In the event of any inconsistency between the Danish and English language versions of the document, the Danish version prevails

 

Circular of 9 December 2005 on self-insurance in the Danish state etc.

Issued by the Danish Ministry of Finance

Scope

1.-(1) The Danish state is self-insuring, which entails that any institutions covered by this Circular shall not take out insurance without permission in accordance with Section 9, cf., however, Sections 4-8.

2.-(1) The Circular covers:

i) the Danish state,

ii) state institutions, the income and expenses of which are laid down in the Danish Appropriations Act (Finansloven), and

iii) institutions, the operating losses of which are fully covered by the Treasury.

(2) It may be stipulated pursuant to legislation or bills, including in connection with subsidies granted, that other institutions shall comply with the rules set out in this Circular.

3.-(1) Any buildings etc. owned by institutions comprised by this Circular and which are owned jointly with other parties are covered by the principle of self-insurance as concerns the share owned by the relevant institution.

Right to take out insurance

4.-(1) Insurance shall be taken out where this is required pursuant to legislation.

(2) Insurance shall be taken out to cover risks abroad if required in the relevant country.

5.-(1) Insurance can be taken out to cover product liability and professional liability in connection with income-generating activities and the appropriation type ‘state activity’.

6.-(1) Third-party liability insurance and comprehensive motor insurance can be taken out for ministers’ cars, cf. the Ministry of Finance’s Circular on official state cars.

(2) Third-party liability insurance can be taken out for official cars in connection with driving abroad, cf. the Ministry of Finance’s Circular on official state cars.

7.-(1) In connection with system exports, on the same terms and conditions as those applying to private companies, insurance can be taken out with Eksport Kredit Fonden (EKF) against the risks related to payments for their exports, cf. the Circular on national agencies’ participation in export transactions.

8.-(1) By statute or pursuant to legislation, including the Danish Appropriations Act, bill or separate circular, permission may be granted to take out insurance in other areas.

9.-(1) Following an application from the relevant department, the Ministry of Finance may also grant permission for taking out insurance in specific cases where this is deemed to be financially advantageous for the Danish state.

Redress, payment of compensation and recourse

10.-(1) The relevant institution shall be responsible for redressing claims etc.

11.-(1) The fact that no insurance has been taken out shall generally have no bearing on the institutions’ liability to pay damages or on the institutions’ claim for compensation from other parties. The liability to pay damages and the size of a possible compensation are determined in accordance with the general rules of Danish law and the rules set out therein on the Danish state as self-insurer.

12.-(1) A specified, possibly impartial, assessment should be made of the scope of the claim in cases where claims can be made against an insurance company or a person responsible for the damage.

Appropriation-related processing of self-insurance claims

13.-(1) The rules on the appropriation-related processing of self-insurance claims are set out in the budget guidelines.

Purchase, sale and lease of real property and contents

14.-(1) If properties comprised by this Circular are sold to private buyers, information shall be provided to the effect that no insurance has been taken out.

15.-(1) If buildings, contents etc. comprised by this Circular are leased, the rent or lease payment shall include an amount corresponding to the ordinary insurance premium.

16.-(1) If an institution comprised by this Circular takes over a private property, any existing insurance policies shall be terminated, cf., however, Section 9.

(2) If the full right of use of a property is taken over and the risk in relation to the lease is borne by an institution comprised by this Circular, any existing insurance policies shall also be terminated, cf., however, Section 9.

(3) In connection with the termination of insurance policies, the consent of any private mortgagees shall be obtained where such consent is required.

Official trips abroad

17.-(1) During official trips etc. abroad, to the Faroe Islands and to Greenland, state employees etc. are covered by the Ministry of Finance’s circular on official journey insurance. The expenses incurred in connection with any claims shall be paid by the relevant institutions.

Commencement etc.

18.-(1) The Circular shall come into force on 1 January 2006.

(2) At the same time, the Circular of 22 March 2004 on self-insurance in the Danish state is repealed.

Ministry of Finance, 9 December 2005

Thor Pedersen

/Mogens Pedersen