Is accident insurance mandatory?

Accident insurance is an important part of employee safety, but its obligation depends on many factors, such as the employer’s industry and the nature of the employee’s employment. In this article, we discuss the obligation of accident insurance in Finland and related regulations.

What is accident insurance?

Accident insurance is insurance that covers accidents and occupational diseases of an employee at work or on the way to work. It offers compensation for, for example, medical expenses, loss of earnings and rehabilitation. Accident insurance is part of a wider social security system that aims to secure the well-being and livelihood of employees.

Compulsory accident insurance

In Finland, accident insurance is generally mandatory for all employers who employ employees. This obligation is based on the Occupational Accidents and Diseases Act (TyTAL), which entered into force in 2016. According to the law, an employer must take out accident insurance for all its employees if the employees are paid more than a certain limit in a year.

Exceptions and special situations

Although accident insurance is generally mandatory, there are some exceptions and special situations where taking out insurance is not necessary. These include, for example:

• Private entrepreneurs: Private entrepreneurs are not obliged to take out accident insurance for themselves, but they can take out voluntary insurance if they wish.
• Family members: If only family members of the entrepreneur work in the company, insurance is not mandatory.
• Short-term employment relationships: If the employee’s employment relationship is very short-term and the salary falls below the limit defined by law, insurance is not mandatory.

Acquisition and supervision of insurance

The employer must ensure that the accident insurance is valid as soon as the employment relationship begins. You can take out the insurance from any insurance company that offers accident insurance. Compliance with the Work Accidents and Occupational Diseases Act is monitored by the Occupational Health Institute and insurance companies.

Consequences of neglect

If the employer neglects to take out accident insurance, he may have to pay increased insurance premiums and possible fines. In addition, the employer may have to be responsible for the damages and expenses incurred by the employee.

Summary

Accident insurance is generally mandatory in Finland for all employers who employ employees. The insurance provides important security for employees in case of accidents at work and on business trips. However, there are some exceptions, such as self-employed persons and family members, for whom insurance is not mandatory. The employer must ensure that the insurance is taken out and that it is valid so that the safety of the employees is guaranteed.

Read more about accident insurance and related regulations Finlex’s website.