In Belgium very few forms of insurance are mandatory. The main forms of insurance that are mandatory are health insurance (usually through a health mutual), for motorists, insurance that (at least) covers injury to third parties and/or damage to their vehicle or other property and for homer-owners a policy that covers the repayment of their mortgage if they die before it has been paid off. In addition to insurance cover that is mandatory there are a range of non-mandatory policies that cover fire theft, accident damage caused by yourself or another member of the household and policies that cover most or all of the costs of a hospital stay that are not covered by the health mutual.
Which insurance policies are mandatory and which is it advisable to sign up to?
Mike Barlow
Published:
But which of these optional policies is it advisable to sign up to and what exactly is covered? The financial expert Chris Sugira examined the ins and out of some of the most popular forms of insurance for VRT News’ podcast Money Time.
Chris Sugira told VRT News that “There are only a few forms of insurance that are a legal requirement. I am thinking mainly of health insurance and third-party vehicle insurance if you have a car. For most people, these are basic forms of insurance. However, specific professions or free time activities such as hunting, for example, require additional specific forms of insurance”.
“Everyone in Belgium is obliged to have healthcare insurance. This form of insurance is available either through a health mutual of through the Auxiliary Fund for Sickness and Disability Insurance. Insurance through the Auxiliary Fund for Sickness and Disability Insurance is free. Healthcare insurance covers a large portion of the cost of a visit to a GP, dentist, etc and the cost of prescription medication is (in the main) at least in part reimbursed. Many health mutuals also offer additional benefits, such as paying part of their member’s sport club subscription fees and holiday camps for children”.
Hospitalisation insurance best via health mutual or insurance company?
In order to avoid facing big hospital bills you can choose to take out hospitalisation insurance. This form of insurance is not compulsory. Some people are offered hospitalisation insurance by their employer as part of their salary package. If you have to take out insurance yourself, you can often do so with your health insurance fund or you can opt to take out hospitalisation insurance through an insurance company.
Chris Sugira told VRT News that “Hospitalisation insurance can often be useful. For example, when you're pregnant”.
Mandatory insurance for motorists
Everyone driving on the public highway in Belgium is obliged by law to take out third-party motor insurance. “This insurance covers any damage you might cause to other people and property. It also covers passengers in your vehicle, but note that as a driver, this form of insurance doesn’t automatically cover you as a driver insured for bodily harm after an accident. Damage to your car itself is also not covered”.
However, if you wish you can opt for fully comprehensive vehicle insurance, for example. “You can choose from a number of additional insurance policies, such as fully comprehensive. Drivers' insurance ensures that bodily harm to the motorist themselves is covered is also covered when you cause an accident yourself. Other options include insurance that covers legal expenses and vehicle breakdown assistance insurance.’
Home insurance covering fire and other damage
Although fire insurance is not mandatory for homeowners, it is certainly advisable to take out a fire insurance policy. Those that take out a mortgage to pay for their home may well be obliged by their bank to take out a fire insurance policy.
Chris Sugira told VRT News that "This is often referred to as home insurance. It covers the building and its contents against fire damage, but also against storm or flood damage”.
"The cover extends further than your own home. Damage to third parties is also often covered. Always read the small print. Some home insurance policies also cover theft. However, this is not always the case”.
In Flanders and Wallonia those that rent their homes are legally obliged to take out a fire or home insurance policy.
Personal liability insurance
Personal liability insurance covers you and other members of your household in the event that you are held responsible for damage or injury to a third party or their property. This form of insurance is not mandatory, but it can prove useful. Some policies even cover damage or injury inflicted by pets.
Finally, when you take out insurance, it is best to monitor your personal situation regularly. "Household situations evolve and insurance policies must evolve with them. By making regular evaluations you can ensure that your policies are tailored to your current situation and that you remain covered for what you really need”.