Compensation from the patient insurance is applied for by submitting a completed and signed application through the Individual Data Submission. 

Health insurance is responsible for collecting data for cases in the patient insurance. If you are entitled to benefit payments, Iceland Health also takes care of the assessment process. 

Health insurance sends the applicant a decision on the position on liability. If there is a right to compensation, a decision can be expected to take longer (see processing time for applications). 

Do I need the assistance of a lawyer to apply? 

• The applicant decides whether to get help from a lawyer.  

• Generally, this is not necessary as Iceland Health is responsible for receiving all documents and other work.  

• The applicant does not pay for the work of Iceland Health, but he must pay for a lawyer himself.

The following parties may be entitled to compensation: 

• A person who suffered physical or mental damage during disease treatment or investigation. 

• The spouse and/or a child of a person who died due to injury during medical treatment or investigation. 

• Parents/guardians of a child under the age of 18 who died during disease treatment or an investigation if an incident occurred in 2025 or later. 

• Parents/guardians in the event of miscarriage after 18 weeks of pregnancy or stillbirth after 22 weeks of pregnancy if the event occurred in 2025 or later. 

The damage must have occurred in one of the following: 

• A health care centre, hospital or other health institution in Iceland that is wholly or partly owned by the state. If damage occurred in 2024 or earlier. 

• In health care in Iceland if damage occurred in 2025 or later. 

• In domestic ambulance transport. 

• Health care or ambulance transport abroad if necessary treatment was being sought that is not available in Iceland under the auspices of Iceland Health. 

The damage can also be traced to one of the following: 

• Treatment was not conducted as well as possible based on knowledge and experience. 

• A malfunction or defect occurred in the device, utensils, or other equipment that was used. 

• Treatment complications if: 

  • It is rare (less than 1-2% of cases). 

  • Is serious compared to the underlying disease that was intended to be cured. 

  • The damage is more than it is reasonable for the patient to endure it without compensation. 

• The accident occurred due to treatment or investigation. 

• A medical experiment that was not for diagnosis or treatment. 

• The applicant's donation of an organ, tissue, blood or other bodily fluid. 

• Use of a medicinal product not in accordance with the approved indication or the use of a medicine that does not have a marketing authorisation but is required by the health authorities to reduce the risk of harm caused by external factors. 

• If there was damage before 2025 due to the use of no other treatment method or technology available and would have both: 

  • Prevent damage from occurring. 

  • Done the same as the method used. 

• Vaccinations with vaccines recommended by health authorities due to damage caused by the properties of the vaccine or incorrect handling of the vaccine, if:  

  • Treatment was not conducted as well as possible based on knowledge and experience. 

  • The damage is rare and serious. 

• Vaccination against COVID-19 in the years 2020-2023 with a vaccine from the Icelandic health authorities if the damage was due to:  

  • Vaccine characteristics. 

  • Incorrect handling of vaccines (such as transport, storage, distribution, vaccinations). 

  • You can apply for benefits from the patients insurance due to Covid vaccination here: Application for benefits from the patient insurance due to vaccination against COVID-19. 

If one of the above conditions are met, then Iceland Health will assess the right to compensation. If the benefit amount is above the minimum payment, the application is approved and Iceland Health pays compensation. 

If the incident is compensable, the following categories of compensation are examined: 

Costs paid for the incident 

Compensation for suffering

• Paid for each day from the day of the claim until health has stabilized. 

• The payment is higher for the days when the applicant is bedridden. 

Compensation for temporary loss of employment

• Payment is made for the period from the date of the injury until health has stabilized or the applicant can start working again.  

• Other wages during sickness and accident absences are deducted from the amount, for example wages from employers during sickness and accident absences, payments from the sickness fund, and so on. 

Permanent harm 

• Permanent harm is assessed when the applicant's state of health has become stable.  

• Compensation depends on the age of the applicant on the day of the injury. 

Permanent disability 

The amount of disability benefits is based on: 

• Age of the applicant 

• his annual salary before damage 

• percentage points of disability 

Information on the minimum and maximum amounts of benefits can be found in the schedule of sickness per diem payments under per diem benefits, accident compensation and mileage.