Insurance in Luxembourg is probably one extra thing that you are going to like about this country aside from its great public transport system and other surprises. It is only a reasonable thing for anyone who wishes to enjoy a smooth and stress free stay in Luxembourg to take an insurance cover. The country is small, that is a fact but inside its size could be risks that may literally wipe away your coffers. So, insurance is the security that is badly needed.
Insurance in Luxembourg is not anything ornamental or a mere luxury to boast about. Instead, it is a high level show that a person is particularly aware of likely risks. Moreover, in some way insurance is a source of collecting funds as well as encouraging savings. The mandatory insurance in Luxemburg includes car insurance, health insurance, and social insurance.
Health Insurance Luxembourg
Like other countries such as Lithuania, health insurance is mandatory in Luxembourg. In case you are moving to Luxembourg, it is important its health care system. Besides, one must understand the amount of money deducted from their salary to go towards healthcare.
The health system in the nation is among the best in the world. All the citizens get health coverage as the employers and employees making contributions towards the medical costs. About 90% of the health care are covered with the government. Unfortunately, some people opt to have the private insurance policies in covering the medical fees that the government does not cover.
The public health insurance covers working population, dependents, different nationalities, and students and the elderly. Moreover, the public health insurance covers various things including doctors’ appointments including hospital stays and doctors and dentist appointments. Also, the government covers part of the medicines.
Some people in Luxembourg do take private health insurance because they do cover costs including medical services, dental treatment, eye care, and hospital outside the nation. For the residents of Luxembourg who do not have other insurances and are unemployed or are low-income earners, the government helps in covering age related illness, handicaps, and costs of disease.
In Luxembourg full unemployment benefit can be claimed by an individual losing their job. However, the person has to registered at a job seeker with Agence pour le développement de l’emploi – ADEM (National Employment Agency). For one to get the benefits, one should meet the following conditions:
- Worked full time or part time at least 16 hours weekly with the same employer
- Be between 16 and 64 years old
- Been subjected to internal reclassification declaration and the contract expired because:
- The remaining income is less than 150%of unskilled workers social minimum wage
- 1st reclassification pertains to one or even more jobs that total to 16 hours weekly
- Have worked in Luxembourg for about 26 weeks
- Be out of work involuntarily
- Have registered as a job seeker
- Fit to work, that is can accept any job offers in the job market
- Be domiciled in Luxembourg when one gets the notification of dismissal
The number of benefits is equal to:
- 85% of the gross salary for the past three months before being unemployed
- 80% of gross salary for the past 3 months before being unemployed
The third-party insurance is mandatory for the car owners in Luxembourg. It covers the damages caused to other individuals as well as their property. Unfortunately, this insurance does not cover one’s own car.
As a resident of Luxembourg, one can also take comprehensive car insurance. Even though it is not a legal requirement, it is good as it covers damages to your own car or even theft. Comprehensive insurance isgood as it offers financial security when something happens to the car.
The main types of home insurance in Luxembourg include content and building insurance. The building insurance covers the permanent fixtures including bathroom, kitchen, ceilings, floors, and walls units. On the other hand, the contents insurance covers the movable assets including jewellery, electronic goods, clothing, and furniture.
The home insurance also covers an individual against the damage caused by explosions and fire. Moreover, it covers one against the damage caused by hail, storms, glass breakage, and water damage. Apart from these, it covers the insurer against theft and electrical damage.
Life insurance is good for every Luxembourgian resident. It plays a role in protecting the family in case of the breadwinner’s or partner’s death. The other benefits of taking life insurance in the nation include getting income replacement for the lost salary years and paying off the home mortgage.
When traveling to and from Luxembourg, it is important to have a travel insurance. Having a travel insurance means that you get refunded in case of trip interruption or cancellation. Besides, there is annual assistance that takes good care of a traveller in case of an accident or illness during your holidays. The other benefits that one can get by taking travel insurance is 24-hour support service and coverage for personal belongings and baggage.
The health of a pet is priceless. Unfortunately, when there is illness or even accident, the costs of going to the veterinary may be high. Therefore, that is where the pet insurance comes in. The insurance covers vaccination, veterinary fees, sterilisation costs, board and lodging expenses, animal ambulance costs, and the search expenses.
The conditions to meet before Taking Pet Insurance include:
- The owner to be a Luxembourgian resident
- The animal should be over three months and below 7 years of age
- The animal should not be intended for breeding or sale
- After identification of the pet, registration happens at the commune residence
- The animal should also be up to date with the vaccination terms
The legal insurance enhances access to justice and law by offering legal advice as well as covering the legal dispute costs. The party that took the case to court does not matter. Moreover, the insurance makes the legal fees more affordable in case of a dispute.
Family or personal liability insurance
In Luxembourg, the personal liability insurance protects an individual as well as the family in case one is responsible for property damage bodily injury. The claims of personal liability include legal fees and medical fees. However, the personal liability does not cover the liability coming from automobile accident and injuries intentionally caused.
Popular insurance companies in Luxembourg
- Agence Foyer – SOARES MIGUEL
- AIG Europe Limited (Succursale de Luxembourg)
- AXA Luxembourg
- Commissariat aux Assurances (CAA)
- Agence Générale Allianz Thommes Luxembourg
- European Captive Insurance and Reinsurance Owners’ Association
- Primelux Insurance SA
- West of England Insurance Services