The other types of insurance

The other social insurance schemes to which you should subscribe

Law on occupationnal benefits (LOB)

The occupational benefit plan (second pillar) complements the OASI/DI/IC (first pillar).  The two combined should allow retired persons to maintain, in large measure, their previous standard of living.  By adding together, the two sets of benefits, the objective is to achieve approximately 60 per cent of the last salary.

The LOB is obligatory for all salaried persons already subject to OASI who receive a minimum annual income as set out in the Law on Occupational Pensions. 

The obligation to take out the insurance begins at the onset of employment but no earlier than 17 years of age.  At first, the contributions cover only the risks of death and disability.  After reaching 25 years of age, the insured person also contributes to a pension scheme.  Certain groups of persons are not subject to the compulsory system.

Memo 6.06 - Obligation to join a pension fund in accordance with the LOB (in French only)

Accident insurance (AI)

This is compulsory for all salaried persons working in Switzerland.  Its aim is to provide compensation in the case of work-related health problems or work-related accidents. The AI provides benefits in the form of medical treatment and financial support.

The payment of compulsory occupational accident and health insurance premiums is the employer’s responsibility, whereas the payment of compulsory personal accident insurance premiums is the employee’s responsibility.  Once the employee’s share has been deducted from his/her salary, the employer then tops up with his/own share and pays the whole premium.  The premiums vary depending on the insured person’s salary and the type of company.

Memo 6.05 - Mandatory accident insurance AIA  (in French only)

Health insurance act (HIA)

This is a private insurance which is compulsory for all persons domiciled in Switzerland (even if they do not work in the country).  Everyone has a free choice of health insurance provider.  Adults and children are insured separately.  The aim is to provide protection in the event of illness, maternity or accident insofar as the costs are not covered by an accident insurance.

Memo 6.07 - Mandatory Health Insurance: individual premium discount (in French only)

Income compensation (linked to gainful employment)

This is a private and voluntary insurance for all persons gainfully employed in Switzerland.

The aim is to compensate the employer’s statutory obligation to pay salary for a limited period in the event that an employee is incapable of working for health reasons.

The contributions and premiums depend on the degree of coverage (illness, maternity, accident).  The payment of the premiums is shared equally between employer and employee.

If you need more information, contact your private insurance provider.