Updated on
11/07/2025
Bonus Malus (in Accident Insurance)
What is the ‘bonus malus’ system? – ‘Bonus malus’ in the context of accident insurance refers to a system used to adjust insurance premiums based on the claims history or safety record of the policyholder or company. In Luxembourg, this system is often applied to occupational accident insurance, where businesses or individuals with fewer accidents or claims (bonus) may enjoy reduced premiums, while those with a higher number of accidents (malus) may face increased premiums.
What is the bonus malus system in accident insurance? - The bonus malus system in accident insurance adjusts the insurance premium based on the policyholder's accident or claims history. If a business or individual has a good safety record, they receive a ‘bonus,’ resulting in lower premiums. If they have a poor safety record with many claims, they receive a ‘malus,’ leading to higher premiums.
Who does the bonus malus system apply to? - The system typically applies to employers and businesses who purchase occupational accident insurance for their employees. The premium adjustments are based on the company’s safety record over a set period.
How can a business reduce its malus? - Companies can reduce their malus by implementing strong workplace safety policies, offering employee training on accident prevention, and maintaining a good safety record to avoid frequent claims. Over time, a reduced accident rate can result in lower premiums.
How are workplace accidents reported? - Employers must report all workplace accidents to the Association d'Assurance Accident (AAA). The frequency and severity of these accidents can influence the company's bonus malus rating, potentially leading to premium adjustments in their accident insurance.
What are the different risk class categories? - Each contributor is assigned a risk class based on its main activity and must provide the Centre commun de la sécurité sociale (CCSS) with the information needed to assign them to a risk category when they join. They must also notify the CCSS immediately of any change in the activity carried out that could lead to a different classification.
The risk categories are as follows:
- Class 01 : Trading
- Class 02 : Cleaning and domestic activities
- Class 03 : Hotels, restaurants, cafés
- Class 04: Education, recreational, sporting, cultural and religious activities
- Class 05: Health and social work, personal services
- Class 06: Insurance and financial services, real estate and information technology services, architectural and engineering activities, information technology and media activities
- Class 07: Industrial activities
- Major group 08 : Metal and wood-working, manufacture of artificial products, manufacture, installation, repair and maintenance of machinery, equipment and vehicles, precision engineering.
- Class 09: Construction, roofing, mining and quarrying.
- Class 10: Renovation and extension, building services
- Class 11 : Land transport, shipping and air transport, logistics and storage, postal, courier and express services
- Class 12: Part-time and temporary work
- Class 13: Manufacture of food products
- Class 14: Agriculture, viniculture, horticulture, forestry and related activities
- Major group 15 : Professions, self-employed business and craft activities
- Class 16: Local government
- Class 17: Government
Synonyms: Claims history rating, risk-adjusted premium, safety-based premium adjustment
Other useful words to check out
Unjustified absence (absence injustifiée)
Special Leave (Leave for Personal Reasons)
Tax (Impôt)
Tax class (classe d’impôt)
Special Leave (Leave for Personal Reasons)
Tax (Impôt)
Tax class (classe d’impôt)