Insurance in Andorra

Andorran insurance includes formal public and private systems. CASS, Andorra’s social-security system, covers employees from the start of employment, including the probation period, and self-employed workers from the start of their activity until all activities end. Its General Branch covers healthcare costs, temporary incapacity, maternity and paternity, pregnancy risk, disability, death capital and orphan pensions. Its Retirement Branch covers old-age and widow’s pensions. Indirectly insured people access cover under the applicable CASS rules. Employees contribute 6.5% of their pay to CASS: 3% for the General Branch and 3.5% for the Retirement Branch. Employers contribute 15.5%, divided into 7% and 8.5%, making a combined contribution of 22%. Employers normally register workers, withhold the employee share and pay the monthly contribution, at least within 15 calendar days after the end of the month. An employer’s failure to pay does not remove the employee’s entitlement to CASS cover. CASS healthcare reimbursement depends on the service and provider. A contracted provider generally receives 75% of the tariff for illness or a non-work accident, 90% for hospitalisation or inpatient treatment and 100% for a work accident or occupational disease. A non-contracted provider is generally reimbursed at 33%. Some groups may receive 100% cover under special rules. At the 30% to 75% rates, the patient usually pays first and claims reimbursement; at 90%, a 10% share remains; at 100%, the third-party payer system can settle the covered amount directly. CASS incapacity benefits normally begin on the fourth day of illness or a non-work accident and on the first day of a work accident. The initial period can last up to 12 months, with extensions of up to six months at a time until the end of the third year. The medical certificate must reach CASS and the employer within 48 hours. For a work accident, the employer submits the declaration online with a certificate or in person, and CASS forms and medical evidence support recognition of the case. Recognition can provide a carnet de tercer pagador and 100% tariff cover. False declarations or failure to report can lead to sanctions. Private insurance is available through Andorran insurers and foreign insurers operating through authorised delegations. The AFA, the Andorran Financial Authority, keeps the relevant registers and supervises authorisation, solvency and market conduct. Insurance intermediation is restricted to registered mediators: an agent is tied to an insurer, while a corredor acts independently. Common products include accident, sickness, life, dependency, income-related, property, fire, natural-peril, vehicle, general liability, credit, surety, legal-protection and assistance insurance. Household contents, buildings, fire, natural hazards, other property damage, business risks and transport risks can be insured privately. The researched legal position does not establish a general national obligation to insure residential buildings or household property, although a mortgage or another contract can require cover. Private accident, health, assistance, life, dependency and income policies can supplement CASS, but they do not replace the public benefits automatically; the policy wording controls the private insurer’s obligation. Every vehicle registered in Andorra must carry motor liability insurance covering at least third-party and occupant damage up to 50,000,000 EUR per claim, with a minimum policy term of one year. Foreign vehicles entering or operating in Andorra need equivalent cover. A vehicle without the required insurance can be immobilised. The Fons Andorrà de Garantia d’Automòbils and the Oficina Andorrana d’Entitats d’Assegurança d’Automòbil support the relevant motor-insurance guarantee arrangements. Other activity-specific duties also exist, including civil-liability insurance for unmanned aircraft over 250 grams and accident, liability, rescue, transport or assistance cover for active tourism and ecotourism businesses where the applicable rules require it. Before signing a pòlissa, check the insurer and mediator in the AFA register. Record the insured risk, territorial scope, exclusions, deductibles, insured sums, duration, prima, taxes, additional charges and renewal or cancellation clauses. The premium depends on the risk, so Andorra has no single standard price for every policy. An unauthorised provider creates a serious enforcement and solvency risk. After a sinistre, notify the insurer without delay, preserve invoices, photographs, police reports and medical records, and take reasonable steps to limit further damage. The policy and any special law determine the applicable notification period; a general seven-day period should not be treated as current law. For a CASS claim, use the CASS portal or the required form and provide medical evidence; an employer report is also needed for a work accident. If a CASS decision differs from the claim, the applicable social-security administrative appeal process can lead to the administrative courts. For a private complaint, first contact the insurer’s Servicio d’Atenció al Client. If one month passes without an answer, a signed complaint with supporting documents can be sent to the AFA. An AFA report does not bind the parties on the amount owed under the policy, and a contractual dispute may ultimately require proceedings before the Batllia or another competent court. Llei 12/2017 provides the existing framework for market access, supervision, solvency, recovery and liquidation. Llei 29/2025 was published on 14 January 2026 but enters into force on 14 January 2027, so its new rules are not current contract law on 4 September 2026. From its effective date, the reform is scheduled to introduce requirements concerning pre-contract information, clear exclusions, Catalan documentation, seven-day claim reporting, payment within 60 days in undisputed cases, 30-day cancellation effects, 30-day policyholder cancellation at renewal and 60-day notice for insurer cancellation or premium increases. Existing contracts must generally be adapted within two years after the reform takes effect unless they are materially changed earlier.