The Confederation may provide insurance and reinsurance cover if such cover is not obtainable on the insurance market or is not obtainable on reasonable conditions. It may offer cover for:
essential goods and services;
essential means of transport;
warehouses.
It may provide insurance cover against the risk of war and other risks such as piracy, insurgency and terrorism.
The Federal Council shall regulate the scope and application of insurance and reinsurance cover and determine the date from which such insurance may come into force and the date on which cover may be granted.
The Confederation shall provide cover in accordance with the principles customary for private insurance and against payment of a premium. It may deviate from this only to the extent that these principles would make the insurance cover which is necessary for the economic provision of the country impossible.
The FONES shall set the amount of the premium to be paid and the conditions in an insurance contract. The premium shall be calculated according to the risks involved, the scope of cover and the insurance period.
Private insurance institutions licensed in Switzerland may be consulted over technical aspects of the insurance cover.
Premiums and funds received shall be recorded in the Confederation’s annual financial statements and used for the purpose of covering the claims. The earmarked funds shall bear interest.
If the fund’s assets are not sufficient to cover the losses, the Confederation shall raise the shortfall from general financial resources. The advance shall be repaid out of premium revenue.
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