Insurance in Malta

Malta's Social Security system is the statutory insurance scheme for people who qualify through contributions or other legal conditions. Gainfully occupied people generally enter the contributory system from age 16 until they reach 65. Class 1 applies to employees: the employee and employer normally each pay 10% of the basic weekly wage, with 2026 weekly maximums of €49.04 for people born by 1961 and €55.93 for people born from 1962. Employers may also pay 0.30% to the Maternity Leave Fund where applicable. Class 1 contributions are normally deducted from wages and remitted monthly by the employer. Class 2 applies mainly to self-occupied people carrying on a trade or profession; the 2026 rate is 15%, with published minimums of €31.97 or €36.18 and maximums of €73.56 or €83.89 depending on the contributor's birth year. Class 3 is a restricted option for certain self-employed people with passive income and is mainly relevant to pension entitlement. A Social Security Number connects contributions with the individual's record. Contributory benefits can include retirement, sickness, unemployment, maternity, injury, invalidity, widow or widower, orphanhood and family-related benefits. Means-tested non-contributory benefits belong to the social assistance system rather than the main contributory insurance system. EU and EEA coordination can affect insurance periods when a person has worked across countries. Private insurance in Malta includes private medical, life, accident, critical illness, travel, motor, home, buildings, contents, boat, business property, public liability, employers' liability and professional liability cover. Private medical insurance concerns contractual cover; access to public healthcare belongs to the health system. Home and property insurance is generally voluntary, although a lender or other security arrangement may require it. Employers' liability is also generally optional, but sector-specific or professional rules can create exceptions. The policy defines the insured risk, limits, exclusions, duration, excess, renewal and cancellation terms. An excess is the amount the policyholder pays towards a covered claim. Premiums depend on the risk, selected cover, vehicle or property value, driver, previous claims and intended use. Policy fees and document duty can be added to the premium, with document duty collected through the Commissioner for Revenue. Motor Third Party premiums are not based on the vehicle's value, while comprehensive and own-damage premiums can be affected by market value, vehicle age, driver details, no-claims discount, claims history and use. A vehicle used on Malta's roads requires Third Party cover under the Motor Vehicles Insurance (Third-Party Risks) Ordinance. This cover protects against defined third-party risks, including passengers and third-party property; damage to the policyholder's own vehicle requires optional additional cover. Common products include Third Party Only, Third Party Fire & Theft and Comprehensive cover. Motor policies are often renewed annually and a certificate is issued at renewal. The vehicle owner should keep the vehicle roadworthy, permit only authorised drivers and notify the insurer or relevant authority promptly when the vehicle is transferred. A vehicle's current value matters particularly for own-damage and comprehensive cover. People can buy insurance directly from an insurer, through an Insurance Agent, through an independent Insurance Broker, or through a Tied Insurance Intermediary or Ancillary Insurance Intermediary. Except for an Introducer, these channels require MFSA licensing or enrolment. An Introducer may make contact but does not advise, provide policy documents or handle money. EU-passported insurers may operate in Malta, but a non-Malta insurer may not be supervised by the MFSA and may not provide local Protection and Compensation Fund protection. Foreign law, a different complaints procedure or the absence of a local claims representative can also affect the policy. The MFSA Financial Services Register helps check whether an insurer or intermediary is authorised. The applicant should provide complete and truthful information about facts requested by the insurer. Concealing a material fact can lead to cancellation, rejection of a claim or repayment of money. The customer should check the policyholder and beneficiary, insured risks, exclusions, limits, excess, duration, renewal and cancellation rules, claims deadlines and every fee. The insurer or intermediary should act fairly, honestly, professionally and in the customer's best interests and should provide a Product Information Document in a durable medium. A payment receipt should separate the premium, document duty and fees. Most private policies have no general automatic cooling-off period. Life and other long-term policies can carry a Statutory Notice allowing withdrawal for up to 30 days, usually subject to the value of units or other contract terms. Early surrender of a life policy can produce substantial deductions and may result in no refund. Changing or switching cover during a policy term can trigger fees, document duty or short-period rates, so the replacement policy should be secured before cancelling the existing one. A claim should be reported to the insurer as soon as possible using the policy's required form and documents. For motor claims, written notice may be required within two weeks. A front-to-rear collision normally uses the Bumper to Bumper Form; other collisions may require Local Wardens, the police or eTARS. The policyholder should keep photographs, forms and copies and should not admit liability. The insurer normally delivers the eTARS record within three to four working days. In some third-party motor claims, the insurer can issue a registered or judicial notice, giving the recipient a ten-day objection period before payment. The Protection and Compensation Fund and the Motor Insurers' Bureau provide protection in specified cases involving uninsured or unknown vehicles, hit-and-run incidents and certain Government vehicles. Protection for insurer insolvency is limited to protected risks, commitments, exclusions and limits under the current rules. A customer should first send a written complaint to the insurer or intermediary. The provider should normally respond within 15 working days and may take up to 35 working days under the applicable complaint process. If the response is unsatisfactory or does not arrive, an eligible natural person, micro-enterprise, consumer association or voluntary organisation can generally approach the Office of the Arbiter for Financial Services within two years of learning about the issue. OAFS does not generally handle a motor third-party complaint against another driver's insurer or a home-damage complaint against a neighbour's insurer. The MFSA supervises firms but does not award individual compensation; court proceedings remain available.