What is accident insurance (LAA)?
A ski fall, a bicycle accident, a finger caught in a machine: in Switzerland, if you are an employee, the financial consequences of an accident are not covered by your health insurance, but by the mandatory accident insurance governed by the LAA.
This insurance protects employees against the consequences of occupational accidents, non-occupational accidents and occupational diseases. It covers treatment costs, but also loss of income, which fundamentally distinguishes it from LAMal.
Is accident insurance mandatory in Switzerland?
Yes, for every employee in Switzerland. The employer must insure staff and report accidents to the insurer.
The scope of cover does however depend on working time:
With the same employer
Occupational accidents (AAP) and non-occupational accidents (AANP) are covered.
Limited cover
Only occupational accidents are covered. Accidents on the commute between home and work are treated as occupational. The rest falls under health insurance.
Employer and employee
Premiums for occupational accidents are paid by the employer. Premiums for non-occupational accidents are in principle paid by the employee and deducted from salary, unless the employer chooses to cover them.
No obligation
They are not subject to mandatory insurance. They can take out optional insurance under the LAA, or insure via LAMal or an ICA contract. The conditions differ significantly from mandatory insurance.
Certain sectors
Certain sectors (construction, industry, transport, in particular) must be insured with Suva. Other companies freely choose their insurer.
What exactly does it cover?
The three insured risks
Occupational accidents
Accidents occurring in the course of professional activity, including during breaks and on the company site.
Non-occupational accidents
Private-life accidents: sport, leisure, holidays, home.
Occupational diseases
Health impairments caused predominantly by harmful substances or certain work, according to the list established by the Federal Council.
The benefits
Treatment costs
The LAA covers all medical costs linked to the accident: consultations, hospitalisation in the general ward, medicines, physiotherapy, aids. Unlike LAMal, there is no deductible, co-payment or hospital contribution.
Daily allowance
It amounts to 80% of insured earnings and is paid from the third day following the accident. The two waiting days remain at the employer’s cost.
Disability pension
In the event of permanent disability of at least 10%, a pension is paid. It corresponds to 80% of insured earnings for total disability, reduced proportionally in the event of partial disability.
Integrity impairment indemnity
A capital sum paid in the event of a lasting and significant impairment of physical, mental or psychological integrity, independently of any loss of earnings.
Helplessness allowance
Paid when the insured person needs help from others for ordinary acts of daily life.
Survivors’ pensions
In the event of death, pensions are paid to the surviving spouse and children, within the limits set by law.
Example: a ski fracture
You break your leg while skiing. The LAA covers the operation, hospitalisation and rehabilitation without deductible, then pays you 80% of your salary during your inability to work.
All cash benefits are calculated on this amount per year. The portion of salary above this cap is not covered by mandatory insurance.
Supplementary accident insurance (LAAC)
The LAA guarantees solid protection, but deliberately uniform: the same rates, the same caps, the same conditions for all employees in the country. This uniformity is its strength, and also its limits.
Supplementary accident insurance, often called LAAC, fills these gaps. It never replaces mandatory insurance: it is added to it. It is optional and modular, which means the employer chooses the guarantees it wants to offer to all or part of its staff.
| Benefit | LAA: mandatory base | LAAC: as a supplement |
|---|---|---|
| Treatment costs | Covered at 100%, with no deductible or co-payment, general ward. | Private or semi-private ward, free choice of doctor. |
| Loss of earnings | 80% of insured earnings, from the 3rd day after the accident. | Top-up to 90 or 100% of salary. |
| Salary cap | Insured earnings limited to CHF 148,200 per year. | The portion of salary above the cap. |
| Disability | Pension from 10% disability, up to 80% of insured earnings. | Capital paid in addition to the pension. |
| Death | Survivors’ pensions to the spouse and children. | Death capital paid to relatives. |
| Rescue and transport | Rescue and transport costs, within the limits set by law. | Extended cover, repatriation from abroad. |
These guarantees are not part of mandatory insurance: they come under a separate contract, whose conditions vary from one insurer to another.
Common pitfalls
Thinking that LAA covers the full salary
The CHF 148,200 cap is the most costly trap for executives and high salaries.
Example: an annual salary of CHF 200,000.
- Without a supplement: allowance calculated on CHF 148,200, i.e. about CHF 325 per day.
- Actual salary: equivalent cover would represent about CHF 438 per day.
The gap therefore reaches about CHF 3,450 per month of incapacity, i.e. more than CHF 41,000 over a full year.
Forgetting the 8-hour threshold
An employee working less than 8 hours a week is not covered for non-occupational accidents. They must then keep accident cover with their health insurer. Conversely, an employee who reaches the threshold and forgets to suspend this cover pays twice for the same risk.
Ignoring the end of cover after leaving the company
LAA cover ends on the 31st day after the end of the right to salary. After that deadline, no accident protection remains active if nothing has been done.
A continuation insurance can extend cover, generally up to six months. It must be concluded before the deadline expires. Otherwise, accident cover must be reactivated with the health insurer.
Underestimating benefit reductions
Cash benefits may be reduced or even refused in the event of gross negligence or a hazardous undertaking. Treatment costs, however, remain covered.
Delaying the accident report
The report must be made without delay to the employer, who forwards it to the insurer. A late report makes it harder to establish the causal link and can delay payment of benefits.
We secure the obligation before optimisation
We analyse your activity, staff, working time, payroll, competent insurer and useful LAAC top-ups. You get a compliant structure, clear for employees and consistent with your HR policy.
Coordinate your people insurance
LAA must be thought through together with sickness salary cover, occupational pension and company liabilities.