Low-cost option

The monthly membership fee is only 0,05% of each member’s salary. Employers pay 1% of their employee’s salary into the FLM health fund. No other contributions are requested from employers.

Equivalent insurance coverage purchased directly from an insurance company would have a premium paid out of salary after tax.

Salary benefits (salary insurance)

The salary insurance of the FLM health fund pays compensation in case of accidents or illnesses, which amounts up to 80% of the average salary for up to nine months. These benefits are intended to replace wage payments following the member’s sick leave.

These benefits won’t be paid until three months (90 days) have passed since the event that led to the member’s inability to work.

Salary benefits are also paid for up to six months in case of injured or sick children.

FLM guarantees the rights of members who go on unemployment benefits or on maternity leave. FLM contributes 1% into the health fund in accordance with the paid membership fee from payments from the Unemployment Insurance Fund or from the Maternity Leave Fund. According to the terms & conditions of the FLM health fund, these payments contribute 80% of the member’s average monthly salary over the previous 12 months.

The maximum monthly compensation is 4.033.000 ISK.

The payment of these salary benefits is limited to a maximum of 24 months over a ten-year period for each member.

Salary insurance simplified
The following information specifies only the main aspects of the insurance. This is not an exhaustive list nor a personal overview of the insurance that members choose. The information below bears no legal significance and serves only the purpose of informing members about the main aspects of the insurance policy. For an exhaustive overview, please consult the insurance’s terms & conditions.

What is salary insurance?
An accident or illness can cause inability to work for a short period of time. In such cases the salary insurance provides a daily allowance. These payments start when the 3-month waiting period has passed and are paid for up to nine months. Income tax must be paid on these daily allowances.

What does the insurance not cover?

• Accidents that occur in any form of motor sports and martial art, mountain climbing, rock climbing, scuba diving, hang gliding, paragliding, parachuting, heli-skiing, and/or sports of similar nature.

• Accidents related to or caused by criminal activity, unless proven that the incidents are unrelated.

• Accidents or illnesses that could be attributed to the consumption of alcohol, anaesthetics, or narcotics, unless proven that the incidents are unrelated.

• Accidents or illnesses that occur because of tanning beds, medical treatments, surgery, or the use of pharmaceutical drugs, unless medically advised due to a compensable accident or illness.

• Accidents due to toxic gasses unless it happened suddenly and against the will of the insured.

• Accidents resulting from the use of motor vehicles subject to registration and which are liable for compensation according to mandatory vehicle insurance, whether it concerns liability insurance or accident insurance for the owner and driver according to traffic laws.

• Accidents and illnesses of children if the insured is entitled to maternity leave payments.

• A temporary inability to work a woman may experience during pregnancy, childbirth, or a miscarriage, unless caused by complications.

• Illnesses or accidents the insured was aware of or knew could happen before joining FLM.

Are there any restrictions or precautions?

• If damage is attributed to intent of the insured, the liability is canceled. Damage caused by gross negligence may lead to a limitation or elimination of FLM’s liability.

• Incorrect information was provided upon joining FLM may affect the right to compensation.

• The insured loses their right for compensation if they fail to file a claim within a year of the incident.

• The insured must familiarize themselves with the terms & conditions of the insurance.

Where is the insurance valid?

The insurance is valid worldwide. However, the right to compensation is canceled if the insured lives and works abroad for more than 6 months at a time.

Death Benefits (life insurance)

The amount of death benefits depends on the member’s age and salary at any given time, but has a maximum of 20.164.000 ISK, and a minimum of 1.411.000 ISK. There is no need to carry out a separate risk assessment for the health fund’s life insurance.

Information on compensation amounts can be found with the help of the FLM Calculator here on the website.

FLM guarantees the rights of members who receive unemployment benefits or maternity leave payments. FLM contributes 1% into the health fund in accordance with the paid membership fee from payments from the Unemployment Insurance Fund or from the Maternity Leave Fund.

To qualify for these benefits a minimum contribution of 12.000 ISK must have been paid to the FLM health fund in the last 12 months before the member’s passing.

Life insurance simplified

The following information specifies only the main aspects of the insurance. This is not an exhaustive list nor a personal overview of the types of insurance that members choose. The information below bears no legal significance and serves only the purpose of informing members about the main aspects of the insurance policy. For an exhaustive overview, please consult the insurance’s terms & conditions.

What is life insurance?

The passing of a loved one can come as a great shock, and life insurance can never compensate for the pain that loved ones suffer. However, it can reduce the financial loss. Life insurance is intended to support families in the event of a loss, and thus increase the quality of life and financial security for those left behind.

If you have life insurance and pass away due to an accident or illness while insured, the beneficiaries will receive the insurance benefits. These are tax-free and paid in a lump sum.

Who qualifies for the benefits?

The principle is that the spouse will receive the benefits (your partner in marriage or confirmed cohabitation, not in a registered partnership). If you do not have a spouse, your child or children will become the beneficiaries. If neither are present, the benefits are paid to heirs in accordance with the law.

Are there any restrictions or precautions?

• If the insured commits suicide within a year of the insurance taking effect, no compensation will be paid.

• Incorrect information provided upon joining FLM may affect the right to compensation.

• The insurance will be cancelled upon the passing of the insured

• The right for compensation is lost if a claim is not filed within a year from the insured’s passing.

• The insured must familiarize themselves with the terms & conditions of the insurance.

Where is the insurance valid?

The insurance is valid worldwide. More information can be found in terms & conditions.

Illness benefits (critical health insurance)

As of May 1, 2020, FLM’s members and their children (older than three months) enjoy benefits from Sickness insurance coverage.

The amount of sickness insurance depends on the member’s age and salary at any given time, but has a maximum of 12.337.000 ISK, and a minimum of 863.000 ISK. Benefits for each member’s child make up 50% of their insurance amount. There is no need to carry out a separate risk assessment for the health fund’s critical health insurance.

Information on compensation amounts can be found with the help of the FLM Calculator here on the website.

FLM guarantees the rights of members who receive unemployment benefits or maternity leave payments. FLM contributes 1% into the health fund in accordance with the paid membership fee from payments from the Unemployment Insurance Fund or from the Maternity Leave Fund. This is done according to the terms & conditions of the FLM health fund.

Critical health insurance simplified

The following information specifies only the main aspects of the insurance. This is not an exhaustive list nor a personal overview of the insurances that members choose. The information below bears no legal significance and serves only the purpose of informing members about the main aspects of the insurance policy. For an exhaustive overview, please consult the insurance’s terms & conditions.

What is critical health insurance?

The critical health insurance is intended to support families in case of serious illness and increase the quality of life and financial security.

Compensation is paid if the insured is diagnosed with one of the diseases covered by the insurance, regardless of whether the disease leads to disability or the incapability to work. The benefits are tax-free and paid in a lump sum so they could be used to cover unexpected expenses and loss of wages due to serious illness. The diseases the insurance covers are split into four compensation categories. Upon the payment of benefits, the insurance coverage for the category to which the disease belongs, is cancelled. The insurance remains valid for the remaining three categories.

The insured’s children (older than three months) are covered for the same diseases as specified in terms & conditions. The insurance amount is 50% of their parents’ amount. A disease must be confirmed with a medical certificate issued by a specialist doctor. These benefits are only paid once for each child.

There are four compensation categories. Consult the terms & conditions for more information.

• Cancer
• Cardiovascular and kidney diseases
• Neurological and degenerative diseases
• Other insurance incidents

Are there any restrictions or precautions?

• Compensation is not paid in the event of a passing. The insured must live for at least 30 days after the diagnosis of an illness or insured event occurs.
• Incorrect information provided upon joining FLM may affect the right to compensation.
• The insured loses their right for compensation if they fail to file a claim within a year of the incident.
• The insured must familiarize themselves with the terms & conditions of the insurance.

Where is the insurance valid?

The insurance is valid worldwide. More information can be found in terms & conditions.

Disability benefits (Illness insurance)

As of May 1, 2020, FLM’s members benefit from illness insurance.

If an illness causes permanent disability to the insured, compensation will be paid based on the current insurance amount. These benefits are paid in proportion to the assessed disability, but no benefits are paid if the assessment is lower than 25%.

The amount of Disability Benefits depends on the member’s age and salary at any given time, but has a maximum of 12.985.000 ISK, and a minimum of 1.039.000 ISK. There is no need to carry out a separate risk assessment for the health fund’s sickness insurance.

It should be pointed out that if a member has received benefits from FLM’s Critical Illness Insurance for the same illness, or is entitled to these, the benefits from the Sickness Insurance shall be reduced by half of the benefits received from the Critical Illness Insurance.

Information on compensation amounts can be found with the help of the FLM Calculator here on the website.

FLM guarantees the rights of members who receive unemployment benefits or maternity leave payments. FLM contributes 1% into the health fund in accordance with the paid membership fee from payments from the Unemployment Insurance Fund or from the Maternity Leave Fund. This is done according to the terms & conditions of the FLM health fund.

Illness insurance simplified

The following information specifies only the main aspects of the insurance. This is not an exhaustive list nor a personal overview of the insurances that members choose. The information below bears no legal significance and serves only the purpose of informing members about the main aspects of the insurance policy. For an exhaustive overview, please consult the insurance’s terms & conditions.

What is illness insurance?

Illness insurance pays benefits when the insured becomes permanently medically disabled because of illness. The minimum disability assessment is 25%.

If a member has received benefits from FLM’s illness insurance for the same illness, or is entitled to these, the benefits from the illness insurance shall be reduced by half of the benefits received from the illness insurance.

Compensation is not paid if symptoms of the illness showed within the first three months after membership took effect.

The insurance covers members from 18 to 59 years of age.

Medical disability

Permanent disability is determined based on the physical consequences of the illness, regardless of education, specialization, and how it affects the ability to perform any job.

The compensation amount is determined by a disability assessment; if assessed with 50% medical disability, 50% of the insurance amount will be paid. These are tax-free and paid in a lump sum.

Where is the insurance valid?

The insurance is valid worldwide. More information can be found in terms & conditions.

Continued coverage

As of May 1, 2020, a member has the right to continue life- and health insurance if their membership is terminated for non-age-related reasons. To activate continued life- and health insurance, an e-mail must be sent to Sjóva at sjovalif@sjova.is within three months of the termination date.

Age Limit

As of May 1, 2020, the age limit for members of the insurance fund is as follows:

Salary insurance

The salary insurance expires at the end of the year in which the member turns 66. The minimum age for joining is 18, and the maximum age is 64.

Life insurance

The life insurance expires at the end of the year in which the member turns 66. The minimum age for joining is 18, and the maximum age is 64.

Health Insurance

The health insurance expires on the day the member turns 60. The minimum age for joining is 18. Health insurance for the members’ children only applies if they are between three months and 18 years old.

Examples of compensation amounts

Information on compensation amounts can be found with the help of the FLM Calculator here on the website.

Salary benefits, death benefits, sickness benefits and medical disability benefits are paid in accordance with Sjóva’s terms & conditions for salary insurance, group life insurance, group illness insurance, and group medical disability insurance.

The FLM medical fund’s compensation is based on a group insurance contract with Sjóvá-Almennar tryggingar hf., who is the insurer and therefore handles any damage settlement.

If a member has health- and accident insurance, life insurance or disease insurance ongoing elsewhere, it will not affect the payments of wage benefits, death benefits, disability benefits, or sickness benefits from the FLM health fund.

Insurance terms - payments from the fund - insurer

Sjóvá (Sjóvá-Almennar tryggingar hf.) is the insurer of FLM’s medical fund based on the current insurance agreement between both parties. Sjóvá is therefore liable for all compensation risks of the FLM health fund when it comes to wage benefits, death benefits, illness benefits and medical disability benefits.

All claims are handled by Sjóvá, including damage claims, determination of liability, and payment of damage compensation. These are based on Sjóvá’s insurance terms & conditions.

Sjóvá’s general terms and conditions for salary insurance, group life insurance, group sickness insurance and group sickness insurance FLM

Insurance terms Sjóvá for FLM salary insurance

Insurance terms Sjóvá insurance for FLM group life insurance

Insurance terms Sjóvá insurance for group disease insurance FLM

Insurance terms Sjóvá for group health insurance FLM

More information can be found at www.sjova.is, or with Sjóvá’s Director of Personal Injury for information on compensation claims.

Application for compensation

All claims are handled by Sjóvá, including damage claims, determination of liability, and payment of damage compensation. These are based on Sjóvá’s insurance terms & conditions.

FLM’s health fund consists of salary insurance, life insurance, illness insurance and health insurance.

The salary insurance of the FLM health fund compensates in case of accidents or illnesses, which amounts up to 80% of the average annual salary for up to nine months.

These benefits are not paid until three months (90 days) have passed since the event that led to the member’s inability to work.

You must fill out a damage report, which can be found here, and send it to the email address personutjon@sjova.is. Sjóvá will handle the matter and will be in direct contact with you after receiving the report submission.

General conditions for receiving benefits from FLM

• That the application has been signed and delivered to the company.
• That the member concerned has been healthy and able to work continuously for the last three months before the request is signed.
• That the member’s illness, passing, or incapability to work is not associated with incidents, accidents or medical conditions or their consequences the member was or could have been aware of before the request was signed.
• That a compensation claim has been filed within a year from when the person entitled to compensation received information about the incident on which the compensation claim is based.
• A special condition for receiving death benefits from the FLM medical fund is that a minimum of 12.000 ISK has been contributed to the health fund over the previous 12 months before the member’s passing.
• If more than 90 days pass between premium payments of a member, his membership, and rights to claim benefits will be cancelled.
• The right to salary insurance benefits expires at the end of the year in which the member turns 66.
• The right to life insurance benefits expires at the end of the year in which the member turns 66.
• The right to health insurance benefits expires when the member turns 60.
  

Regulation of the FLM medical fund

1. Name and location of the fund

The fund is called Sjúkrasjóður Félags lykilmanna and is in Reykjavík. Members of the fund are those who agree to pay the premium payments.

2. The fund’s goal

The fund aims to provide compensation to members in the event of illness, accident, and death.

3. Income

The fund’s income is based on contractual premium payments and capital income.

4. Management and operation

The fund’s board is responsible for financial allocations and other finance related matters related to the fund. The management operates in accordance with general administrative legislation. The board of directors is responsible for establishing detailed operating rules for the payment of benefits and other working arrangements. The board and its employees operate under strict confidentiality. The fund’s own accounts are separate but submitted with the accounts of the fund.

5. Right to compensation

Only paying members are entitled to receive compensation in accordance with the fund’s detailed terms & conditions per benefit category.

The health insurance fund ensures the rights of members who receive unemployment benefits or maternity leave payments. FLM contributes a 1,0% health fund fee in accordance with the paid membership fee from the Unemployment Insurance Fund or from the Maternity Leave Fund.

If a member is entitled to illness and accident benefits, has changed jobs within the last 12 months, and has been a paying member for five years continuously, the waiting time for illness

6. Compensation

The fund’s benefit categories are:

A) Illness and accident benefits

The health fund is authorized to allocate sickness and accident benefits if a member’s income is reduced due to illness or accidents, if no daily allowance or other payment related to the inability to work is received. This is in accordance with the statutory vehicle or aircraft insurance for the same period with another party. Illness and accident benefits contribute 80% of the member’s average annual salary and can be paid for up to nine months. The waiting period is three months with the day the incident or illness took place as the starting day.

Benefits regarding children amount up to 80% of the average annual salary and can be paid up to six months.

B) Death benefits
FLM pays death benefits upon a member’s passing, in accordance with the related terms and conditions. The benefit amount depends on the member’s age and average annual salary.

C) Illness benefits
FLM pays sickness benefits to members in accordance with related terms and conditions. The benefit amount depends on the member’s age and average annual salary.

The fund’s board is authorized to negotiate with insurance companies about insurance of members and compensation terms, in whole or in part. The board is also authorized to establish other compensation categories in the shape of accident insurance, health insurance and unemployment insurance, according to the decisions made during the annual general meeting.

7. Termination of payment obligation

In the event of an epidemic, the fund’s board can temporarily terminate the fund’s payment obligations. The fund’s board can also decide to temporarily reduce the amount of benefits, if the fund’s performance seems to be at risk.

8. Expiration

The right to claim benefits, in accordance with the applicable regulation, will be forfeited if said claim is not submitted to the fund within 12 months of the right being established.

9. Reimbursement of membership

Payments and fees to the fund are non-refundable.

10. Application for compensation

Applications must be submitted in the form determined by the fund’s board and accompanied by the necessary medical certificates to ensure the validity of payments. Members are obliged to attend an interview with a consultant if requested, and to respond to suggestions regarding rehabilitation and/or examination by a confidential doctor to verify the validity of the submitted medical certificates. If no adequate information is received from the applicant, the fund’s board shall reject the application or postpone further payments. If a member is found to have given false or misleading information, they forfeit their right to compensation and may be requested to reimburse the received benefits (including late payment interest).

11. Disclosure obligation

The fund’s board must inform members of their rights according to the fund’s regulations upon joining, via electronic communication and notifications if payments to the fund halt.

12. Regulation adjustments

Alterations to the regulation, if any, will only be made at the annual FLM meeting and amendment proposals must be presented the same way as legislative amendments.

Information

Here you can find useful information for those who work with premium returns, e.g. premium percentages, membership fees, payment of returns, due dates, and billing processes.

Membership- and health fund fee

Both the membership fee and the contribution to the health fund are calculated from the same salary as the pension fund payments. The membership fee is 0,05% of the member’s received salary. Employers contribute only 1,0% of the salary paid to the member concerned.

Workers’ accident insurance

Members are insured in accordance with the FLM Wage Agreement, or the one referred to in their employment contract.

Returns

There are two ways to submit contributions to FLM:

A) Electronic payments directly from the payroll system

Here on our payer’s website, access is requested for XML communication from the payer’s salary system to our web service after which a web key is displayed in the payer’s online bank. It is necessary to apply for a web key on the employer’s Icelandic identification number (kennitala). The electronic ID also gives access to FLM’s payroll website. Electronic IDs save time and increase security.

B) Manually through FLM’s payroll website

If you are unable to proceed directly through the payment system, it can be done by entering the request in the payroll website. FLM handles digital information the same way online banks do, which makes this a safe and secure option.

In both cases, a claim will automatically appear in the payer’s online bank.

Please note that submitting a contribution request is not enough. The process is complete only when the contribution request and payment have been received by FLM.

General information

Membership fee – employee contribution: 0,05% of total salary.
Health fund fee – employer’s contribution: 1,0% of total salary.
Identification number (Kennitala): 530412-0750
Bank account: 0114-26-140011
Membership number FLM: 560
Due date: 10th day of each following month.
End day: The last work day of the month.

Due date and last date of premiums

The due date is the 10th of each following month, e.g. premiums for wages in March are due on April 10.
The end date is the last working day of the following month, e.g. premiums for wages in March are due on the last working day in April.

Interest is calculated from the last date.

The collection process if payments to FLM halt is as follows:

1. A reminder is sent 30 days after the due date.
2. The first collection letter is sent 45 days after the due date, with a grace period of 14 days.
3. A second collection letter is sent 60 days after the due date, with a 14 day. grace period. This has a cost of 1.500 ISK.
4. A final collection warning is sent 75 days after the due date, with a grace period of 14 days. This final warning has a cost of 3.000 ISK.
5. If the payment is not received within 90 days after the due date, the collection claim will be sent to a lawyer.