It is important to understand mandatory insurance in Switzerland to avoid legal problems and understand possible reimbursements. This article, "Understanding Mandatory Insurance in Switzerland," examines the main types of insurance in Switzerland. 😉
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⚠️ This article helps the reader choose their insurance. However, each person is responsible for their insurance choices and the financial consequences.
The political peculiarity of Switzerland
Switzerland is a confederation of several cantons, each with its own culture, traditions and laws.
Thus, the laws of one canton may differ from those of another, which means that each canton has its own insurance obligations.
In this article, we will analyze the most used insurances in Switzerland 😊
⚠️ If you do not live in Switzerland, the principle of choosing insurance for a minimalist is the same everywhere, but the obligations and benefits may change depending on the country.
The 3 compulsory insurances in Switzerland
➡️ In Switzerland, there are 3 insurances that are compulsory:
- Basic health insurance (lamal) for all Swiss residents.
- Accident insurance for employees
- Vehicle liability insurance
Other insurances are, in the majority of cases, free to be taken care of by the customer.
👉 Please note that some cantons require additional insurance. It is therefore important to check the requirements specific to your canton of residence!
Basic health insurance
Let's start with Lamal, the basic health insurance in Switzerland. Note that this is a highly criticized insurance in Switzerland.
Most people do not criticize its mandatory nature, but They are worried about the price increasing while the services are decreasing.
In reality, the main problem with insurance is the price, which is too high for people with low or middle salaries.
For example, between 1196 and 2015, health insurance increased by approximately 130%2 . However, wages did not increase by 130% during the same period.
Note that health insurance does not cover all medical expenses! For example, dental expenses are not covered for adults.
therefore, I created a table to understand what medical care you are entitled to with basic insurance 😉
| Domain | Blanket |
|---|---|
| Hospitalization | – Treatments and medical emergencies |
| Ambulatory | – Up to 500 CHF for transport – Up to 5000 CHF for rescues |
| Drugs | – Registered in the LMT and LS list |
| Dental care | Only medical emergencies |
| Therapies | By certain therapists who have training recognized by insurance |
| Emergencies abroad | Up to a certain limit |
If you're interested, here's a link to see what you have the right to in details1.
👉 Regarding the savings to be made with basic health insurance. I have written a more detailed article on the subject which is available here 😉
With basic health insurance. I don't have accident insurance? 🤔
No! It is not included in health insurance!
Let's analyze accident insurance together
Accident insurance
Accident insurance is not mandatory in Switzerland. In reality, accident insurance is only mandatory for employees. That is, employees who work for a boss.
👉 Note that It is the employer's responsibility to pay for this insurance for the employee. As a result, the employee benefits from this service for free 😊
👉 In addition, this insurance covers accidents during work or also during leisure activities!
For example, it is covered by your employer's insurance if you get injured while cycling downhill during your weekend.
Is an employee always insured by the employer regarding accident insurance?
In most cases yes. But not always.
Indeed, it is possible to work for an employer without having this accident insurance. The employer only has to pay for accident insurance if the employee is working more than 8 hours per week.
If an employee works less than 8 hours per week, the employer has no legal obligation to insure his employee.
What happens if an employee has multiple employers?
An employee must have at least one employer to be eligible for accident insurance, and work at least 8 hours per week for that employer. If this is not the case, the employee is not insured!
To give an example, I imagined Sara and Louise. Both have several employers and work 16 hours a week. However, do both benefit from accident insurance?
| Sarah Working hours at the employer's premises | Louise Working hours at the employer's premises | |
|---|---|---|
| Employer 1 | 6h | 6H |
| Employer 2 | 4H | 10H |
| Employer 3 | 6h | |
| Total | 4 p.m. | 4 p.m. |
In this case, only Louise will benefit from her employer's accident insurance, because she works more than 8 hours per week for an employer.
Sara is not covered for work-related accidents and must take out insurance herself if she wishes.
How to take out accident insurance?
All health insurance companies offer accident insurance. Simply use a price comparison website and analyze which accident insurance policy best suits your needs.
Vehicle liability insurance (RC)
People tend to confuse this vehicle RC with household RC.
👉 Third-party liability vehicle insurance only covers bodily injury and property damage to others. during a road accident.
👉 Household liability insurance covers damage you cause to others, whether bodily injury or property damage. but not when you are driving a vehicle.
In reality, when you buy a vehicle. You must have vehicle liability insurance to drive on the road; it's a legal requirement.
👉 Generally, insurance coverage is limited to 100,000 million in damages, This is sufficient in most cases.
⚠️ On the other hand, this insurance does not cover damage to your car in the event of an accident if you are at fault.
Partial and full insurance
SIf you wish to have insurance for damage to your car, you will need to choose one of two options:
- Partial insurance – That is, protecting your vehicle against natural damage, but this insurance does not cover damage caused by your fault.
- Comprehensive insurance – You are reimbursed for natural damage and damage caused by your fault (without intention).
Each option added to your vehicle means increasingly expensive insurance.
| Insurance | Protects against | Price |
|---|---|---|
| Liability insurance | Damage against bodily injury and property damage to others in case of accident | Basic |
| Partial insurance | Damage due to natural disasters (such as snow or flooding) | AVERAGE |
| Full Casco | Most of the material damage to your vehicle is your fault | Dear |
Bonus: Household liability insurance (RC)
Household liability insurance is not legally required. However, it is requested by many homeowners.
Therefore, if you're a tenant, this insurance is very likely to be part of your annual expenses 😐
👉 This insurance pays for all the damage you have caused to others (unless it is proven that it was criminal on your part). Depending on the insurance contract, this insurance can insure you both inside and outside.
For example, if you broke a window in your home and you are a tenant. Another example, if you accidentally broke a friend's television.
But be careful⚠️. This insurance insures you against damage you have done to others. But not to yourself.
Additional insurance
Note that I did not write about all insurances!
In fact, there are many additional insurances. For example:
- Travel insurance
- Legal protection
- Dental insurance
I advise you to only use the insurance policies that you deem necessary.
Conclusion
Here is a summary of the 3 insurances cited:
| Insured for | |
|---|---|
| Lamal health insurance | Some medical benefits in case of illness |
| Accident insurance | Damages in the event of an accident during employment or leisure |
| Liability insurance (vehicle) | Material and bodily damage to other drivers and passengers (unintentional). In road accidents |
👉 It should be noted that these 3 insurances are compulsory in the majority of cases.
In my opinion, As these are insurances that have a high ceiling and may be necessary, I do not dispute them.
On the other hand, the prices offered by basic health insurance are obviously too high compared to reality. Especially for those who rarely see the doctor.
⚠ In my opinion, I like to insure myself at least for my needs. However, each person is responsible for the choice of their insurance and the consequences!
Pro Tip
I will do a more detailed article to explain it. But I really like the prices offered by Simpego and Smile.Direct for household and vehicle insurance.
⚠️ I cannot guarantee their price or the quality of the reimbursement. However, these two insurances are often among the least expensive.
FAQ – Mandatory insurance in Switzerland
What insurance policies are mandatory in Switzerland?
The main mandatory insurances in Switzerland are basic health insurance (LAMal), accident insurance for employees, and vehicle liability insurance (RC) for vehicle owners. Additional requirements may apply depending on the canton of residence.
Is health insurance compulsory in Switzerland?
Yes. Everyone residing in Switzerland must have basic health insurance (LAMal). This insurance covers a significant portion of medical and hospital expenses.
What does basic health insurance (LAMal) cover?
Basic health insurance covers medical consultations, hospitalizations, certain medications, emergency care, and several recognized treatments. However, dental care for adults is generally not covered.
Is accident insurance mandatory in Switzerland?
Accident insurance is mandatory for employees working more than 8 hours per week for the same employer. Those not covered by an employer's insurance must generally add accident coverage to their health insurance.
Who pays for accident insurance in Switzerland?
For the employees concerned, accident insurance is provided by the employer according to the rules laid down by Swiss law.
Am I covered in case of an accident during my leisure activities?
Yes. If you work more than 8 hours a week for the same employer, accident insurance generally covers work-related accidents and accidents occurring during leisure time.
What if I work less than 8 hours per week?
If you work less than 8 hours per week for your employer, you are generally not covered for non-work-related accidents. It is therefore advisable to add accident coverage to your health insurance.
Is vehicle liability insurance mandatory?
Yes. Anyone wishing to drive a car, motorcycle or other motorized vehicle must have vehicle liability insurance.
What does vehicle liability insurance cover?
Vehicle liability insurance covers material and bodily damage caused to third parties in an accident for which you are responsible.
Does my vehicle liability insurance cover damage to my own car?
No. To cover damage to your own vehicle, you generally need to take out partial or full comprehensive insurance.
What is the difference between partial and full comprehensive insurance?
Partial comprehensive insurance primarily covers damage caused by external events such as theft, hail, or natural disasters. Full comprehensive insurance also covers damage to your vehicle in an accident where you are at fault.
Is household liability insurance mandatory in Switzerland?
No. Household liability insurance is not generally required by law. However, it is often required by landlords when renting out a property.
What does household liability insurance cover?
Household liability insurance covers material or bodily damage unintentionally caused to others, whether at home or in certain everyday situations.
Are supplementary insurance policies mandatory?
No. Supplementary insurance, such as dental, travel, or legal protection insurance, is optional. Each person can choose the coverage that best suits their needs.
How to choose your insurance in Switzerland?
When choosing insurance in Switzerland, it's recommended to compare prices, deductibles, exclusions, and reimbursement limits. It's also important to verify which insurance policies are actually mandatory to avoid paying for unnecessary coverage.
Is it possible to live in Switzerland with only the mandatory insurance?
Yes. Many people limit themselves to mandatory insurance. However, some optional insurance policies, such as household liability insurance or legal protection, can offer valuable financial protection depending on your personal circumstances. On the other hand, in my opinion, very few supplemental insurance policies are truly useful.
Understanding Mandatory Insurance in Switzerland
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Appendices: Compulsory insurance in Switzerland
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