car comes when it causes an accident, needs repair or a replacement. Therefore, before one drives in Austria, they are supposed to get insured apart from knowing the road rules. Austria has varied car insurance policies that one may choose from, although Insurance Association Austria regulates them. One has to have third-party liability insurance, also referred to as Haftpflichtversicherung, before hitting the road.
The main forms of car insurance in Austria are full coverage and third-party liability insurance. The third-party liability insurance mainly covers damages on the other individual’s property or health. Also, partial coverage covers the damages from your car in the events of fire, theft, animal damage, shattered glass, and break-ins. Lastly, the full coverage covers all of the above two kinds of insurance and damages to the car after accidents.
Professional Liability Insurance
The aim of the insurance is to protect self-employed individuals and freelancers assuming a rise in the level of risk because of their professional activity in case they are exposed to damages claims. This type of insurance is usually recommended for professional and legal groups. For instance, errors and omissions are a kind of liability insurance where companies’ and individuals’ professional oversight leads to real financial loss.
The insurance covers damages inflicted unintentionally. Besides, depending on the agreed terms, it gives compensations for damages due to gross negligence. Therefore, insurance is highly recommended for freelancers, including interpreters, planning, insurance, and financial sectors.
This type of insurance is mainly divided into two, namely household insurance and homeowners’ insurance. The household insurance or haushaltversicherung protects the movable belonging, including personal equipment, clothing, furniture, and electronics. On the other hand, homeowners’ insurance or Eigenheimversicherung protects external property as well as internal fittings, showers, kitchen units, and structure.
In Austria, homeowners’ insurance is a must for any person owning a home. However, the household insurance can be taken if one needs it as it is optional. Surprisingly, most insurance companies sell both to their consumers so that they do not have to spend a lot of money on home insurance.
The two distinct forms of home insurance entail civil liability against injuries for third parties and accidents that take place in the house. Any person in the EU can use home insurance in another nation, and it only has to operate according to the EU guidelines. Moreover, household insurance does protect it from damages or theft.