Keeping your pension regulations and insurance policies up-to-date
It is important to check your insurance policies every year and, if necessary, to amend them. Any changes in your annual figures, turnover, wage and salary bill, and the number of staff may mean that you run the risk that a loss may not be covered (or not entirely so). In the case of many insurance policies their terms and conditions stipulate a duty to maintain everything up-to-date (while also ensuring you pay the appropriate premiums). What data is important? What risks will you be exposed to if you fail to provide that information? And what can you expect of us?
Your group or other pension plan
It is important for your staff’s pension entitlements to ensure the timely communication of their salary details to us and/or the relevant pension administrator. In the case of pension plans the value of the insured amounts and/or premiums depends on that of the salaries. After each insurance year the relevant pension administrator will ask you to check these details as soon as possible and to notify them or us of any change. Please ensure the timely submission of the salary data, so that the policies can be amended accordingly. This is also an appropriate time to check whether every employee has actually been registered for the different forms of cover provided by your pension plan. It is possible for you to avoid unnecessary expenses in this manner. You may view the key figures for 2018 which are important in this respect.
Your absence and income insurance policies
The value of the premiums for the absence, WIA employee and WGA risk-bearer insurance policies also depends on your wage and salary bill. The insurers update staff details in the following two ways:
1. Adjustments during the year
An increasing number of insurers adjust staff data during the year. You may register and deregister staff immediately. In this case no further data needs to be supplied after the final settlement.
2. Adjustment through final settlement
Based on your submission the insurer will determine the final wage and salary bill, the premiums and the new advance premiums after the end of the year concerned.
Does your absence insurance provide stop-loss cover? If so, the insurer will also adjust the self-retention (excess). In addition, the insurer may adjust the premium rate based on the amount paid out by way of a claim.
Alternatively, if you supply the details for the final settlement of one or more WIA employee insurance policies, this would be a good time to check whether the appropriate employees are insured. For instance, in the case of a mandatory plan, you are required to check whether all staff are members of it. If the plan is mandatory, you are required to check whether the appropriate staff are insured. Where such details are incorrect, you will run the risk that no cover will be available when an employee is sick or incapacitated.
Why is it so important that you provide updates?
On the one hand, submitting data for the final settlement is often a duty stipulated in the relevant policy terms and conditions. If you fail to submit the relevant information or to do so on time, the insurer may limit the cover or base the final settlement on a larger wage and salary bill (along with the relevant additional premiums). In specific cases a failure to submit periodic reports may even result in the suspension of the relevant contract.
On the other hand, it is important to you that your insurance is in line with the prevailing circumstances (within your business and otherwise) and any associated risks. In this way it is possible to avoid a situation in which full or partial compensation is not paid or an employee is not covered by the relevant insurance or pension plan.
Please submit your data on time
We trust that we have provided you with greater clarity here concerning the importance of timely submissions where requested by the insurer. This is not only a duty towards the insurer but also an important time to update your insurance. If your insurance cover is not appropriate, you will be exposed to major financial risks. This is why we find it important to assist you in this process.
Usually, insurers request any information that they require directly from you. How you can submit such privacy-sensitive information differs from one insurer to the next. Usually, insurers use secure portals, but you may also be asked to supply such data in an encrypted file.
What can you expect of us?
We monitor the process and the relevant insurer informs us of it. If you require an explanation of an insurer's letter, we are happy to provide one. Should you have any questions, require assistance to supply the appropriate information or if there has been any change in the expertise, experience, targets, risk appetite or financial situation within your business, please contact your risk manager. You may also reach us at info@vlc-partners.nl.