The court may also issue such order upon its own initiative (Articles 877–882, Judicial Code). When considering the appeal, the appeal court enjoys all the powers of the lower court. Financial Supervision Commission. Full and frank disclosure when preparing an application will be required, but the NBB is also pragmatic, for example, in the context of UK firms considering Belgium for their post-Brexit operations. In addition to the conditions applicable to (re)insurance … It is similarly forbidden for Belgian branches of non-EEA insurance companies to undertake both life insurance and non-life insurance activities, without any exception available. Federal Ministry of Education, Science and Research. There is a long stop limitation period of five years from the occurrence of the event which gives rise to the right to make a claim. For claims related to workplace accidents, mandatory sickness and disability insurance and occupational pensions, the labour court is competent. BELGIUM International Comparison of Insurance Taxation January 2005 Belgium – General Insurance Definition Definition of property and casualty insurance company Accounting A company that performs non-life and casualty insurance operations. covers common issues in insurance and reinsurance laws and regulations – including regulatory authorities and procedures, (re)insurance claims, litigation – overview, litigation – procedure and arbitration – in 39 jurisdictions. Links provided throughout to relevant sites Lastly, a 2019 legislative amendment has restored cross-border supply of (re)insurance from third countries, albeit subject to discretionary requirements set by the NBB and in international agreements, such as the EU-U.S. The Financial Services and Markets Authority monitors compliance with these rules. In practice, the award will often fall far short of the costs actually incurred. Pursuant to the Law of 2 July 2010 amending the Law of 2 August 2002 relating to supervision of the financial sector and financial services (the “2002 Law”), the National Bank of Belgium (the “NBB”) assumed responsibility for prudential supervision of the financial sector. The legislator’s primary concern is to protect the insured, but the 2014 Law also recognises that the insured’s behaviour may be a threat to the insurer and its interests are therefore protected, for example: certain provisions in relation to declaration of risk (Articles 58–60); exclusion of claims which have been intentionally caused (Article 62) and claims arising from war (Article 63); failure to pay the premium (Articles 69–72); and the insured’s duties in the event of a claim (Articles 74–76). non-EEA, (re)insurers. the method for selecting the arbitrator(s); the procedural rules (including the choice of language, the amount of the legal costs to be borne by the losing party, confidentiality, the right to appeal and the period of time set for the proceedings); whether the arbitral tribunal may proceed as a mediator; and. The Belgium Insurance Report has been researched at source and features Fitch Solutions' independent assessment and forecasts for the insurance sector. - The Belgian insurance industry is regulated by the National Bank of Belgium and the Financial Services and Markets Authority. There are two particularly important examples: motor insurance (Law of 21 November 1989 relating to compulsory insurance of motor vehicle liability); and insurance for workplace accidents (Law of 10 April 1971 on workplace accidents). Authorisation must be used within 12 months, and without interruption for a period exceeding six months, or it will be forfeited. If you want to individually select which cookies we can set, please click "Select preferences" below. Parties can agree on a claims-made policy, except in private civil liability insurance, non-industrial fire insurance and civil liability insurance for motor vehicles. To the video. Citizens are particularly well-covered when it comes to health insurance in Belgium, with data from the European Commission showing that state insurance covers 99% of the population. Please give examples. civil liability in the nuclear energy sector. Aggregate statistical data. Following the financial crisis of … In practice, the service provider’s home country regulator should have concluded a memorandum of understanding concerning cooperation arrangements with the FIN-FSA; Other disclosures regarding the insured’s privacy/personal data may be requested, but may be open to challenge on grounds of breach of fundamental rights. Hungary changes rules for drone operations, Life after Brexit: an update on social security coordination. This website uses cookies so that we can provide you with the best user experience possible. Health insurance contributions are 7.35% of gross salary (3.55% from your own … A commercial case will typically take 12–24 months from the date of issue of the initial writ to first instance judgment. FCA climate risk plans welcomed by Pensions Minister. If, because of the insured or beneficiary, the effects of subrogation are denied to the insurer, the insurer may claim repayment of the indemnity paid up to the amount of the harm suffered. There are also variants of compulsory insurance, for example, a non-compulsory insurance may become compulsory if a certain risk is covered, e.g. As of 1 January 2021, the United Kingdom of Great Britain and Northern Ireland (UK) will be considered as a third country in respect of the EU Member States.This will lead to changes in Hanfa's registers concerning financial services providers from the … Contact Prudential supervision . See question 4.6 above. Session cookies only last for the duration of your visit and are deleted from your device when you close your internet browser. Belgian law recognises the validity of liability insurance for corporate officers. It was replaced by a new agency, the Financial Services and Markets Authority (FSMA) on 1 April 2011 as part of a restructuring of the financial regulatory system in Belgium. Although the supervision of these companies is based on the ‘home country control’ principle, the NBB retains the power of supervision over these companies and must inform the European Commission if certain measures are taken against such companies. 4.8 Is interest generally recoverable in respect of claims? Our objective is to ensure financial stability, consumer protection and market integrity. 43 para. Arbitration for disputes arising out of certain classes of insurance may be permitted: a 1992 Royal Decree in fact provides that contracts of insurance for numerous classes of risk may include arbitration clauses. Authorisation must be granted or refused within a period of six months from the date of receipt by the NBB of a complete application. Authorisation is granted on fulfilment of statutory and regulatory conditions. We do this to optimise the mix of channels to provide you with our content. The Prudential Regulation Authority (link is external) (PRA) is the prudential regulator of around 1,500 banks, building societies, credit unions, insurers and major investment firms. Case law includes criminal records, health (in particular, AIDS), medical secrecy and discrimination on grounds of gender. ... Prudential supervision of insurance and reinsurance companies . Correspondence between an attorney and his client (under (a)), or among attorneys (in respect of (b) and (c) above), is in principle privileged, i.e. Cooperation agreements in Belgium. 4.2 Can a party withhold from disclosure documents (a) relating to advice given by lawyers, or (b) prepared in contemplation of litigation, or (c) produced in the course of settlement negotiations/attempts? A further, recent example is a Law of 4 April 2019 which extends rules on unfair contract terms and unfair commercial practices to the B2B sector. the “Insurance Distribution Directive” (“IDD”), in particular by amending Part 6 of the 2014 Law on insurance mediation and distribution. As noted above, the 2014 Law is the key text and sets out the primary source of substantive law. Whilst health insurance is not compulsory, the Regulatory Authorities stipulate mandatory cover for certain conditions. compulsory appearance of witnesses when the arbitral tribunal has decided to hear witnesses. The Banking, Finance and Insurance Commission ( CBFA) ( Dutch: Commissie voor het Bank-, Financie- en Assurantiewezen, French: Commission Bancaire, Financière et des Assurances) was the financial regulatory agency for Belgium. If a firm is not authorised to provide investment services and activities, it is not allowed to provide them. The Insurance Supervision Ordinance sets out the criteria used to determine whether an insurance intermediary is tied and hence not subject to mandatory registration (Art. The 2016 Law and its implementing decrees (principally, the Royal Decree of 22 February 1991 regarding the general regulation on the supervision of insurance undertakings – the “1991 Decree”) provide a comprehensive list of the documentary requirements for an application for authorisation. Lists. Insurance Europe, an industry body, said EIOPA’s “disappointing” proposals would make the capital rules more conservative and create a less competitive sector. Under a liability insurance, a third party can file a direct claim against the insurer for compensation for damages suffered as a result of an insured event. 1.5 Are companies permitted to indemnify directors and officers under local company law? In commercial and criminal proceedings, rules of evidence are more flexible and witness evidence is accepted at all times (e.g. News Changes in Hanfa's registers due to Brexit. (Art. The claimed monies must be paid directly to the third party with no possibility for any creditors of the insured to claim any part of such payment. The industry has recently developed a code of conduct including criteria to assess whether companies which receive inducements comply with the requirement to act honestly, fairly and professionally. Details concerning the tools in use are in our privacy policy. In the absence of any contractually agreed interest rate, the interest rate shall be the statutory rate. 1.2 What are the requirements/procedures for setting up a new insurance (or reinsurance) company? It is not general practice for Belgian courts to appoint a mediator other than on request by the parties. Are there any potential costs advantages in making an offer to settle prior to trial? Parties can always settle the dispute on their own initiative. Regulatory and Supervisory Framework. Furthermore, a party should not, in principle, meet separately with the court-appointed expert, as this could give rise to a suspicion of bias. Such companies can operate with the licence obtained in their country of origin, but nevertheless need to observe Belgian legal provisions protecting the general good. Procedural rules require, in principle, the presence of the witness, but certain exceptions apply, for example where a witness has been threatened in criminal proceedings. The insurance contract can also impose a specific obligation on the insured and can link a loss of right to the non-respect of this obligation insofar there is a causal link between the non-respect of the obligation and the occurrence of the loss. The applicable rate will be that provided in the contract, subject to reduction by the court, failing which the general statutory rate applies (2% in 2019 for civil claims and 8% for commercial claims). of insurance regulatory and supervisory systems in OECD countries, 12 Asian economies and 14 Central and Eastern European countries (CEEC) and New independent states (NIS), which are covered by the programme of the OECD Centre for co-operation with non Members. This is extremely important in Belgium because most insurance products are governed by mandatory provisions of the Insurance Act of 4 April 2014. Learn about insurance industry regulations under the FCA. By way of example, the 2016 Law prescribes: the form of a Belgian insurance company (essentially, joint stock or mutual) and the scope of the objects of the company; that the constitutive documents must avoid any provision detrimental to insureds, contracting parties and beneficiaries; and that restrictions apply in relation to loans in any form whatsoever to directors or management. Belgium. Certain obligations arising from the AssurMiFID legislation continue to apply, in particular those relating to the intermediary’s conflict of interest policy, information on costs and charges, the customer file, registration of all insurance distribution activities and the presumption of a causal link applicable in the event of a breach of various rules of conduct. Registration is mandatory for insurance intermediaries who are not tied to an insurance company, either legally or commercially or in any other way. Austrian Financial Market Authority. FINMA and supplementary health insurance. As a prudential regulator, it has a general objective to promote the safety and soundness of the firms it regulates. Liability and insurance requirements 33 2.3.7. Disclaimer In terms of the Company Service Providers Act, 2013, persons who are in possession of a warrant or equivalent to carry out the profession of advocate, notary public, legal procurator or certified public accountant are not required to apply for registration to the MFSA in order to provide company services in or from Malta. Specific legal provisions do, however, exist for lawyers and bailiffs: in order to persuade litigants to consider alternatives to judicial proceedings, they have a duty to inform potential litigants about mediation, and other forms of alternative dispute resolution. Belgium ranked fifth in the 2018 Euro Health Consumer Index. Before the insurer commences activities in Belgium, its home country regulator must submit a file to the NBB. Some functionality will not work if you don’t accept these cookies. Regulation 1286/2014 on key information documents for packaged retail and insurance-based investment products, applies in Belgium (effective since 1 January 2018) and, in particular, requires provision to the prospective insured of a “key information document” setting out harmonised pre-contractual disclosures. Lloyd’s Europe brings the scale, expertise and capacity of the world’s specialist insurance market closer to its customers in Europe through a locally staffed and regulated insurer. The 2014 Law requires him to declare what “he. The Judicial Code confers jurisdiction on the court of first instance for all matters except those which are reserved to other courts. The primary legislative text for the authorisation and supervision by the NBB of (re)insurers is the 2016 Law. The Insurance and Reinsurance Law Review - Edition 8, Insurance and reinsurance play an important role in the world economy. The president of a civil court of first instance or of an enterprise court may grant a provisional order in all matters of extreme urgency (except for those which by law are removed from the court’s jurisdiction). The court registry fee is payable in full by the plaintiff, except: Lastly, the court may grant an award for costs, i.e. Subrogation may not prejudice the rights of the insured or beneficiary who has only been partly indemnified. Furthermore, with regard to third-country applicants, the NBB will fulfil its duty, under international reciprocity arrangements, to inform the European Commission of authorisations granted to such companies. In some cases, the appeal period starts to run from the date of the judgment itself. 2.3.6. Third-country reinsurers are also required to set up a branch. In fact, it has “perhaps the most generous healthcare system in Europe”. 4.10 Can the courts compel the parties to mediate disputes, or engage with other forms of Alternative Dispute Resolution? Please update to the latest version, or switch to another browser for an optimal experience. Legal commentaries are, however, uncertain as to the adequacy of the reasoning required. According to Article 3(4), IDD, EIOPA is required to "establish, publishon its website and keep up-to-date a single electronic register containing records of insurance, reinsurance and ancillary insurance intermediaries which have been notified their intention to carry on cross-border business." The code of conduct was approved by a Royal Decree of 18 June 2019. 4.5 Are there any restrictions on calling expert witnesses? The final hearing is then set at a later date. Steptoe & Johnson LLP, Hebun Baybasin When the parties have waived application of the arbitration clause. The 2014 Law regulates disclosure and the consequences of intentional and unintentional non-disclosure (omissions) and misstatements. The parties may resort to arbitration once a dispute has arisen – arbitration clauses are forbidden, not a subsequent agreement to arbitrate. In 2017, the NBB released a guidance memorandum for applicants seeking authorisation as insurers. This guide has been prepared by DLA Piper's insurance regulation team to provide a high level overview of post-Brexit regimes that are being implemented in key EU markets, and in the UK. The appointment of an expert, as well as other procedural steps, such as additional rounds of pleadings, may substantially delay the proceedings. However, a court may always decide, even after the final hearing, to re-open the debates. The licence can only be obtained if certain criteria regarding solvency margins and organisation are met. If this time period is not complied with, the insurer is entitled to reduce the coverage by the amount of damages suffered by the insurer as a result of the late notification, unless the insured has notified the loss as soon as was reasonably possible. Before the case has commenced, interim measures, e.g. The supervisory review process. Steptoe & Johnson LLP, The International Comparative Legal Guides and the International Business Reports are published by: Global Legal Group, Thank you so very much for this very useful guide!Grete Hogstad, Vice President Marketing and Sales - PHOTOCURE ASA, Oslo, Norway, © 2002-2021 Copyright: ICLG.com | Our Privacy, Register with us FREE 2020 insurance regulatory trends: Modernize and rationalize. Information about the structure and role of the Office as regulator of those providing insurance services; news; copies of communications, annual reports. 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