Voluntary leisure-time insurance for employees

An employer who has taken out workers’ compensation insurance for his employees can supplement the insurance cover with voluntary leisure-time accident insurance. The insurance pays out compensation to employees for accidents that take place during leisure time. With certain restrictions listed in the chapter Restrictions on leisure-time insurance, the amount of compensation is equal to that paid out for accidents at work.

The insurance company may limit insurance cover to only include accidents that occur during recreational exercise instead of all leisure time, exclude certain recreational sports from the insurance policy, and limit the persons being insured.

The insurer can reject the application for a leisure-time insurance policy. The insurer also has 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.

Restrictions on leisure-time insurance

No compensation is paid for an accident if the employee’s work and employer’s obligation to pay remuneration have been suspended for an uninterrupted period of more than 30 days at the time of the accident. Nor will compensation be paid for an accident that happens after this time limit during sick leave, care leave, temporary lay-off, or similar, even though the employment contract is still valid.

With regard to compensation for loss of earnings and the survivors’ pension, only earnings paid by the employer that took out the policy are taken into account.

Certain provisions of the Workers’ Compensation Act limit the claim events covered by leisure-time insurance. Claim events not compensated by leisure-time insurance include pain induced by work-related postures, assault, and road accidents.

Compensation for loss of income paid under leisure-time insurance are subsidiary to compensation paid under the Health Insurance Act and pensions paid under earnings-related pension legislation. Subsidiarity means that the amount which the employee would be entitled to receive for the same period of disability under the Health Insurance Act on earnings-related pension legislation is deducted from the compensation for loss of income.