Advisory services and support in the fields of compensation and insurance law

Liability insurance is a type of property insurance that, under specified conditions, covers compensation liability incurred by the policyholder. In such cases, the injured party may bring a claim directly against the insurance company without going through the policyholder.

Employer liability is regulated by Chapter 2 of the Norwegian Damages Compensation Act (Skadeserstatningsloven), where the main rule in Section 2-1 states that the employer is liable for damage caused intentionally or negligently in the course of an employee’s performance of work or duties for the employer. It is not necessary to identify which employee caused the damage (anonymous fault). Liability may also arise as a result of a combination of several employees’ mistakes (cumulative fault).

Employer liability is strict in the sense that it is not required that the employer has acted culpably. The rules apply both to public entities and to private parties who, in or outside commercial activity, employ others in their service.

An insurance policy involves the transfer of financial risk from a policyholder to an insurance company in return for payment in the form of an insurance premium. The many types of insurance can be divided into two main categories: personal insurance, which relates to a person’s life or health, and property insurance, which covers various forms of financial loss.

The most important statute governing insurance is the Insurance Contracts Act, which treats personal insurance and property insurance in separate parts. Other relevant statutes include the Motor Liability Act, the Occupational Injury Insurance Act, and the Natural Perils Insurance Act. Within the framework set by legislation, each individual insurance case is governed by the terms of the relevant insurance contract. Extensive use is made of standard terms and conditions.

An insurance contract is an agreement on insurance between an insurance company and a policyholder. An insurance policy is normally valid from the moment the contract is concluded, even if the premium has not yet been paid.

The Insurance Contracts Act contains extensive provisions on insurance contracts, which, however, apply only insofar as no other agreement provides otherwise. The content of an insurance contract therefore, in most cases, follows the standard terms and conditions prepared by the insurance company, which the policyholder accepts by entering into the agreement. However, the provisions of the Act cannot be deviated from to the detriment of the policyholder or others who have rights under the contract.

An insurance certificate, formerly often called a policy, is a document issued by the insurance company when an insurance contract has been concluded. The insurance certificate usually contains only the main features of the agreement and otherwise refers to the insurance terms and conditions, which are often attached as an appendix to the insurance certificate.

An insurance premium is the price a policyholder pays for an insurance policy. The Insurance Contracts Act contains provisions regarding premiums for both property insurance and personal insurance. The payment deadline must be at least one month from the day the company has sent notice. The insurance is normally valid even if the policyholder does not pay the premium within the deadline. In order for the company to be released from liability, it must send a new notice setting a new deadline and stating that the insurance will lapse if the premium is not paid within that period.

The insurance value is the value that an insured item has according to the agreement between the insurance company and the policyholder. If an item is lost, the policyholder is entitled to receive the insurance value as compensation. If the contract does not specify the insurance value, the Insurance Contracts Act provides that the customer is entitled to full compensation for their financial loss.

Pharmaceutical liability is strict liability for damages caused by medicines. The manufacturer or importer is, with some exceptions, liable regardless of fault.

Non-pecuniary damages (general damages for personal injury) are compensation for non-economic loss that may be claimed when the injured party has suffered a permanent and significant medical injury. In assessing the amount of compensation, consideration is given to the medical nature of the injury and its impact on the person’s quality of life and ability to lead a normal life. In practice, the starting point is the tables used for determining general damages in cases of occupational injury.

Strict liability is liability for damages regardless of whether the liable party has acted negligently or intentionally. The rules on strict liability were originally uncodified and began to gain acceptance in Norwegian case law in the 1870s through the development of the concept of “dangerous enterprise,” where liability was formally based on negligence (culpa liability). Pure strict liability was established in a Supreme Court judgment, Rt. 1905 p. 715, when the municipality of Bergen was held liable for damages after a water pipe burst. The uncodified doctrine of strict liability was thereby established, as confirmed by a number of later judgments. Over time, strict liability has been codified in several areas of law.

Compensation for non-pecuniary damage (non-economic loss) is compensation for pain and suffering, which under the Damages Compensation Act (Skadeserstatningsloven) may be awarded to the injured party if the tortfeasor has intentionally or through gross negligence caused personal injury, inflicted an insult, or violated certain provisions of the Penal Code.

Patients and others who have suffered a loss due to a patient injury are entitled to compensation when the injury is caused by:

– a failure in the provision of healthcare services, even if no one can be held responsible,
– a technical failure of equipment, instruments, or other devices used in the provision of healthcare services,
– infection or contagion, where this is not mainly due to the patient’s condition or illness,
– vaccination, or
– circumstances giving rise to liability for the health and care services or healthcare personnel under general rules on compensation.

Even if there is no basis for liability under these rules, compensation may exceptionally be granted where a patient injury has occurred that is particularly severe or particularly unexpected, and which cannot be regarded as a risk the patient must accept. Consideration shall be given to whether sufficient information was provided in advance.

Product liability compensation is compensation for damage caused by a product for which the liable party is the manufacturer, importer, or distributor. Liability arises if the product does not provide the level of safety that a user or the general public could reasonably expect.

Negligence is a degree of fault which means that the actor has not behaved as a careful and reasonable person would have done. A distinction is made between gross negligence and ordinary negligence depending on how blameworthy the conduct is. The boundary between gross and ordinary negligence is determined by judicial discretion.

A person who acts negligently and thereby causes damage to another becomes liable for compensation under the principle of culpa liability. If the injured party has also acted negligently and thereby contributed to the damage, the compensation may be reduced or entirely eliminated. In tort law, it generally makes no difference whether the negligence is gross or ordinary. However, compensation for non-pecuniary damage (satisfaction) may only be awarded if the wrongdoer has acted intentionally or with gross negligence.

Negligence in insurance law exists if the policyholder, through negligent conduct, causes an insured event. For example, a house may burn down due to the owner’s carelessness. If the case involves ordinary negligence, the insurance company must pay full compensation. If it involves gross negligence, compensation may be reduced or entirely denied, unless it concerns liability insurance.

Assessment of damages involves determining the amount of compensation. As a general rule, only financial loss is covered. Exceptions include, among others, compensation for non-pecuniary damage and compensation for pain and suffering (see separate sections on these topics).

Compensation for personal injury shall cover incurred loss, loss of future earnings, and expenses that the personal injury is assumed to cause the injured party in the future. Compensation for property damage and other financial loss shall cover the injured party’s economic loss. In the event of a total loss, this will generally mean that the injured party is compensated for the replacement value.

Occupational injury insurance is a mandatory insurance that all employers must take out for their employees. The insurance provides employees with compensation for financial loss resulting from occupational injuries, other injuries and illnesses that, under the National Insurance Act, are treated as equivalent to occupational injuries, as well as other injuries and illnesses caused by exposure to harmful substances and work processes.