Building Safety Fee

This fee is only relevant for insurers underwriting insurance against fire, also when fire insurance is included in a package policy.

All insurance companies and other insurance undertakings shall, according to Art. 50 of the Act on Constructions no. 160/2010 (Lög um Mannvirki) and the Regulation on Building safety fee No. 1068/2010 (Reglugerð um byggingaröryggisgjald), each year collect along with their premiums a special Building safety fee for the Iceland Construction Authority (Mannvirkjastofnun).

The Building safety fee shall be 0.045‰ of the insurance amount of property insured against fire, whether the insurance is pure fire insurance or a composed insurance including insurance against fire. Statutory insurance against natural catastrophe is exempted as well as fire insurance of ships and aircraft.

If the duration of insurance is less than one year, the fee shall be proportional to the duration.

The Building safety fee shall be stated separately on the receipt for the premium.

The collecting undertakings shall return the fee to the Iceland Construction Authority within three months after the corresponding premium is due. Final settlement of the fee for each year shall take place when the annual accounts of the undertakings collecting the fee have been issued.

Insurers return the fee monthly or once per year when a company insures only few buildings or if turnover in premiums paid on Icelandic buildings is limited.

As stated above, the payment goes to the Iceland Construction Authority:

 Acount number:

 0301-26-190

 SWIFT (BIC) number:

 ESJAISRE

 IBAN number:

 IS14 0301 2600 0190 6112 1001 90

This material is taken from the website of The Financial Supervisory Authority - Iceland. Read document.

Regulation No. 1068/2010 about Building safety fee. Read document.