The Insurance Complaints Committee

The FME accommodates the Insurance Complaints Committee, which deals with disputes concerning liability for compensation between clients/consumer and insurance companies. The FME receives appeals submitted by clients and provides the committee with meeting facilities and clerical assistance.

Committee by-laws

(Not available in english)

Location and mailing address

The Insurance Complaints Committee
Sudurlandsbraut 32
108 Reykjavík
Iceland
Tel: + 354 525 2700
Fax: +354 525 2727

E-mail: urskvatr@fme.is
Office hours: 9:00 to16:00 Monday-Friday

Who can turn to the committee?

Consumers may lodge their appeals with the committee. A consumer, as defined in the by-laws for the committee, is anyone who is insured and/or believes he/she is entitled to insurance compensation. Insurance companies are responsible for keeping their clients adequately informed as to the option of appealing to the committee. Appeals are made at the consumers' discretion, i.e. they do not need to obtain the approval of the insurance company.
However it should be pointed out that before consumers can approach the committee, they must present their claims to the insurance company in question and, if necessary, the Insurance Companies Complaints Committee. Handling of a case by the claims committee is free of charge. When the ruling of the Insurance Claims Committee has been made official, the consumer shall as a rule be informed of his/her right to appeal to the complaints committee. If the claims committee has not come to a decision on a case within four weeks, the consumer may automatically appeal to the Insurance Complaints Committee.

How does one seek a ruling?

Appeals can be made by filling in a special form. These can be found by selecting Appeals Form (Acrobat Reader)
or Appeals Form (Excel 97). The form must be printed out and delivered or sent by mail to the FME, Sudurlandsbraut 32, 108 Reykjavík, Iceland. Forms are also available at the FME office, the office of the Association of Icelandic Insurance Companies, from the insurance companies themselves and from the Consumers' Association of Iceland.

The appeal fee is ISK 6000. An appeal is not approved unless the fee is paid in full at the office of the FME or enclosed with the completed appeals form. The fee is refundable if the committee decides partly or wholly in the appellant's favour.

It is important to enclose with the appeal all necessary documentation concerning the disagreement at hand, including reasons for the complaint, the views of the appellant, etc. as detailed on the appeals form.

Careful preparation is helpful to the committee in concluding matters promptly and efficiently. Appellants are advised to study the information provided below on the committee and its areas of responsibility.

Who is responsible for the committee?

The Insurance Complaints Committee, founded in 1994, operates in accordance with an agreement between the Ministry of Commerce, the Consumers' Association of Iceland and the Association of Icelandic Insurance Companies. The by-laws of the Committee, which contain provisions regarding its operations, were published by an announcement in Government Gazette No. 33/1996.

What is the committee's area of responsibility?

The Insurance Complaints Committee handles disputes concerning liability for compensation, including liability between consumers and insurance companies licensed to operate in Iceland.

The committee does not decide on actual amounts for compensations unless it has obtained the approval of both parties, i.e. the consumer and the insurance company in question.

The committee does not handle disputes that should be dealt with by the authorities, claims that cannot be valued in financial terms, changes to the premiums of insurance companies, disputes before civil courts or courts of arbitration, or cases that are so unclear, or where the claims are too vague to allow for a proper ruling.

The main role of the Insurance Complaints Committee is to handle disputes between a consumer and a domestic insurance company. It is, however, possible to refer to the committee a complaint against a foreign company that is licensed to operate in Iceland. In order for the committee to make a ruling in such a case, the foreign company has to give its endorsement.

The Insurance Complaints Committee decides whether a dispute comes under the Committee's area of responsibility and whether its nature and supporting documents allow for a ruling in the matter. If the committee decides this is not so, the case is dismissed.

How does the committee operate?

When an appeal has been lodged with the Insurance Complaints Committee, the insurance company or companies concerned are notified of the appeal and given two weeks to respond and inform the Committee of their stance. The insurance company in question is expected to notify the counter-party of an appellant of the appeal, if such a party exists. The Committee stresses the importance of observing the right to object in every case before a final ruling is made.

The Committee rules on the basis of information that is either submitted or collected in some other way. All Committee rulings are supported with arguments. When a ruling has been made, its details are sent out to the parties concerned within a week. The Committee has four weeks in which to pass its decision on a case that has been deemed fit for ruling.

Decisions on a ruling are reached by a majority vote of committee members. Committee rulings are not binding for the consumer, who may refer the case to a court of law at any time. Committee rulings are binding for the insurance company concerned unless the company gives notification of non-compliance to the consumer and the committee within a period of two weeks of receiving the ruling.

A Committee member is considered unfit to handle a case and is required to step down whenever the rules on incompetence apply to his/her participation as stated in Article 5 of Act 91/1991 on civil proceedings. Committee members can always withdraw from a case if they have doubts about their competence.

There are certain limits to the re-opening of cases, which further emphasises the importance of carefully preparing each appeal. According to Committee by-laws, the Committee may decide that a case for which a ruling has already been passed be examined again on the basis of new information, assuming the appellant was unable to collect or produce at the time of the original ruling and which may affect its outcome.

Committee rulings do not prevent subsequent handling of a case by a court of law.

Who are the committee members?

The Insurance Complaints Committee is made up of three representatives and three alternates. All committee members shall have a law degree and be nominated for a term of two years. Each of the three founding parties of the committee nominates one Committee member and an alternate. The Committee selects its chairman and vice-chairman.

Present committee members are:

Full members:
Mr Rúnar Guðmundsson, senior Attorney of the Financial Supervisory Authority and a district court attorney, chairman -
nominated by the Ministry of Commerce
Mr Jón Magnússon, Supreme Court attorney - nominated by the
Consumer's Association
Mr Valgeir Pálsson, Supreme Court attorney - nominated by the
Association of Icelandic Insurance Companies

Alternates:
Ms Sigríður Rafnar Pétursdóttir, legal advisor of the Ministry of Commerce
Mr Vilhjálmur H. Vilhjálmsson, Supreme Court attorney
Ms Dögg Pálsdóttir, Supreme Court attorney

Survey of activities

1994 (From September until year-end); 36 appeals, a change in favour of the appellant in 52,7% of the cases. In two instances, an insurance company rejected the Committee decision.
1995 - 256 appeals, a change in favour of the appellant in 43,3% of the cases. In four instances, an insurance company rejected the Committee decision.
1996 - 230 appeals, a change in favour of the appellant in 43,9% of the cases. In four instances, an insurance company rejected the Committee decision.
1997 - 270 appeals, a change in favour of the appellant in 39,6% of the cases. In five instances, an insurance company rejected the Committee decision.
1998 - 252 appeals, a change in favour of the appellant in 37,3% of the cases. In eight instances, an insurance company rejected the Committee decision.
1999 -312 appeals, a change in favour of the appellant in 35,5% of the cases. In ten instances, an insurance company rejected the Committee decision.
2000 - 322 appeals, a change in favour of the appellant in 36,6% of the cases. In elleven instances, an insurance company rejected the Committee decision.
2001 - 250 appeals, change in favour of the appellant in 33,3% of the cases. In thirteen instances, an insurance company rejected the Committee decision.

Most of these cases each year dealt with motor vehicle insurance. The number of appeals in other insurance classes has increased over the last years.

• Register of decisions 1999   (Not available in english)
• Register of decisions 2000   (Not available in english)
• Register of decisions 2001   (Not available in english)
• Register of decisions 2002   (Not available in english)
• Register of decisions 2003   (Not available in english)
• Register of decisions 2004   (Not available in english)
• Register of decisions 2005   (Not available in english)
• Register of decisions 2006   (Not available in english)