Insurance is an important safety net when something goes wrong, but dealing with insurance companies can be complicated. Knowing your rights helps you get the compensation you are entitled to. Here are the basics in Iceland.
What insurance covers
Insurance compensates losses according to the terms of the policy. There are many types: liability, property, accident, travel and others. What is covered depends on the policy terms, so read them and keep a copy.
In Iceland, motor insurance is compulsory, and many homeowners' and household policies combine several types of cover.
Reporting a loss
When a loss occurs, report it to the insurer promptly. Write down what happened and collect documents and photos. Good evidence strengthens your claim.
Under the Insurance Contracts Act you can lose your right to compensation if you do not notify the insurer within one year of learning about the claim, so do not wait.
Disputes about compensation
Disagreements about whether the insurer is liable, or about the amount of compensation, are common. Insurers assess claims on their own terms, which may be lower than what you consider fair.
You do not have to accept the first offer if you believe it is too low.
Having the decision reviewed
If you disagree with the insurer's decision, you can take the dispute to the Insurance Complaints Committee (Úrskurðarnefnd í vátryggingamálum), which handles cases for a small fee. You can also take the case to court.
When a lawyer helps
When the loss is significant or there is a dispute about compensation, a lawyer can check whether the offer is fair, calculate your loss and pursue your claim. For personal injuries, the liable insurer often pays part of the lawyer's fees.
These cases are linked to personal injury and compensation law. Read also what to do after an accident in Iceland.
Find a lawyer
Find a lawyer under personal injury and compensation law or browse lawyers in your region.