Iceland Health
Patient Insurance
Information for professionals regarding patient insurance
What is patient insurance?
Patient insurance is a statutory insurance that healthcare professionals are required to have.
Patient insurance compensates for temporary or permanent physical and psychological harm to patients that occurs during treatment or medical examination.
Patient insurance also extends to the spouse and children of the patient if the patient dies as a result of an incident. In such cases, the insurance also covers the parents or guardians in the event of miscarriage, stillbirth, or the death of a child under the age of 18.
Patient insurance applies to damage that can be attributed to healthcare services. Damage resulting from a medical condition or accident, but not from the healthcare service itself, is not eligible for compensation under patient insurance.
Examples of incidents that may fall under patient insurance if they cause harm to the patient:
Inadequate treatment (errors or failure to provide the best possible care)
Rare and severe complications of treatment, such as infections
Accidents during examination or treatment
Defects in equipment or instruments
Damage caused by incorrect use of medication
Where and when the insurance is valid
Patient insurance covers healthcare services provided in Iceland.
Patient insurance with Iceland Health applies to incidents occurring in private healthcare services from 2025 onwards. Prior to that, the insurance was provided by insurance companies.
Patient insurance for healthcare services in public institutions has been managed by Iceland Health since 2001.
Who is obligated to pay premium?
All healthcare professionals who work independently are required to pay a premium for patient insurance. An employer in independent practice must insure their employees. Contractors generally insure themselves.
What does an independent healthcare professional need to do in order to obtain patient insurance?
Individuals who work independently must be registered in the operator register of the Directorate of Health.
Those who are registered in the operator register of the Directorate of Health must log in to Iceland Health (Login) using their own identification number with electronic credentials.
When accessing the data gateway, "Patient Insurance" is selected on the sidebar. This then leads to an interface for registration, where detailed instructions for registration can be found.
If the interface does not appear, it is likely that the healthcare professional does not have a valid registration in the operator registry of the Directorate of Health. In that case, a request for the correct registration must be made (see Health Services Operations | Ísland.is)
Once the operational registration is completed, it is possible to enter information regarding patient insurance into the data gateway.
If a healthcare professional is on the operator registry of the Director of Health but cannot access the interface for registration, it is necessary to contact the Health Insurance here: Iceland Health.
How do I terminate a patient insurance policy?
Patient insurance cannot be terminated if healthcare services are being provided in an independent practice. This is because patient insurance is a mandatory insurance under the law.
If an independent operation is discontinued, it must be reported to the Directorate of Health. Iceland Health will receive information about the cancellation of the business registration, and the patient insurance will also terminate accordingly.
If it concerns leave from work due to illness or parental leave, it must be reported on Iceland Health Gateway, following the same steps.
Premium for patient insurance
The amount of the premium for patient insurance is determined by a regulation issued by the Minister of Health and implemented by Iceland Health.
The regulations on contributions can be accessed here.
Implementation of Patient Insurance at Iceland Health
Iceland Health manages data collection in patient insurance. Healthcare professionals are required to provide the data requested by the institution that it deems relevant to the handling of the case, cf. Article 10 of Act No. 47/2024. No payment is made for the provision of such data.
If an incident of damage is reported, the insured healthcare professional is given the opportunity to present their views through a statement from the treating party. Iceland Health makes an independent decision in cases in its capacity as an administrative authority. The insured is not a party to the case and therefore does not otherwise participate in the proceedings and has no right of appeal. The patient can appeal the decision of Iceland Health to the Welfare Appeals Board. Proceedings before Iceland Health and the Appeals Board are free of charge for the applicant. Costs for legal assistance for the patient are not covered, should they choose to seek it.
Following data collection, an opinion is usually obtained from an independent specialist doctor, and the cases are reviewed by the institution's doctors and lawyers, who assess liability for compensation. The specialist doctor's opinion should generally be supported by references. Once a decision has been made, the insured healthcare professional is provided with information on the outcome of the case.
Compensation to a patient due to patient insurance
Information about patient insurance compensation can be found on the applicants' information page.
A healthcare professional or institution does not pay its own liability even if a claim is settled. The premium is the only payment made.
Healthcare professionals are required to inform and guide users of health services and their relatives about patient insurance, in accordance with the Act on Patient Insurance, No. 47/2024.
In cases where the following may apply, healthcare professionals are obliged to inform about patient insurance:
If damage occurs due to treatment or examinations that could reasonably have been avoided if the treatment had been conducted as well as possible and in accordance with the knowledge and experience in the relevant field. Note that the insurance not only covers mistakes, but the right to compensation is broader than that. Thus, a notification concerning patient insurance does not necessarily imply an acknowledgment that a mistake has occurred.
If damage occurs as a result of defects in devices, instruments, or equipment used in research or medical treatment.
If damage results from treatment or examination and the damage is due to an infection or other complication of the treatment. The complication must be both rare and serious for the insurance to apply.
If a patient is injured during a study or treatment due to an accident, e.g., a fall.
Damage resulting from the properties of medications generally does not fall under patient insurance. However, with the following exceptions:
The medicine is prescribed incorrectly and damage results from it.
If damage occurs as a result of vaccination with a vaccine recommended by health authorities, due to harm caused by the properties of the vaccine or its improper handling.
If damage arises from the use of a drug that is not in accordance with approved indications, or from the use of a drug that has not obtained marketing authorization, when its use is requested or required by health authorities.
In cases where any of the above may apply, healthcare professionals are obliged to inform healthcare service users and their relatives about the possible right to compensation under patient insurance and to advise them of the option to submit an application for compensation under patient insurance to Iceland Health.
It is important to bear in mind that patient insurance covers damage that can be attributed to healthcare services. Damage resulting from a medical condition or accident, but not caused by healthcare services, cannot be compensated under patient insurance.