Additional costs for consequential damage and loss prevention.
The additional costs incurred directly as a result of a loss event. These may include: Emergency doors, locks, windows and other security measures, temporary shelter solutions, debris removal and disposal.
Thanks to this extended vehicle coverage, which should always be included in the protection plan, the malus is not applied to one claim per observation period. Additional bonus protection may be applied by some providers if the policyholder agrees to use their approved partner for repairs or other incentive plans.
Deductible or "copay
The deductible or "copay" is the amount the policyholder pays out of pocket before the insurance company begins reimbursing the claim. The deductible can be applied per claim or per calendar year, depending on the type of insurance. The lower the deductible, the higher the insurance premium, since a low deductible costs the insurance company more in the event of a claim.
The duty to observe the basic principles of safety or care that could be expected of any reasonable person in the same situation and circumstances.
Average costs of Swiss medical care (without guarantee!)
- General practitioner: CHF 150 to 300 per visit.
- Emergency: CHF 200 to 350 per visit.
- Specialist: CHF 250.- to 400.- per visit
- Gynecologist: CHF 200.- to 400.- per visit.
- Inpatient (hospitalization): CHF 2500.- to 5000.- per night
- Average medical costs per year for a man in good health in Switzerland: CHF 750.-
- Average medical costs per year for a woman in good health in Switzerland: CHF 950.-
Insurance of high-value goods
In the standard personal property insurance package, your personal property in your home is only protected in the event of damage caused by fire, water or a natural event and burglary. A valuable piece of jewelry or a watch is worn all over the world and can be lost, stolen or broken anywhere. Personal property insurance does not protect it. High value items insurance is a worldwide protection that covers loss, damage and theft, also known as all-risk insurance.
If you renovate your home or upgrade your property during construction by changing the flooring (marble, improved parquet...), improving the kitchen or bathrooms, or adding skylights, etc., the value of your property as stated in the original purchase contract will increase. The cost of these home improvements must be added to the sum insured in your insurance policy to be considered in the event of a claim.
LAA / UVG
LAA is the acronym of the French term Loi sur l'Assurance Accident (Accident Insurance Act, UVG). All employees who work more than 8 hours per week for the same employer benefit from full accident insurance, partially financed by their employer. No deductible or contribution applies to LAA accident medical care.
LAMal / KVG
LAMal is the acronym of the French term Loi sur l'Assurance Maladie (Health Insurance Law, KVG). It is the law that governs Switzerland's mandatory universal health insurance.
LAMal / KVG deductible
In addition to the LAMal/KVG deductible, all patients must pay 10% of their medical expenses up to a maximum of CHF 700 for adults and CHF 350* for children.
LCA is the acronym of the French term Loi sur le Contrat d'Assurance (Insurance Contract Law, VVG). It is the law that regulates Swiss supplementary health insurance.
Active legal protection
Protects, advises and defends the policyholder when he or she wishes to assert a liability claim against a third party.
Passive legal protection
Protects, advises and defends the policyholder in the event of an unfounded liability claim against him.
Site, exposure and disposal costs.
Only related to water-related incidents (water, gas or fuel oil and damage caused by frozen and burst pipes). Leaks must be located, exposed, repaired and waste disposed of.
Lump sum insurance
The amount is limited to the maximum amount stated in the insurance policy.
The malus system penalizes claims made by the policyholder for which he/she is responsible (at-fault accidents) with a premium surcharge or a premium increase of 20% for the entire year following the occurrence of the claim. If the no-claims bonus is 5% per year, it takes 5 years for the policyholder to get back to the original premium after an at-fault accident. This is called a bonus-malus system (BMS). Each liability, partial or comprehensive module is penalized separately, so to calculate the exact impact on the annual premium, the malus must be applied to the corresponding module.
Bonus for no claims
Each year that a policyholder does not make a claim, the insurance company rewards them with a discount or bonus of 5% on average. This means that their annual premium will decrease each year until they reach the maximum no-claim bonus, which is generally around 35% of the full annual premium. This is called a bonus-malus system (BMS). Each liability, partial or comprehensive module is compensated separately, so to calculate the exact impact on the annual premium, the bonus must be applied to the corresponding module.
The 12-month period chosen by the insurance company to evaluate the amount of the no-claims bonus as of January 1 of each year in accordance with the Bonus-Malus System (BMS). Since the premium must be calculated for a calendar year, the observation period almost never goes from January to December, so each company is free to choose the 12-month period it prefers.
Parking damage is damage caused to a stationary parked car by an unknown third party. If the third party is known, it is their liability insurance that will compensate for the damage.
Inventory of personal belongings
The personal property inventory should reflect the amount required to replace all personal property, including clothing, furniture, valuables, recreational items, electronics... in the event of loss or destruction due to one of the four covered events. This amount is determined by the policyholder and reviewed by the insurance company only in the event of a loss.
Personal liability insurance
Personal liability insurance provides protection to the policyholder and his/her family in case of negligence towards third parties resulting in physical or psychological damage or property damage. It also provides passive legal protection that defends the policyholder in the event of an unfounded liability claim.
Social Security System (AVS), this module is guaranteed by the state. It includes pension, loss of income and death benefits. All Swiss residents must contribute to the system for 44 years between the ages of 21 and 65 (64 for women) or as soon as they receive an OASI salary. To be entitled to the full pension per month, the beneficiary must have made contributions for the entire 44 years and earned at least CHF 3,758,760 during the same period (or an average of CHF 86,040 per year). The calculation is complex. It is best to have your anticipated pension calculated by the AHV (AK40). For people over 40, a pension projection is free of charge every five years.
The occupational pension (BVG), this module is guaranteed by the employer's pension fund. It includes additional pension, loss of income and death benefits, as well as accident benefits (LAA) and optional loss of income due to illness (PGM) for 720 days. The mandatory savings plan, to which the employee must contribute for a 40-year period between the ages of 25 and 65; in this mandatory plan, the accumulated capital is equal to 12.5% (the average percentage during this period) of earnings over the 40-year period, plus compound interest.
Private pension (3a and 3b), this module can only be guaranteed by a personal savings plan, which can include loss of income and death benefits (life insurance). The 3rd pillar module is designed to guarantee a comfortable standard of living in old age. Since the 3rd pillar is an integral part of the Swiss pension system, the government offers extensive tax incentives to all private pension plans. A private pension plan with loss of income and death benefits can be purchased through an insurance company as soon as the beneficiary starts drawing an OASI salary (Pillar 3A) or if desired or required (Pillar 3B).
Private income forfeiture plan limited to residents paying into an occupational pension plan (Pillar 2) and where the end of the insurance contract must be within 5 years of the statutory retirement age. The annual investment is tax deductible and can result in tax savings of 15% to 30% of the amount paid into the scheme.
Private income forfeiture scheme with no restrictions on contract end date, professional status or age. Tax benefits for 3B insurance contracts are applied in the canton of Geneva, but not in the canton of Vaud (or in most other Swiss cantons).
Fine art is exposed to multiple risks from the moment it is purchased. They must be packed and transported to their final destination (wall to wall) when they leave the dealer's gallery. Preliminary coverage covers these risks for a period of 30 to 90 days, giving the policyholder enough time to report them to the insurance company for full protection. IMPORTANT: There must be an existing insurance policy for provisional coverage to be in effect, and the amount of coverage is limited to approximately 20% of the agreed value of that existing policy. Reputable providers will include this protection.
Federal Stamp Tax
A stamp duty payable on all Swiss insurance policies; the rate was 5% at publication.
Three-pillar pension system
The Swiss pension system is considered one of the best in the world. It is divided into three modules, administered by the state, the employer, and individuals, and is known in French as the "three-pillar pension system" or "trois piliers."
The insured vehicle is considered a total loss if the cost of repairs exceeds the current value or if the vehicle is stolen and not found within 30 days. With the current value supplement, the insured vehicle is considered a total loss for the first two years if the cost of repairs exceeds 65% of the catalog price.
Underinsurance is the act of underestimating the true value of the risk being insured.This results in a lower annual insurance premium, but also results in a corresponding loss when a claim is made ("apply average" in insurance terminology). An example illustrates that the loss resulting from a claim can far exceed the savings in insurance premium. If the policyholder underestimates the insurable value by 50%, he will be penalized with the same amount (50%) in case of a claim: Declared value: 20'000.- / actual value 40'000 (underinsured value 50%) Claim amount/damage: 10'000.-
Damage compensation: 5'000.- (-50%). Insuring the additional CHF 20'000.- would have cost between CHF 30 and 40.- per year; the loss from the claim is CHF 5'000.-.
The amount required to replace the broken item at today's price less depreciation, which includes wear and tear and obsolescence.
The sum insured under the policy in agreement with the insurance company and the policyholder.
The current value is the market value of the car on a given day, taking into account depreciation for age, mileage and condition. The base value of the car is the catalog price plus options. Typical depreciation is calculated at approximately 10% per year.
Time value add-on
With the current value add-on, the policyholder will always receive a 10% to 20% higher total loss indemnity than without it. The best companies indemnify 100% of the catalog price for the first two years of the car's life. This amount then decreases by 10% to 20% each year, so that a three-year-old car is indemnified at 80% of the catalog price, a four-year-old car at 70%, and a five-year-old car at 60%.
If a work of art needs to be repaired, its market value may decrease; this "lost value" can be insured through a reputable art insurance policy.
The amount required to replace the defective item at today's price.