Insurance in Liechtenstein

Liechtenstein’s insurance system has three main parts: statutory social insurance, occupational pension provision and private insurance. Statutory schemes apply because of residence, employment or another legal status. Private insurance arises from a contract and covers only the risks, people, property, territories and amounts stated in the policy. The AHV is the old-age and survivors’ insurance, and the IV is the disability insurance. AHV and IV generally cover people who live or work in Liechtenstein. Employees become liable for contributions from 1 January of the year in which they turn 18. In 2026, employee contributions are 4.025% for AHV and 0.675% for IV; the employer pays 4.225% for AHV and 0.675% for IV. The Family Compensation Fund, or FAK, is a separate statutory system for family benefits, not a private insurance contract. In 2026, FAK contributions are 0.2% for employees and 1.9% for employers. A full AHV pension generally requires uninterrupted contributions from age 20 until retirement age. A contribution gap usually reduces the pension by about 2.3% for each missing year. The exact pension depends on the individual record and applicable rules. The AHV-IV-FAK institutions handle contributions and benefits, while the Financial Market Authority Liechtenstein, known as FMA, supervises insurance companies and other financial-market participants rather than deciding individual pension claims. The Health Insurance Act, KVG, provides compulsory health insurance for people who live or work in Liechtenstein. It has two branches: compulsory health-care insurance and compulsory daily sickness allowance insurance. Coverage begins at birth, when residence starts or when employment begins. Registration with a state-recognized health insurer normally has to take place within three months, and people can choose among recognized insurers. In 2026, these include CONCORDIA, SWICA and FKB. The Office of Public Health can assign an insurer when registration is missed. Adults generally pay a head premium, children are premium-free and young people pay no more than half the adult premium. Employers and employees normally share the daily sickness allowance premium equally. For 2026, the employer KVG contribution is CHF 180.50 for an adult and CHF 90.25 for a young person, adjusted proportionally for part-time work. A premium reduction may be available subject to the income limit; the application deadline is at least 31 October. Medical treatment details belong to the health topic; here, the relevant issue is the insurance obligation, premium and benefit function. Employers must insure employees against occupational accidents and occupational diseases. The cover also includes home workers, apprentices, interns, volunteers and people working in sheltered or disability facilities. Non-occupational accident insurance applies when the employee works at least eight hours per week. With fewer than eight weekly hours, only occupational accidents are covered, and the journey to and from work counts as an occupational accident. A self-employed person resident in Liechtenstein may be able to obtain voluntary accident cover. Employer accident insurance starts on the first working day and normally ends on the 31st day after the end of the employment period if at least 50% of the salary is still payable. A special extension agreement for non-occupational accidents can continue cover for a maximum of six months. Accident insurance can pay treatment costs and a daily allowance. For complete incapacity, the daily allowance is generally 80% of the insured earnings from the second day. The insured annual earnings limit is CHF 148,200. An accident disability pension can begin from an assessed disability level of 10%. Treatment abroad is generally reimbursed only up to twice the cost of comparable treatment in Liechtenstein or at the nearest suitable facility, subject to the applicable rules. The Unemployment Insurance, or ALV, is financed jointly by employees and employers. It covers unemployment, short-time work, bad-weather unemployment and employer insolvency. An unemployment allowance generally requires residence in Liechtenstein, employment, unemployment, the required contribution period or an applicable exemption, ability to work and compliance with control duties. Registration with the Office for Labour and the Unemployment Insurance, known as AMS/ALV, should take place early; the application is personal and must use the required form. The normal framework period is two years. The daily allowance is generally 70% or 80% of insured earnings, with the maximum number of payable days depending on age and contributions and commonly ranging from about 130 to 500. A waiting period of at least five days can apply. Self-caused unemployment, refusal of suitable work or failure to meet duties can lead to suspension days or exclusion from benefits. Insolvency compensation covers unpaid wage claims for a maximum of four months. The ALV can also cover certain continuation risks for health and accident insurance after employment ends, but the applicable deadlines must be observed. Liechtenstein’s occupational pension system is commonly described as the second pillar. The three-pillar structure combines AHV/IV and survivors’ insurance, compulsory occupational pension provision under the BPVG and private additional savings. The BPVG governs compulsory retirement, disability and survivors’ benefits for the relevant employees. Pension funds and pension foundations are supervised by the FMA. When employment ends or a person changes pension provider, the vested-benefit amount generally moves to a vested-benefit policy or blocked account under the BPVG. Cross-border payment and withdrawal for self-employment follow special rules and should be checked separately. A private life insurance policy can supplement retirement provision but is not the same as BPVG occupational pension cover. Private insurers in Liechtenstein operate in life, non-life and reinsurance sectors. The FMA supervises their business activity, legal compliance, solvency, technical provisions and treatment of policyholders. Local providers and insurers from the European Economic Area or Switzerland may operate through authorization or notification arrangements. Insurance agents, ancillary intermediaries and reinsurance intermediaries require the applicable FMA authorization or registration and remain subject to supervision and training duties. Checking the FMA register before signing helps establish whether the provider or intermediary is authorized. Cross-border activity from the EEA or Switzerland requires separate verification. Some property and vehicle cover is compulsory. Buildings in Liechtenstein are obligatorily insured against fire and natural perils through the relevant system, and Liechtenstein participates in the Swiss Natural Perils Pool. Earthquake damage is not included in that cover, and no general compulsory earthquake insurance is documented. Household contents, building extensions, business property, cyber risks and additional natural-peril cover depend on the contract. Motor-vehicle third-party liability insurance is compulsory for registered vehicles. Registration requires an electronic insurance confirmation, or eVn, from an authorized insurer. The Road Traffic Act, SVG, and the Motor Vehicle Liability Insurance Ordinance govern the relevant requirements. Comprehensive cover, occupant cover and roadside assistance are optional additions. The National Insurance Bureau handles certain foreign vehicles, border insurance and guarantee-fund coordination. Taking out insurance starts with identifying the risk and the required cover. Compare the provider, insured amount, exclusions, deductible, waiting period, policy term, renewal date and cancellation deadline. Give complete and truthful information in the application, including health information for personal insurance. The insurer or distributor has information, advice and conduct duties under the Insurance Distribution Act, VersVertG. Payment of a premium or submission of an application does not automatically create protection before the policy’s effective date and other contractual conditions are met. After a loss, check the policy and general terms for the reporting deadline, evidence requirements and duties. Limit further damage, preserve invoices, photographs and medical or police reports, and avoid admitting liability without coordinating with the insurer. Report the claim to the insurer or intermediary in writing. The FMA can address supervisory, authorization or market-conduct violations, but it is not a general consumer-protection office and does not decide ordinary civil disputes about payment. An FMA complaint does not suspend contractual or limitation periods. A private claim belongs before the ordinary courts, with Liechtenstein legal advice where needed; suspected criminal conduct belongs with the criminal-prosecution authorities. A move, employer change, change to cross-border status, reduction below eight working hours per week, unemployment, retirement or transition to self-employment can alter insurance duties and cover. Recheck KVG registration within the three-month choice period, accident continuation cover before its maximum six-month extension expires, unemployment and sickness-allowance consequences, and the pension transfer arrangements. For an individual life-insurance contract lasting more than six months, written withdrawal is generally possible within one month after learning that the contract was concluded; otherwise, the policy and statutory deadlines apply. Private premiums, deductibles and insured amounts are stated in CHF and vary by risk and contract, so figures from neighbouring countries cannot be transferred automatically.