Accident Insurance Fee

Liability to Insure

The employer is liable to take a statutory accident insurance for all his/her employees. According to law, an accident insurance must be taken for all employees except the employer himself/herself. Accident insurance covers occupational accidents, commuting accidents, and occupational diseases.  

Private entrepreneurs and family members who are not in an employment relationship as defined by the Employment Contracts Act, general partners in a general partnership, and general partners in a limited partnership are excluded from mandatory insurance. Also excluded are shareholders in a limited liability company who hold a managerial position and own more than 30% of the company alone or more than 50% together with family members, either in shares or voting rights.

Employers are required to take out accident and occupational disease insurance when the salaries paid or agreed to be paid to employees exceed a certain euro threshold during a calendar year, which is confirmed annually. The obligation to insure is not affected by the employee’s age, all employees in an employment relationship are covered.

Statutory accident insurance also applies to employees working abroad under certain conditions. In some cases, it is necessary to obtain a certificate for posted workers (A1 certificate). The best sources of information on insuring employees working abroad are accident insurance companies and, more generally, the Finnish Centre for Pensions (ETK) regarding social security while working abroad.

The Amount of the Fee, Paying and the Payment Notification

The amount of the accident insurance depends on the dangerous nature of the work and the size of the company. Insurance companies primarily receive employee salary information directly from the Incomes Register. A separate payroll report form is sent to the employer to complete only if necessary.

Insurance Compensation

From the accident insurance are compensated damages caused to the employee in work or en route between home and work. Accident insurance covers in practice work-related accidents and occupational diseases. The insurance covers necessary medical costs of work-related accidents or occupational diseases as well as the loss of earnings by way of a daily allowance or employment accident pension. For permanent general disability an employee may also receive a disability indemnity on the basis of the accident insurance. In addition, the insurance covers costs for rehabilitation and, in the case of death, a funeral allowance and the possibility to receive a dependent's pension.