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, before consumers can approach the committee, they must present their claims to the insurance company in question.

Appeals can be made by filling in a special form A special form must be used, that can be obtained here. The form must be signed and sent by email to tryggingar@nefndir.is

Private individuals pay a fee of ISK 10.000 upon lodging an appeal. This fee is refunded, when a ruling has been passed, if the client’s claim is wholly or partly accepted. The fee may be refunded if a case is dismissed following an agreement between the client and the financial enterprise concerned.

Owners of private enterprises whose complaints are related to their business activities pay a fee of ISK 25.000 upon lodging an appeal. In other respects, the provisions of paragraph 2 above shall apply to the owners of private firms. Legal persons pay a fee of ISK 50.000.

An appeal is not approved unless the fee is paid in full into:

                      0370-26-030321
                      Kt. 450122-0250

Please enclose a transcript of the payment with the complaint. 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.

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.

The Committee operates in accordance with an agreement between the Ministry of Finance and Economic Affairs, the Financial Services Association, and the Consumers’ Association of Iceland as of 1st of January 2022.

• 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 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. 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.

When an appeal has been lodged with the Insurance Complaints Committee, the insurance company or companies concerned are notified of the appeal and given three weeks to respond and inform the Committee of their stance. The insurance company in question is expected to notify the counterparty 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 based on information that is either submitted or collected in some other way. All Committee rulings are supported with arguments and shall be made within 30 days of receiving all the documentation relevant to the complaint in question. If the complaint is complex the ruling can be extended for 90 days. When a ruling has been made, its details are sent out to the parties concerned within 10 days. The ruling is always in Icelandic.

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 four weeks of receiving the ruling.

There are 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 based on 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.

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.