Taking out an insurance policy
The insurance policy must be taken from an insurance company which, under the Finnish law, has the right to engage in workers’ compensation insurance business. Such insurance companies must be members of TVK. There are currently 12 such insurers. (TVK's member institutions)
When an insurance company receives an application for an employee insurance policy, the company cannot reject the application (granting obligation). The insurance policy can begin no earlier than on the date the insurance company received the insurance application, but it can begin later if agreed upon by the parties. The insurance must be valid when the work begins. An insurance policy cannot be taken out retrospectively.
The insurance covers all work commissioned by the employer and all employees at any one time (open policy). If a specific insurance has been taken out for a specific job or site (partial policy), the open policy will cover the activities excluded from the partial policy.
The insurance company gives the policyholder a confirmation of the validity of the workers’ compensation insurance.
The employer must display at the workplace the Workers’ Compensation Act and the information on the insurance company underwriting the policy.
Workers’ compensation insurance is usually made out as a continuous policy. In this case, the policy period is a calendar year. If the insurance policy enters into force during a calendar year, the first policy period ends at the end of the year following its entry into force. For example, if the policy begins on 1 July, the first policy period will end on 31 December of the next year.
When taking out a policy, the policyholder must provide the insurance company with the information it asks for determining the insurance premium. Such information includes the sector, the extent and type of the work, the company’s ownership structure and what effort has been made to improve occupational safety.
In addition, the insurance company will need to be provided with the information it requests for the insurance premium annually by the end of January. During the policy period, the policyholder must also inform the insurer of any material changes to the information it has provided. The insurance company must be provided with the information within 30 days of the change.
If the duration of the work or the work site do not exceed one year, the insurance policy can be drawn up for a fixed term. In this case, the policy period is the same as the validity period of the insurance policy. The insurance does not have to be terminated because it will expire by the agreed date.
However, if the work continues beyond that date, the policyholder must inform the insurance company about the continuation before the expiry date. The validity of the fixed-term insurance can be extended until the new expiry date, although for no more than 12 months.
If the work continues after the expiry date and the insurance company has not been informed of the continuation, the employer is guilty of failure to fulfil its insurance obligation.
Employees' group life assurance
The key labour market organisations have agreed on the provision of group life assurance coverage for employees. The employer must take out the insurance policy if there is a national collective agreement for the sector requiring group life assurance. Nearly all persons covered by the compulsory insurance under the Workers’ Compensation Act are also covered by group life insurance. The insurance policy must be taken out from the insurance company which underwrites the employer’s compulsory insurance under the Workers’ Compensation Act.
On average, the insurance premium is 0.07 per cent of the payroll. The insurance company charges the premium together with the workers’ compensation policy premium and credits it to the Employees’ Group Life Assurance Pool.
An employee’s group life assurance is valid during the employee’s working hours and leisure time. A benefit is to the beneficiaries paid upon the death of an insured employee. The claim is processed by TVK. Further information: trhv.fi