Self-employed person's voluntary insurances

Voluntary insurance for the self-employed person's working hours

A self-employed person who has taken out a compulsory or voluntary self-employed person’s pension insurance policy can also take out a voluntary working hours insurance policy against occupational accidents and diseases under TyTAL. The insurance will cover the same self-employment as the pension insurance policy. However, the insurer can reject the application for a self-employed person's voluntary working hours insurance if it has outstanding uncontested receivables for the applicant. 

Compensation for loss of earnings or the survivors’ pension paid from the self-employed person’s voluntary working hours insurance is based on the confirmed income in the self-employed person’s pension insurance and valid on claim date. 

If the confirmed income in the pension insurance equals the maximum amount determined in the Self-Employed Persons’ Pensions Act, the insured person can apply for the insurer to confirm a larger amount of annual earnings to be declared for the voluntary working hours insurance, subject to the provisions of section 112 of the Self-Employed Persons’ Pensions Act. However, annual earnings cannot be higher than the annual confirmed income corresponding to the self-employed person’s work input. This annual income confirmed by the insurer will be the basis for compensation for loss of earnings and the survivors’ pension, valid on the claim date. 

Voluntary working hours insurance for self-employed persons under 18 years of age

A self-employed person under 18 years of age who meets the requirements laid down in section 3 of the Self-Employed Person's Pensions Act is entitled to take out a voluntary working hours insurance policy. In this case, the annual earnings are confirmed to equal the annual earned income corresponding to the self-employed person’s work input, in accordance with the principles laid down in the Self-Employed Persons' Pensions Act. 

This annual earned income confirmed by the insurer will be the basis for compensation for loss of earnings and the survivors’ pension. 

Extending the validity of a voluntary working hours insurance for self-employed persons aged 68 and above

A self-employed person who continues in self-employment after the age of 68 can apply for the insurer to extend the validity of the voluntary working hours insurance when the self-employed person’s pension insurance expires. In this case, the insurer confirms that the annual earnings of the voluntary working hours insurance equal to the annual earned income corresponding to the self-employed person’s work input. 

Expiry of the self-employed person’s voluntary working hours insurance

As the self-employed person’s voluntary working hours insurance is linked to the pension insurance, it usually expires at the same time as the pension insurance. However, the insurer can, upon application, extend the validity of the voluntary working hours insurance if the self-employed person continues in self-employment after the age of 68. 

Since the working hours insurance expires at the same time as the pension insurance, it can expire retrospectively. However, if the self-employed person's pension insurance does not become effective because the self-employment has not continued without interruption for at least four months, the voluntary working hours insurance does not expire retrospectively but continues until the date when the self-employment ends. 

A self-employed person may terminate a voluntary working hours insurance in writing at any time; however, the termination will take effect at the earliest from the date the insurance company receives the notice of termination. The insurance company has the right to terminate the insurance if the self-employed person has failed to pay an outstanding premium or deliberately provided false or incomplete information for the purpose of processing a claim or determining an insurance premium in order to obtain, for himself or herself or for others, illegal financial gain. 

The insurer terminates the policy in writing. The insurance policy expires 30 days from the date the termination was sent. When the cause of the termination is a failure to pay the insurance premium, the policy will not expire if the policyholder pays the outstanding premium before the end of the notice period. 

Self-employed person's voluntary leisure-time insurance

A self-employed person who has taken out voluntary working hours insurance policy may include in the insurance a voluntary leisure-time accident insurance policy. The insurance policy must be taken out from the insurance company which underwrites the working hours insurance. The leisure-time insurance cannot be taken out on its own. 

The coverage of a voluntary leisure-time insurance extends to accidents that are not deemed compensable as occupational accidents. Compensation for loss of earnings and the survivors’ pension is based on the annual earned income reported for the working hours insurance, i.e. the confirmed income declared for the pension insurance or the annual earned income confirmed by the insurer. 

The insurance company may limit the insurance terms and conditions of a voluntary leisure-time policy to accidents that happen during recreational exercise or exclude certain recreational sports from the policy. Certain provisions of the Workers’ Compensation Act also limit the claim events compensable by the leisure-time insurance. Claim events not compensated by the leisure-time insurances include work-related pain, assault and road accidents.

The insurer can reject the application for a leisure-time insurance policy. They also have the right to terminate the policy on the grounds specified in the terms and conditions of the insurance. A self-employed person may terminate the policy in writing at any time; however, the termination will take effect at the earliest from the date the insurance company receives the notice of termination.

Modified 16.08.2016