Insurance in Lithuania

Insurance in Lithuania

Insurance in Lithuania is not a luxury but an important thing that everybody should have. Although some insurances are a must have in Lithuania, most of them are free choice which means you decide for yourself to take them or not. A must or a free choice, having an insurance in Lithuania is good for your calm. You cannot be busy working on very many things and still have to keep worried about what may happen should you get sick, lose your job, lose a property and such.

Without overemphasis, insurance is important to all Lithuania residents who want to protect their families. Besides, it plays a significant role in protecting people’s assets and themselves from financial loss. Thus, Lithuania residents should take the different types of insurance, from medical to housing. Apart from the mentioned benefits, in some way, taking insurance helps in spreading risk to a large number of individuals.

Health Insurance Lithuania

Just like the other European nations, such as Finland, Lithuania has compulsory health insurance, also known as privalomasis sveikatos draudimas (PSD). The nation guarantees the insured residents free health care provision. Unfortunately, some of the medical procedures and medical tests are not covered.

The people covered with PSD include:

  • The people paying compulsory health insurance (those who are self-employed, working in business licenses, and the non-insured by the state or employer)
  • Individuals whose employer pays the compulsory health contributions
  • The people insured by the state (people registered through the Labour Exchange apart from foreigners with temporary permits residing in Lithuania

Every permanent resident in Lithuania should pay the PSD contributions. Besides, the foreigners living in the country and having permanent residence permits should pay the PSD contributions. The foreigners who are permanent residents cannot be insured with PSD unless they are employed.

European citizens who have European Health Insurance Card can get medical care as long as they are offered by specialists or general practitioners, subsidized medicine, and hospital treatment. However, it is important to have an EHIC proof of identity.

Lithuania residents can also take private health insurance. Private health insurance is good as it offers the residents with direct access to private specialists and doctors without GP referral. Another advantage is that one gets health care traveling with an individual. Besides, one can choose the place that they want to be treated. The other benefits of private health insurance are a second medical opinion, cover of the pre-existing conditions, and personal relationship manager.

Unemployment Insurance

Every employed individual in Lithuania must have unemployment insurance. Basically, the benefits are normally associated with one’s earnings before being unemployed. To qualify for the unemployment benefits, one should be insured for about 12 months in the past 30 months before signing the labor exchange.

The following conditions must be met:

  • One is a farmer or the partner, a household involved in individual activities known as the Personal Income Tax Act
  • One is employed in the employment contract, patent agreement, or authorship contract, including elected positions
  • Spouse of a civil servant or one in a professional military service
  • Not working due to taking childcare, leaving to look after a child 1 to 3
  • One is an Internal Service officer of the Prison Department of the Lithuanian Ministry of Justice and its subordinate institutions.
  • Parents or guardians of disabled individuals
  • A member of the Lithuanian armed forces.

In Lithuania, the unemployment benefits cannot be less than 23.27% of the minimum wage and not more than 58.18% of the average national wage. Payment applications are made to Employment Service or SoDra. Apart from the above conditions, one also must be:

  • Unemployed
  • Of a working age
  • Not engaging in full-time education except for the high school students
  • Registered with the Employment Service
  • Actively seeking work and is ready in accepting the offered jobs
  • Offer proof of achieving the minimum unemployment insurance period

Situations under which you cannot get unemployment benefit

  • Studying in a formal vocational education program or general education program
  • Reached the old-age pension age
  • Refused a good job offer for no valid reason
  • Failed to attend an appointment for no reason
  • The permit allowing an individual to live in Lithuania expires
  • Migrate from Lithuania
  • Filed application canceling Employment service registration
  • A court decision sanctions an individual or imposes penalties

Car Insurance

There are different types of car insurance In Lithuania, but the mandatory one is Lithuanian insurance TPVCA. The insurance is only valid in Lithuania, and when one is leaving the nation, they should have a green card. The insurance covers the material and physical damage to the third parties in case of an accident caused by the driver.

Apart from TPVCA, one can take the voluntary motor own damage insurance, also known as CASCO. It covers the following:

  • Burglary, robbery, and theft
  • Fire, explosion
  • Damages from the falling objects
  • Collision with an obstacle or another vehicle
  • Overturn and fall
  • Collision with animal or pedestrian
  • Malicious actions of the third parties

Home Insurance

Taking home insurance is a way of improving your home. Home insurance is important in Lithuania as it covers malicious damage, theft, natural forces, water, fire, and other damages caused to buildings. Moreover, the insurance covers neighbors, children, and household property. Some of the insurance companies have Emergency Home Assistance that helps when there is an emergency at home.

Life Insurance

In Lithuania, it is important to take life insurance as it helps one’s loved ones to make it through even the most difficult financial situations. Life does not last, and that is the reason we are dealing with the question regarding the way families will survive if the breadwinner is not around. Thus, taking life insurance is also a way of safeguarding the family.

Travel Insurance

Travel insurance is compulsory when visiting Lithuania, and it is also a way of protecting oneself. The benefits of taking this type of insurance include legal expenses, cancellation cover, and medical expenses. The insurance also covers luggage and personal possession and personal accidents.

Pet Insurance

Pets are the best humans; they give us companionship, friendship, and love. However, just like human beings, they may get sudden diseases, accidents, and health problems. Thus, pet insurance offers financial coverage when unexpected things happen to a pet. Also, in case the pet goes missing, one gets compensation.

Family or personal liability insurance

As a resident of Lithuania, it is important to take personal liability insurance. The reason is that it protects an individual as well as the family members in case they are responsible for property damage or bodily injury to the third party. In addition, the insurance covers the legal damages and costs needed in paying the compensation.

Popular insurance companies in Lithuania

  • Lietuvos Draudimas
  • Baltic Underwriting Agency BUNDA
  • Balto Link
  • Balcia Insurance SE
  • Ergo Insurance
  • Legator
  • ERGO Insurance SE Lietuvos filialas
  • Baltic Clipper
  • Compensa Life Vienna Insurance
  • Claims management
  • Mano turas