Loss of Licence

What is loss of licence insurance?

Many people have jobs that require them to fulfil requirements for good health, and to have a valid health certificate confirming this.

You may work on ships, offshore in the oil industry, as flying personnel or in other industries where a health certificate is a requirement.

If you for some reason no longer fulfil the health requirements and therefore lose your health certificate, you will also lose your job. «Loss of licence» insurance is an insurance policy that compensates for your future loss of income as a result of losing your health certificate.

Do I have «Loss of licence» insurance?

«Loss of licence insurance is not mandatory and it is therefore important that you check whether you have such insurance.

Some employers have entered into an agreement with an insurance company for such insurance for their employees, and some employers are required by collective agreement to take out such insurance for those of their employees who require a health certificate.

For seafarers, for example, an agreement has been negotiated between employers' organisations and seafarers' organisations to the effect that all seafarers on board ships owned by shipping companies affiliated with Norwegian Shipowners' Association, NHO Maritime and Coastal shipping companies must be covered by Social Security Insurance, which also includes insurance against loss of health certificate.

You can also insure yourself against the loss of a health certificate/licence if you have a job that requires such a certificate.

For example, if you are a member of Norwegian Officers' Association you can take out «Loss of licence» insurance provided that you are serving on a vessel in the navy, on an aircraft in the air force or belong to the army's Jaegerkommando or Marinejegerkommando.

What does it take to take out «Loss of licence» insurance?

The conditions for obtaining such insurance are that you have not reached the current retirement age and have a valid health certificate when the insurance is taken out. You must also be 100 per cent able to work and have a job that requires a health certificate.

Do I need legal advice if I lose my health certificate?

If you lose your health certificate, you must notify the insurance company as soon as possible. If you notify too late, you may lose your right to compensation.

The insurance terms related to the loss of a health certificate are often difficult to understand, and the assessments made by insurance companies when claims are made can be difficult to challenge.

The insurance companies require that the loss of the health certificate is permanent before compensation is paid. Disagreements may therefore arise as to whether the loss of the health certificate is permanent or not.

There may also be a discussion about whether the loss of the health certificate is a consequence of a compensable accidental injury or illness, or whether it is due to completely different circumstances. You may find that the insurance companies overrule the health certificate and perhaps set it aside.

The insurance terms and conditions also contain many exceptions that mean you may not receive the compensation you think you are entitled to. For example, an employee in the Norwegian Army Jaeger Command loses the right to compensation under the «Loss of Licence» insurance if the loss of the health certificate is due to accidental injuries sustained when parachuting without orders.

The insurance company may reserve the right not to cover the loss of a health certificate that occurs within a certain period of time after such insurance has been taken out, if this is due to an illness that you must be assumed to have known about when you took out the insurance.

Such a reservation can create disagreement about what you knew or should have known about your own health at the time of subscription. This often involves difficult assessments of medical records and other evidence.

What will I receive in compensation under the «Loss of Licence» insurance?

What you will receive if you qualify for compensation for a lost health certificate varies, depending on the agreement entered into. It is important that you check what cover you have, and it is important to realise that in many cases you can take out additional insurance to increase the payment if you are deprived of your health certificate.

As a rule, the insurance payment is linked to the National Insurance basic amount (G), where, for example, 15 G (15 times the basic amount) may be the maximum compensation, but with a reduction linked to your increasing age and with an escalation linked to how long you have been in the insurance scheme. Normally, it is the basic amount at the time of settlement that is used to calculate the compensation amount.

What if I lose my health certificate in connection with an occupational injury?

If you are injured at work and therefore have occupational injury insurance in addition to the loss of licence insurance, the occupational injury insurance will be coordinated with the loss of licence insurance. This means that what you receive under the Loss of Licence insurance will be deducted from the compensation you are entitled to from the occupational injury insurance company.

Read about Tore Johansen, who did not declare himself unfit for work within one year of an occupational injury at sea and missed out on NOK 600,000 in compensation from his «Loss of licence» insurance.

Why should I choose Advokatfirmaet Halvorsen & Co?

Over almost 30 years, our clients have received several billion kroner in compensation. We have extensive experience and specialise in disputes concerning loss of licence insurance. We can therefore help you get the compensation you are entitled to.

We always offer a free consultation on your loss of licence case. Get in touch with us today.