Denmark - Terrorism Insurance (Projected)

06 May 2019

 
Denmark - Terrorism Insurance (Projected)

A draft law (Bill N° 159, Proposal for a Law on a Terror Insurance Scheme for Non-Life Insurance), published in February 2019, proposes a new system for compensating damage arising from terror attacks using nuclear, biological, chemical or radioactive (NBCR) weapons and would replace the current pooling arrangement.

Under the new scheme, any compensation payments will be paid through the Terror Insurance Council and financed by government lending of up to DKK 15bn (USD 2.45bn). The government would then seek to be reimbursed by a charge levied on all policyholders with fire insurance for buildings, land and movable property, railway vehicles, motor vehicles, and ships. The contribution payable would be 5% of the policy premium and charged from the calendar year following any pay-out until the government has been repaid.

The new law is proposed to come into effect from 1 July 2019.