Auto Insurance Requirements in Denmark

Denmark adopted statutory requirements for automobile liability insurance in March, 1918. The Act is designated as Paragraph 33 of the Acts of 1918. The Act was amended in 1921 increasing the limits of liability required to be carried under this insurance. Find out more about low-cost auto insurance policies here.

The law requires owners of automobiles to keep in effect an insurance of not less than 20,000 Kroner (about $5,000) for motor cars operated in the state. The policy covers all third party damage. The insurance is required to be placed with a company acknowledged by the Government, and the conditions surrounding the insurance are made conditions of the acknowledgment which is to be obtained by the insurance company from the Government. The applying company is required to comply with the following conditions.

All liability in accordance with the above law is the liability of the company and the fact that the assured omits to perform his liability to the company shall not entitle the company to refuse any payment to a third party entitled to payment. The company must place an endorsement on their policy which will show that they have agreed to the above law.

The endorsement must be so worded that any existing conditions on the policy which do not conform to the above law are suspended, with the exception that the company can make a condition that it has the right of counter-claim against the insured if the insured acts against or neglects to fulfill his obligations to the company. The insurance is to date from the receipt of the signed proposal by the company or its representative, unless the insured stipulate otherwise.

Joint stock companies must accept insurances from all persons who apply if those persons be willing to accept the necessary conditions imposed by the insurance company and the alterations made by these Government conditions. Mutual are also bound in the same way to accept members, and all members are liable one for all and all for one for the liability of the mutual company. No member can withdraw with less than fourteen days’ notice, and such withdrawal does not terminate their liability until the expiration of the period of their insurance.

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