The Social Security Act - 3

Social Security under this Act comprehends
1. Pension insurance
2. Occupational injury insurance
3. Health insurance

The State Social Security Institute (SSI) is charged with the administration of pension insurance, occupational injury insurance and health insurance. The Ministry of Health and Social Security is responsible for the supervision of all activities of the SSI.
Each branch of insurance listed in Article 1 constitutes an independent department within the SSI, having its separate finances. No department shall be liable for the obligations of another. In other respects the Director may, subject to the approval of the Social Security Board (SSB) and the Minister, organise the activities of the SSI into departments as may be considered appropriate.
The SSI shall have its headquarters and venue in Reykjavík.

Upon having received the proposals of the SSB, the Minister shall appoint the Director of the SSI for a term of five years and employ the Chief Medical Officer. The Director shall appoint other staff.
The determination of salaries for the permanent staff under this Act shall be governed by the provisions of the Act on Collective Bargaining Contracts for Civil Servants.

The Director shall be responsible for the administration of the SSI pursuant to this Act and subsequent regulations.
Heads of Departments are responsible for routine administrative matters, each in his own department. Any innovation or departure from routine practice shall be referred to the Director.
A dentist may be employed or an agreement reached with parties outside the SSI to supervise the enforcement of the provisions of this Act relating to dentistry.

The Althing shall at its first sitting following each general election elect five persons to the SSB as well as five alternates. The Minister shall appoint the Chairman and Vice-Chairman of the SSB from among the principal members elected.
The Minister shall decide on the remuneration paid to members of the SSB.

The SSB shall supervise the finances, operation and activities of the SSI and ensure that it functions in compliance with current laws and regulations. An auditing department shall function within the SSI under the supervision of the SSB.

In the event of disputes arising with respect to the basis, conditions, or amount of benefits under this Act a ruling shall be made by an independent committee, the Social Security Ruling Committee.
The Minister shall appoint three members to the committee as well as three alternates for a term of six years. The Supreme Court shall designate two members. One member shall fulfil conditions for the office of district judges and preside as chairman of the Committee whilst the other shall be appointed from the medical profession and be vice-chairman. One member of the Committee shall be appointed without designation. Alternates shall be designated in the same manner and meet the same requirements as members.
Reappointment of Committee members is permitted.

Any complaint to the Social Security Ruling Committee should be in writing and be made within three months after notifying the decision to the party to the case. Forms for this purpose shall be available at the SSI and it's agencies where staff shall provide necessary assistance for the completion of the forms.
The SSI shall provide the Committee with all documents of the case in addition to any information or explanation that the Committee may require from the institution.
The Committee may appoint staff for the preparation of resolutions to cases and for general administration pursuant to the decision of the Althing in the current State Budget.
The Committee may seek the counsel and assistance of persons with expert knowledge if necessary in its opinion. Such persons shall co-operate with the Committee on the preparation and processing of a case in accordance with the Chairman's decision.
The members, staff, and consultants of the Committee are forbidden under provisions of penal code on misconduct in public office to communicate to third parties any personal information that they might be informed of via their services and should be kept in confidence. The confidentiality shall remain in effect after retirement.
The Committee shall turn a ruling as soon as possible and no later than two months after receiving a case.
The Chairman presides over the activities of the Committee. Should the Committee members disagree, the conclusion of a case shall be decided by majority vote.
The Committee's processing of cases should otherwise comply with the provisions of administrative law.

The Social Security Ruling Committee is independent in its work and its rulings shall not be appealed to other authorities.
Should a party to a case so require, the Committee may decide to postpone the legal effect of the ruling if necessary in its opinion. An application to this effect should be made no later than 10 days immediately following the publication of the ruling. A postponement of the legal effect of the ruling is subject to the condition that the complainant submits the case to the courts within 30 days from the postponement ruling and simultaneously requests accelerated proceedings. Postponement of the legal effect of the ruling is void if legal proceedings are not instigated within 30 days. If legal proceedings are instigated because of the Committee's ruling, the Committee is authorised to postpone its processing of comparable cases until a judgement has been passed in the case.
The SSB can instigate legal proceedings in order to reverse the ruling of the Social Security Ruling Committee. The Committee shall issue its major rulings in an accessible and organised manner. The rulings shall be issued without names, identification numbers, or other data which can be personalised.
The Minister shall decide upon the remuneration of the Committee members. Expenses of the Committee are paid from the State Treasury.

The headquarters of the SSI shall be in Reykjavík.
Outside Reykjavík the SSI shall have agencies, their location, organisation and administration to be determined by the SSB.
In communities where there is no agency of the SSI the local authorities may, in consultation with the SSB, appoint a special representative of the SSI to provide information and serve as a contact between members of the community and an agency. The SSI shall determine and pay the remuneration due to the special representative.

The annual accounts of the SSI shall as a rule be finalised no later than 1 July of the following year. They shall be audited in the same manner as the accounts of other state institutions.
Following auditing and approval by the SSB, accounts shall be sent to the Ministry of Health and Social Security which in turn shall have it published in Section B of the Law and Ministerial Gazette.
The SSI shall regularly publish full information on all its activities.
The SSI shall through promotional activities inform the public of its rights to benefits.

A person who is resident in Iceland is considered insured, subject to Article 24, however, if other conditions of the Act are fulfilled, subject to the provisions of existing international agreements.
Residence, in Paragraph 1, refers to legal residence as understood in the Act on Legal Residence.
The SSI shall determine whether an individual is regarded as insured in Iceland under the Act. Appeals are subject to Articles 7 to 7b.

The SSI may decide, on application, that a person insured under the Act will continue to be insured even if he does not meet the conditions of Article 9a if he is working abroad for a party whose residence and operation are in Iceland and a pay-roll tax, cf. the Pay-roll Tax Act, is paid in Iceland from the person's salary. The same applies to the person's spouse and children under the age of 18 living with the person.
Applications for insurance pursuant to this Article should be received by the SSI no later than four weeks before the applicant departs from Iceland.

The SSI may decide on application that an individual insured under the Act will continue to be insured, subject to Article 24, for up to one year after leaving Iceland even if the person does not meet the conditions of Article 9a or Article 9b, subject to the provisions of existing international agreements. This is subject to the condition that the person in question has been permanently and continuously resident in Iceland for at least five years prior to leaving the country and the purpose of going abroad is not to seek medical assistance.
Under this Article, applications for insurance should be received by the SSI no later than four weeks before the applicant departs from Iceland.

The Minister issues a regulation which further details the implementation of this Chapter, including the SSI's registration of the insurance rights of individuals and the definition of recognised study abroad.

Pension insurance shall comprise old age pension, invalidity pension, pension supplement additional pension supplement, invalidity allowances and child pension.
Unless otherwise indicated, income pursuant to Chapter II of this Act shall include income pursuant to Chapter II of Act No. 75/1981 on income tax and property tax, net of income pursuant to Sub-paragraph A, Paragraph 1, Article 30 of the same Act. On determining the income base, income pursuant to Point 3 of Sub-paragraph C, Article 7 of Act No. 75/1981 on income tax and property tax shall be assessed at 50 per cent and the income of invalidity pensioners from employment shall be assessed at 60% in the calculation of pension supplement. .
In the calculation of invalidity pension and income supplements, cf. Article 12 and Article 17 of this Act, the Minister is authorised to raise the income guideline of pensioners who have received a lump sum payment of damages for disability net of the estimated invalidity pension and income supplement for the future from the SSI.
The Minister issues a regulation which further details the implementation of this provision.

Persons 67 years of age or older who have been resident in Iceland, cf. Chapter IA, for at least 3 calendar years between the ages of 16 and 67 are entitled to an old age pension. Subject to Paragraph 2 below, a full annual old age pension of ISK 188,736 shall be paid to individuals who have been resident in Iceland, cf. Chapter IA, for at least 40 calendar years between the ages of 16 and 67. In cases of shorter periods, the old age pension shall be payable in proportion to the period of residence. However, in the case of married couples where both partners are pensioners, the income of both may be based on the time of residence of the partner possessing the longer entitlement period.
The old age pension shall be reduced if the annual income of individuals or individual partners of a marriage are higher than ISK 853,397. If the income is above the said maximum the old age pension shall be reduced by 30% of the surplus income up to the point where it lapses entirely. Income in this respect shall not include social security benefits, income from pension funds, benefits under the Social Assistance Act, or housing benefits pursuant to Act No. 100/1994. Reduction under this Paragraph shall not affect the part of the old age pension an individual is entitled to due to deferment of receiving an old age pension decided prior to 1 January 1992.
Persons who have been seamen for 25 years or longer shall be entitled to an old age pension from the age of 60 provided that all other conditions of this Article are met. The seaman shall be entitled to an old age pension if he has been registered on an Icelandic vessel or a vessel operated by Icelandic nationals no fewer than 180 days a year on the average over 25 years. The implementation of this provision shall be further detailed in a regulation to be issued.
If a seaman has worked for 25 years or longer in part or exclusively on an open vessel or a decked vessel under 12 gross tons or if he has for other reasons been exempted from registering as crew he may be granted an old age pension from the age of 60 provided it can be established that seamanship was his main occupation during his years as a seaman.

Persons resident in Iceland in accordance with Chapter IA are entitled to an invalidity pension if they are between the ages of 16 and 67, and
(a) have been resident in Iceland for at least the three years immediately prior to application or for six months if their working capacity was unimpaired when they took up residence in Iceland;
(b) have had their permanent disability assessed at 75% as a result of a medically recognised disease or invalidity.
The Chief Medical Officer shall assess the degree of invalidity of applicants for invalidity benefits in accordance to a standard established by the Medical Department of the SSI based on the consequences of medically recognised diseases or invalidity. The standard shall be approved by the SSB and published in a regulation issued by the Minister of Health and Social Security. The Chief Medical Officer is authorised to establish the condition that an applicant undergoes a special assessment of his prospects of rehabilitation and an appropriate rehabilitation program before a disability assessment is made, cf. Article 8 of the Social Assistance Act.
The SSI is authorised to negotiate on the cost of health insurance in relation to the assessment of the prospects of rehabilitation.
The full annual invalidity pension shall be ISK 147,948 and shall be payable in accordance with the same rules as old age pension, subject to Paragraph 4. When determining the period of residence, cf. Paragraph 1, Article 11, the period until the applicant reaches the age of 67 shall be taken into account.
The invalidity pension shall be reduced if the annual income of individuals or individual partners of a marriage who are both invalidity pensioners are higher than ISK 871,373. If the income is above the said maximum the invalidity pension shall be reduced by 25% of the surplus income up to the point where it lapses entirely. Income in this respect shall not include social security benefits, income from pension funds, benefits under the Social Assistance Act, or housing benefits under Act No. 100/1994.
The SSI shall issue an invalidity certificate for those who are assessed as at least 75% disabled.

The SSI may pay an invalidity allowance to persons who have lost at least one half of their working capacity and fulfil the conditions set forth in Paragraph 1 of Article 12 in all respects other than those relating to the degree of invalidity. The recipient of an invalidity allowance who has reached the age of 62 shall receive an invalidity allowance amounting to a full invalidity pension (the basic pension excluding associated benefits). An invalidity allowance may also be paid to a person who is fully employed but has to meet considerable extra expenses on account of his invalidity. The SSB issues rules on invalidity allowances to be confirmed by the Minister.

A child pension shall be paid in respect of children under 18 years of age either of whose parents is deceased or is an invalidity pensioner, provided that the child itself or either of its parents has been resident in Iceland for at least three years immediately prior to application. If both parents are deceased or are invalidity pensioners the child pension shall be double. Neither the provisions for reduction in Paragraph 2 of Article 11 nor those of Paragraph 5 of Article 12 shall limit the right to child pension.
Adopted children and step-children enjoy the same legal status in the same circumstances. A child pension shall not, however, be paid on account of the death or invalidity of a step-parent if the child's parent responsible for its maintenance is alive.
The SSB may decide to pay a child pension for the child of an old age pensioner or of a person who has been detained or imprisoned for at least three months.
The Pension Department of the SSI shall pay child pension when it is sufficiently documented that the identity of the child's father cannot be ascertained.
A child pension shall be paid to the children's parents if they are maintained by them or to any other persons who wholly maintain them.
The annual pension in respect of each child shall be ISK 123,600. A child pension shall not be paid for children who receive an invalidity pension.

If the income of a single person receiving old age pension does not exceed ISK 241,344 per annum he shall in addition to his pension be paid a pension supplement in the amount of ISK 347,244 per annum. If, on the other hand, the pensioner has an income greater than ISK 241,344 per annum the supplement shall be reduced by the equivalent of 45% of the surplus income.
In the case of a couple where only one party receives an old age pension and the joint income does not exceed ISK 724,032 per annum a pension supplement in the amount of ISK 347,244 per annum shall be paid in addition to the old age pension. If, on the other hand, the joint income of a couple exceeds ISK 724,032 per annum the supplement shall be reduced by the equivalent of 45% of the surplus income. Notwithstanding the provisions of clause 2, if 2/3 of the income of the spouse receiving old-age pension corresponds to an amount lower than ISK 300,000, the amount of pension supplement paid shall never be lower than the amount required for 2/3 of the income to reach that amount.
In the case of a couple where both parties receive an old age pension and the joint income does not exceed ISK 482,688 per annum a pension supplement amounting to double the amount of a single person's pension supplement shall be paid. If, on the other hand, the joint income of a couple exceeds ISK 482,688 per annum the supplement shall be reduced by the equivalent of 45% of the surplus income. Notwithstanding the provisions of clause 2, if 2/3 of the income of either spouse corresponds to an amount lower than ISK 300,000, the amount of pension supplement paid shall never be lower than the amount required for 2/3 of the income to reach that amount.
If the income of a single person receiving invalidity pension does not exceed ISK 362,016 per annum he shall be paid a pension supplement in the amount of ISK 356,965 per annum in addition to the pension. If, on the other hand, the pensioner has an income greater than ISK 362,016 per annum the supplement shall be reduced by the equivalent of 45% of the surplus income.
In the case of a couple where only one party receives an invalidity pension and the joint income of the couple does not exceed ISK 1,086,048 per annum a pension supplement in the amount of ISK 356,965 per annum shall be paid in addition to the invalidity pension. If, on the other hand, the joint income of a couple exceeds ISK 1,086,048 per annum the supplement shall be reduced by the equivalent of 45% of the surplus income. If two-thirds of the income of the spouse receiving an invalidity pension amount to less than ISK 300,000 per annum, then that spouse shall, notwithstanding the provisions of Clause 2, not be paid a lower pension supplement than the amount required to ensure that two-thirds of his/her income equals the said amount.
In the case of couple where both parties receive an invalidity pension and the joint income does not exceed ISK 724,032 per annum a pension supplement amounting to double the amount of a single person's pension supplement shall be paid. If, on the other hand, the joint income of a couple exceeds ISK 724,032 per annum the supplement shall be reduced by the equivalent of 45% of the surplus income. If two-thirds of the income of either spouse amount to less than ISK 300,000 per annum, then that spouse shall, notwithstanding the provisions of Clause 2, not be paid a lower pension supplement than the amount required to ensure that two-thirds of his/her income equals the said amount.
In the case of a couple where both parties receive pensions, one an invalidity pension and the other an old age pension, the same income guideline shall apply as in the case of single pensioners in the relevant pension category and the income of each party shall be estimated to be half of the joint income. Notwithstanding the provisions of clause 1, if 2/3 of the income of either spouse corresponds to an amount lower than ISK 300,000, the amount of pension supplement paid shall never be lower than the amount required for 2/3 of the income to reach that amount.
If a single person derives his sole income from pension insurance, he/she shall, in addition to the household supplement under the Social Assistance Act, be entitled to a full additional pension supplement, which amounts to ISK 14,062 per month. If the pensioner has other income, as defined in Article 10, cf. Paragraph 11, such income shall curtail the additional pension supplement by 67%.
A pensioner in co-habitation with an individual 18 years of age or older shall be entitled to an additional income supplement, ISK 10,548. The income of a pensioner, as defined in Article 10, cf. Paragraph 11, shall curtail the additional pension supplement by 67%, and the calculation of the additional pension supplement of married couples shall be based on half of the joint income.
Co-habitation in Paragraph 9 refers to marriage, unwed co-habitation and registered partnership, or when a pensioner derives a financial advantage from co-habitation with other unrelated parties, relatives by blood or marriage, or shares facilities as regards meals or housing.
Social security benefits, benefits under the Social Assistance Act, housing benefits, and assistance from local authorities are not included under this provision as income guidelines.
In the event that a person does not fulfil his legal obligation to contribute to a pension fund pursuant to the Pension Act No. 129/1997. It is permissible to estimate the person's income as basis for deduction of pension supplement payment. A regulation shall be issued with provisions further detailing the implementation of this deduction.
The provisions of Article 11 apply to pension supplement under this article, as applicable.

For the purposes of determining increases in benefits under Article 17, applications must be supported, e.g. by tax returns and clear information as to the circumstances of the pensioner. Consideration shall be given to whether the assets of the pensioner have been disposed of in such a manner as to preclude the granting of an increase.
The Minister of Health and Social Security may decide through regulation that income figures other than those stipulated in Article 17 shall apply to pension from pension funds and income under Point 3, Sub-paragraph C, Article 7 of Act No. 75/1981 on income tax and property tax than to other income.

The cost of Social Security Pension Insurance shall be borne by the State Treasury through revenues generated, i.a. by the pay-roll tax.

Each year the SSI shall prepare an estimate of the cost of pension insurance for the following calendar year in accordance with rules on preparation of the State Budget and sent to the Ministry of Health and Social Security for further processing. In addition to the estimated costs, provision may be made for an allocation up to 2% of the estimated cost to a reserve fund in accordance with Chapters II and III of this Act.
The total annual expenditures of pension insurance shall be in accordance with the decision of the Althing in the State Budget Act and Supplementary Budget Act each year.

The contribution of the State Treasury to pension insurance under Articles 19 and 20 shall be paid to the SSI in equal monthly instalments at the beginning of each month.

Occupational injury insurance covers accidents in the course of work, apprenticeship, rescue work as well as all forms of athletic training, exhibitions and competition, provided that the injured person is insured under Article 24 or 25.
A person is regarded as being at work
(a) when he is on the work premises at a time when he is meant to be working as well as during meal and coffee breaks, and
(b) on errands on behalf of the enterprise or when he is on necessary journeys to and from work, provided such journeys take place in the course of the same day between his place of work and his home or the place where he takes his meals. The same shall apply to longer journeys of this kind, if the employee is being paid by his employer during the journey.
An injury is not regarded as having occurred in the course of work if it is caused by actions of the injured person which are in no way related to his work. The insurance, however, covers any injury to a seaman aboard his vessel, or when he and his vessel are away from the vessel's home port or place from which the vessel is operated.
Injuries include diseases caused by the noxious effects of substances, radiation or similar conditions which prevail at most for a few days and which must be attributed to the employment.
A regulation shall prescribe which occupational diseases give rise to benefits under this Chapter.

On the occurrence of an accident which may be considered as giving rise to benefits under this Chapter, the employer, or, in absence of an employer, the insured person, shall immediately report the injury to the Chief of Police or his representative (in Reykjavík to the SSI) in the form prescribed by the SSI. The Chief of Police shall forward the report to the SSI together with all necessary information. The injured person or such other persons as may wish to claim benefits on account of the injury shall ensure that the obligation to report the injury is fulfilled and such parties may seek the assistance of the Chief of Police if the employer fails to report. If incidents leading to the accident are unclear, or if matters are not sufficiently clarified or if there are grounds for suspicion that the accident was caused through negligence or deficient equipment or if the SSI or either of the parties concerned, i.e. the employer or the injured person or his representative so request, the Chief of Police shall investigate the case.
Failure to report the injury by the person whose duty it is to do so shall not debar the injured person or his surviving relatives from claiming benefits if this is done within one year from the accident. However, benefits may be paid pursuant to further rules issued by the SSB even when more than one year has elapsed since an accident occurred if the circumstances are so clear that such a delay does not obstruct the collection of evidence relevant to the case.

Insured against occupational injury under this Chapter are the following:
(a) employed persons working in Iceland, with the exception of foreign nationals who hold official positions with foreign States and the foreign staff of such officials. Work aboard an Icelandic vessel or aircraft or a vessel or aircraft owned or operated by an Icelandic party is equivalent to work in Iceland under this Sub-paragraph if salaries are paid in Iceland;
(b) apprentices as defined by the Industrial Apprenticeship Act;
(c) ship-owners who are themselves members of the ship's crew;
(d) persons engaged in the rescue of people in mortal danger or in the prevention of imminent extensive damage to property;
(e) athletes who have reached the age of 16 taking part in athletic activities, whether training, exhibitions or competition. The scope of this provision may be determined in detail in a regulation;
(f) patients receiving treatment at medical institutions operating under the Act on Health Services when the loss of health or the disability is a result of medical treatment or errors committed by personnel employed at these institutions.
An exemption may be granted from occupational injury insurance under Paragraph 1(a) in accordance with detailed rules issued by the SSB if the party concerned can be proved to be covered by foreign occupational injury insurance legislation.
Any person who works for remuneration and is not himself an employer in that respect shall be considered an employed person whether paid in the form of hourly wages, fixed salary, share of fishing catch or payment for piecework.
Casual work not connected with any enterprise and not involving any particular risk is excluded from occupational injury insurance coverage under this Article. A regulation shall be issued prescribing in more detail what shall be considered casual work in this connection.
The spouse of an employer and his children under 16 years of age shall not be considered employed persons under this Article.

The following persons shall be insured against occupational injury under this Act unless they state in their tax return at the beginning of the year that they do not desire such insurance:
(a) agricultural employers engaged in agricultural work as well as their spouses and children 12 to 16 years of age;
(b) employers who are self-employed in other occupations;
(c) employed persons regularly engaged in work falling under Paragraph 4, Article 24.
Those engaged in household work may ensure their entitlement to occupational injury benefits with respect to such work by making a request to such effect on their tax returns at the beginning of each year. In the same manner, employers under Sub-paragraph (b) may ensure entitlement to occupational injury benefits for their spouses and children under 16 years of age who work with them in the enterprise. The same shall apply with respect to an agricultural employer's children under 12 years of age.

Occupational injury insurance benefits comprise medical assistance, per diem benefits, invalidity benefits and death grants.

If an occupational injury giving rise to benefits results in sickness and loss of working capacity for ten days or more, the necessary costs of treatment of the injured person and costs rising out of damage to artificial limbs or prosthetic aids shall be paid in accordance with the following:
1. The following shall be paid in full:
(a) medical assistance in accordance with agreements on health insurance;
(b) hospitalisation for as long as the consequences of the accident require. The payment for hospitalisation shall, however, become the responsibility of health insurance when the injured person has reached the age of 70, provided two full years have passed since the date of the accident;
(c) medicine and dressings;
(d) the repair of broken or damaged teeth which were healthy or in good repair. The payment for similar repair of teeth in worse condition may be limited to the cost which would have been incurred had the teeth been healthy;
(e) artificial limbs or similar prosthetic aids as well as their repair or replacement if repair is not considered sufficient. The same applies to false teeth;
(f) transport of the injured by aircraft or ambulance immediately following the accident or whenever it proves otherwise necessary to send a patient by such conveyances for treatment by a physician or in a hospital, though not for individual journeys in the course of regular treatment. The same shall apply to transport by ship when no other means of transport can be used;
(g) physical therapy and rehabilitation treatment.
2. The following shall be paid in part:
(a) one half of the cost of travel by taxi to a physician, provided the patient is unable to travel by scheduled coach or bus. Transport in an automobile belonging to a person of the same household or farm or to relatives of the injured person shall not, however, be paid for;
(b) three quarters of the cost of similar travel by scheduled coach or ship, provided a distance of more than 15 km is involved. If a patient cannot travel by scheduled coach, up to three quarters of the cost of travel by scheduled aircraft shall be paid for.
3. Payment may be made for the following:
(a) nursing care provided in the home by non-relatives;
(b) a grant towards the costs resulting from damage to teeth which have been repaired at considerable expense, such repairs having been spoiled by the accident;
(c) three quarters of the cost of travel by scheduled coach or bus, or payment by kilometre in the absence of such coach or bus service, if the patient requires repeated treatment by a physician or in a hospital or medical institution, e.g. during rehabilitation treatment or physical therapy, with or without hospitalisation, even when the distance travelled is less than 15 km, provided more than 30 trips are involved in a six month period.
The SSB shall establish rules on reimbursement in whole or in part for medical assistance that special agreements on health insurance in accordance with above-mentioned do not cover.
If an injury does not cause inability to work for 10 days but nonetheless gives rise to expenses referred to in this Article, such expenses may be paid to the extent that they are not paid through health insurance.

Per diem benefits shall be payable as from and including the eighth day following an injury, provided the injured person has been unable to work for at least 10 days. Per diem benefits shall be paid until the injured person is able to work, is adjudged to be permanently disabled or until death, but in no case for more than 52 weeks.
The SSB may decide that a per diem benefit be paid for a longer period, particularly where medical attempts at cure have not been exhausted and where it is uncertain whether disability will be permanent and may possibly be prevented or reduced by extending the period of payment.
The per diem benefit are ISK 665.70 for each individual and ISK 142.80 for each child maintained, including children outside the home for whom it can be proved that the injured person pays maintenance pursuant to a maintenance decree, a certified agreement or a divorce permit.
Payments under this Article shall not exceed three quarters of the beneficiary's earnings from his work at the time of his injury and shall not, together with his earnings, exceed the amount of per diem benefits plus one third. A regulation shall prescribe the method of assessing in this respect the earnings of an employer's spouse and children insured under Sub-paragraph 1(a) or Paragraph 2, Article 25.
If an employer pays wages to the injured person while he is absent from work on account of his injury, the per diem benefits under this Article shall be made to the employer for the relevant period up to an amount equal to three quarters of the wages.

If an injury results in permanent disability, the victim shall be paid an invalidity pension under the rules in Paragraph 4, Article 12, or a lump sum invalidity benefit.
If the degree of disability is 50% or more, one half of the invalidity pension shall be paid for 50% disability, increasing by 2% for each additional degree of disability up to a level of 75% disability, at which level the full pension shall be paid. Provisions on reduction under Paragraph 5, Article 12., do not apply to invalidity pension under this Article.
Where the degree of disability is assessed to be greater than 50% the invalidity pension shall, under the rules of Sub-paragraphs (b) and (c), Paragraph 1 of Article 30 be supplemented by a pension in respect of the spouse and for children under 18 years of age maintained by the beneficiary at the time of the injury.
If the disability is 75% or more, full benefits shall be paid and this applies both to children maintained by the beneficiary at the time of the accident and to children maintained by him later. If the loss of capacity is less than 75%, the benefits shall be reduced by 4% for each 1% under 75% disability.
If the loss of capacity is less than 50%, the SSI may pay a lump sum invalidity benefit equivalent to a pension for the person concerned for a given number of years according to rules issued by the Ministry on the recommendation of the SSB. A pension shall otherwise be paid in proportion to the degree of invalidity.
An invalidity benefit shall not be paid if the loss of capacity is assessed to be less than 10%. In such cases, however, benefits in respect of Sub-paragraph (f), Paragraph 1, Article 24, may be awarded in accordance with the relevant regulations established by the Ministry.

If an injury results in death within two years from its occurrence, death grants shall be paid as follows:
(a) a widow or widower who lived with the deceased or was maintained by him or her shall receive a grant amounting to ISK 15,448 per month for eight years from the day of death of the deceased. Grants payable under this Sub-paragraph shall not lapse if the widow or widower remarries. If a widow or widower who has received a grant under this Sub-paragraph dies before the grant has been paid in full, the amounts outstanding shall be paid pursuant to the same rules up to the end of the period specified above in equal shares to the surviving children of the deceased, if any, or to his estate;
(b) a child pension of ISK 123,600 per annum shall be paid for each child, cf. in other respects Article 14;
(c) a child over 16, who, owing to disability, was maintained by the deceased when the injury occurred, shall receive a benefit of not less than ISK 193,055 and up to ISK 579,165 depending on the extent to which it was supported by the deceased at the time of his or her death. No benefit shall be paid, however, if the degree of disability is less than 33%.
Benefits under Sub-paragraphs (a) and (c) above shall be not less than ISK 270,281 for each accident. If the deceased does not leave any heirs who are entitled to benefits under the above Sub-paragraphs, compensation in the amount of ISK 270,281 shall be paid in respect of the injury, in equal shares, to the surviving children of the deceased, if any, otherwise to his estate.
Provisions applying to children and parents shall also apply to foster children and foster parents.
Any lump sum invalidity benefit paid under Paragraph 4, Article 29 in respect of the same injury, shall be deducted from the death grant payable to the relatives of the deceased.

The cost of occupational injury insurance shall be covered by state revenues generated through collection of pay-roll tax. Employed persons under Sub-paragraph (c), Article 25 shall be responsible for the payment of their premiums. An annual contribution to meet the cost of benefits with respect to parties mentioned in Sub-paragraphs (e) and (f), Article 24 shall be allocated in the State Budget.
The SSI shall each year prepare an estimate of benefit payments and administrative costs of occupational injury insurance for the following calendar year, including an allocation to a reserve fund of up to 5% of costs.
A regulation shall be issued determining a fixed annual premium in respect of small fishing vessels and major power-driven machinery for domestic use.
Premiums for occupational injury insurance other than those listed in Paragraphs 1 and 3 shall be determined as a percentage of a reasonably estimated base for each individual.
On determining insurance premiums for the SSI Occupational Injuries Department payment of seamen's wages or fish catch share, cf. Article 63, operating costs of the Occupational Injury Insurance Department and contributions to the reserve fund shall be taken into account, sf. Paragraph 2. This premium shall be established annually by regulation.

Persons who have been resident in Iceland for six months, cf. Chapter IA, shall be regarded as having health insurance coverage, subject to the provisions of existing international agreements. Necessary service in the case of illness emergencies may be paid even when the stipulated waiting period has not elapsed.
Children and adolescents under the age of 16 are covered for health insurance with their parents. The same applies to step-children and foster children.
The Health Insurance Department or its agency shall issue an entitlement certificate to all insured persons.
The Minister may issue a regulation on the arrangement and implementation of health insurance, the activities of the Health Insurance Department, and exemptions from the mandatory six-month period of residence, and it's administration.

The role of the Health Insurance Department of the SSI is to administer health insurance pursuant to this Act. It is furthermore the role of the Health Insurance Department
(a) to subsidise the acquisition of aid apparatus and motor vehicles made necessary by physical impairment or missing limbs;
(b) to subsidise courses of training or therapy rendered necessary by serious chronic diseases or accidents;
(c) to subsidise dental treatment outside the scope of Article 37 due to serious consequences of congenital defects, accidents or illness. The Minister issues rules on the implementation of this provision on the recommendation of the SSB;
(d) to pay the costs incurred by the SSI in its administration of health insurance affairs;
(e) to pay travel grants to patients requiring medical assistance abroad and, in exceptional cases, to their attendants. The SSB shall draw up rules on the payment of grants under this Sub-paragraph;
(f) to pay expenses in respect of psoriasis patients who, in the opinion of specialists, require medical assistance in institutions for the treatment of psoriasis rather than hospitalisation. The SSB issues rules on the payment of expenses under this Sub-paragraph.
(g) to subsidise purchase of nutrients and special diet rendered necessary by physical
impairment.
The SSB shall issue rules on the payment of grants under Sub-paragraphs (a), (b), and (g) above. The permission of the SSI for payment shall be obtained beforehand. The SSI may require a testimonial from a specialist as to the necessity of aid apparatus, training, nutrients, or special diet.
The Minister may decide that the Health Insurance Department pay
(a) fees for tests and medical assistance carried out by public health institutions under agreements between the institutions and the SSI;
(b) costs under international agreements with respect to medical assistance rendered to foreign nationals temporarily staying in Iceland.

Subject to Articles 35 and 39 or the provisions of special acts of law, persons insured under Article 32 shall be ensured free hospitalisation, including in maternity clinics, as prescribed by a physician. Hospitalisation shall be ensured for as long as necessary along with medical assistance, medicine and other hospital services.

If an insured person urgently requires hospitalisation abroad because he cannot be provided with the necessary assistance in an Icelandic hospital, the Health Insurance Department shall pay the cost of the hospitalisation. The same applies to the cost of stay, of medicine and of medical assistance which proves necessary abroad following hospitalisation there. The Minister shall appoint a committee which shall decide whether the above conditions apply and where abroad the insured person is to be hospitalised. If an insured person is hospitalised at a place abroad other than the one decided upon by the committee and which is more expensive, the Health Insurance Department shall pay only the cost which would have been incurred at the place which the committee had decided upon. Two head physicians from the National Hospital, one from the Reykjavík Municipal Hospital and one from St. Joseph's Hospital at Landakot, shall be appointed to the committee. The Chief Medical Officer shall be a member of the committee and act as its chairman. The Minister may issue a regulation setting out more detailed provisions on the implementation of this matter.

In addition to the rights listed above, health insurance shall cover the following assistance:
(a) general medical assistance provided outside a hospital by the patient's physician with whom the SSI has contracted. A fee, to be paid by the insured person for each consultation in the physician's office or visit to the patient, may be fixed by a regulation. The health insurance may decide that the patient pay his doctor's fees in full, in which case the health insurance shall reimburse the patient in the amount of its share;
(b) all necessary examination and treatment carried out by specialists and institutions with whom the SSI has contracted. The Minister is authorised to establish the condition that payment of costs under this Sub-paragraph be subject to the condition of a recommendation by the clinic physician or family physician. For each visit to a specialist by reference the patient shall pay a fee to be determined by a regulation. Regulations shall furthermore be established delineating more precisely the rules on using recommendations, including in what instances and in what way the SSI may participate in costs arising from tests and treatment by specialists in cases where the patient does not have a reference.
(c) medicine which an insured person must of vital necessity use regularly. The insured person shall with respect to other necessary pharmaceutical costs pay a fee established by a regulation. If the total cost of the medicine concerned is equal to or less than these limits the insured person shall pay in full. When a medicine has been registered in Iceland the Ministry of Health and Social Security shall decide whether health insurance will participate in payment for the medicine in question;
(d) X-ray examinations and radiation treatment as determined by a rates schedule issued by the Minister of Health and Social Security, however, the insured person shall always pay ISK 900 for each X-ray examination;
(e) per diem sickness benefits pursuant to Article 38;
(f) the cost of midwife assistance in cases of births at home, as determined under Article 39, and in addition per diem benefits equal to per diem sickness benefits for 10 days from the commencement of birth;
(g) dental treatment as provided for in Article 37;
(h) unavoidable costs of travel of the physician to insured persons who are unable to travel on account of their illness, however, the insured person shall always pay ISK 100 for each trip;
(i) seven eighths of unavoidable costs of transport of an insured person to a hospital in this country provided the need for transport is urgent and the insured person's state of health precludes the use of ordinary means of passenger transport. Payment by the insured person however, shall not exceed ISK 2,400. The cost of transport within a town shall not be paid, however, and the cost of the first 10 km shall be deducted from the total cost of transport by ambulance. The same rules shall apply regarding the transportation of a patient from the hospital to his home or place of stay provided the patient cannot be transported by ordinary means of passenger transport. If attendance is necessary, seven eighths of the attendant's fare shall be paid, even on a scheduled journey. The cost of travel between hospitals shall be paid in full by the hospital sending the patient except in cases of transport between hospitals within the same district and in cases where the state of the patient's health allows him to use ordinary means of transport;
(j) unavoidable travel costs, within the limitations of and in accordance with rules issued by the SSB and approved by the Minister, with respect to insured persons who require recurrent treatment by a physician or in a hospital, with or without hospitalisation;
(k) nursing in the patient's home due to serious chronic illness and injuries in accordance with contracts entered into by the SSI and rules issued by the SSB.
The Minister may through a regulation alter the payments of insured persons under this Article and determine in a regulation the maximum number of units in medical prescriptions. The Minister may through a regulation decide that the fees under Sub-paragraphs (a), (b), (c) and (d) be established as proportional and establish the maximum fee payable by the patient. The Minister may also, through a regulation, decide on patient participation in the cost of specialised outpatient services under Sub-paragraph (b).
More extensive assistance in cases of illness than provided for in this Article may also be determined in a regulation, including extension of entitlement to payment of dental costs to other groups than those mentioned in Article 37, and, taking into account the provisions of that Article, the determination of the mode of participation in the dental costs of such other groups.

Health insurance shall pay for dental services, other than orthodontic treatment, in accordance with a rates schedule issued by the Minister. The rates schedule shall apply both to dental service provided on a public basis and to other service. In place of the Minister's rates schedule the SSI may negotiate a rates schedule for dental services, in whole or in part, other than orthodontics.
Payment by the health insurance under Paragraph 1 shall be as follows:

(1) 75% of the cost of dental treatment provided to children and adolescents fifteen years of age or younger, excluding gold fillings, crowns and bridgework;
(2) 50% of the cost of dental treatment for adolescents 16 years of age excluding gold fillings, crowns and bridgework.
(3) up to 50% of the cost of gold fillings, crowns and bridgework for children and adolescents of 16 years of age or younger may be paid in accordance with rules determined by the Minister in consultation with the SSB. Payment under this Sub-paragraph shall only be made provided a special application is submitted with the approval of the health insurance;
(4) 75% of the cost of treatment for old age and invalidity pensioners receiving a full income supplement, and 50% for old age and invalidity pensioners receiving a reduced income supplement, excluding gold fillings, crowns and bridgework. The rate of payment to these beneficiaries may be increased to up to 100% in accordance with rules issued by the Minister in consultation with the SSB.
Invoices for dental services shall be submitted on an invoice form established by the SSI.
Notwithstanding the provisions of Sub-paragraph 1, Paragraph 2 children and adolescents of 15 years or younger shall be entitled to one annual dentist's check-up free of charge.

The health insurance shall pay per diem sickness benefits if an insured person who has reached the age of 16 and does not receive an old age or invalidity pension becomes totally incapacitated for work, provided he stops work and his wages, if he is an employed person, cease.
Per diem sickness benefits shall not be paid for more than a total of 52 weeks in any one period of 24 months. The SSI may, however, decide that the per diem benefits be paid for a longer period if it is clear that the patient will soon be able to work or that it will soon be possible to determine the degree of his disability, temporarily or provisionally. Per diem benefits amounting to less than full per diem sickness benefits, cf. Paragraphs 4 and 5, shall not normally be paid for more than three months.
Insured persons shall receive per diem sickness benefits as from and including the 15th day of illness if they are incapacitated for work for at least 21 days. The waiting period begins on the day when incapacity for work is confirmed by a physician.
Full per diem benefits shall amount to ISK 526.20 per day for an individual and ISK 142.80 for each maintained child under the age of 18, including children outside the home for whom the applicant demonstrably pays maintenance pursuant to a maintenance decree, a certified agreement or a divorce permit.
Persons who have to give up full-time gainful employment shall receive full per diem benefits. Those who give up gainful employment amounting to less than full-time but at least half-time employment shall receive half per diem benefits. If gainful employment amounting to less than half-time employment is given up, per diem benefits shall amount to three quarters of wages lost up to a limit of half per diem benefits. Gainful employment under this Article means all employment for the purpose of gaining an income by employers as well as employees.
Per diem benefits on account of housework in one's own home which because of illness has to be entirely given up shall amount to one half of full per diem benefits, supplemented by one half of proven payments for household assistance to people outside the household in excess of household assistance amounting to one half day per week up to a limit of full per diem benefits. Such expenditures shall be evidenced by clear, countersigned bills, specifying the hours worked, the wages paid and the identification number of the recipient. Expenditures in excess of the normal day-pay rate recognised by the trade union concerned shall not be recognised. An applicant receiving per diem benefits due to loss of gainful employment shall not receive one half per diem benefits due to giving up household work, but shall, on the other hand, be granted a supplement due to expenditures as provided for above.
An applicant's ability to do light household work shall not preclude payment of half or full per diem benefits due to loss of gainful employment under Paragraph 5.
If a patient who formerly worked full time takes up half-time gainful employment or less during his convalescence, he may be paid half per diem benefits during such time for a maximum period of three months.
Per diem benefits shall as a rule be based on the applicant's work during the two months immediately before he became incapable of work. Students are not entitled to per diem benefits on account of absence from studies except in cases where the absence is responsible for delay in passing a certain level of studies.
Per diem benefits shall not be paid to a person on strike unless he was entitled to the benefits before the strike commenced.

The SSI shall conclude agreements regarding payments under this Chapter. If no agreement can be reached, an arbitration tribunal shall lay down the terms of agreement. Each party shall appoint an arbitrator and the Supreme Court the third arbitrator. If the full membership of the arbitration tribunal cannot be appointed in this way, the Supreme Court shall appoint any missing arbitrators.
Daily rates of hospitals not covered by the State Budget, as well as the rates schedules for emergency accident wards and X-ray wards, shall be determined by the Minister of Health and Social Security in close consultation with the relevant institutions. The daily rates and the rate schedules shall be so established as to ensure that the total income of an institution at all times meets the normal administrative costs on the basis of the services which the Minister of Health and Social Security has stipulated that the institution provide.
With respect to private institutions or private persons it shall be regarded as equivalent to an agreement if the Minister's decision on daily rates which shall be a single sum including cost of stay and services is complied with. Otherwise, the SSI may decide, notwithstanding the provisions of Article 34, that the patient be paid a stipulated amount for each day of hospitalisation towards the costs.

If an insured person abroad requires local medical assistance the health insurance shall pay the cost as in the case of medical assistance in Iceland. This shall not, however, apply to persons who are entitled, under the terms of international agreements, to medical assistance in another country due to stay in such country with respect to the medical assistance covered by the agreements.
The SSB shall issue rules regarding to what degree the SSI is authorised to reimburse a person for expenses caused by illness or an accident abroad which would otherwise not be refundable from the institution.
If an insured person abroad in a member state of the EEA requires local medical assistance the health insurance shall pay the cost of the assistance in accordance with the rules of the EEA agreement governing social security.

The SSI is under obligation to seek the best possible terms taking account of quality, with regard to the purchase of goods or service that it pays for or takes part in paying for pursuant to this Act.
The Health Insurance Department of the SSI can make agreements with institutions, companies or individuals for the services it is under obligation to provide in accordance with this Act. Such agreements may be negotiated following tender. In such cases the Health Insurance Department decides which offer, if any, shall be accepted. If offers are unacceptably high or on other respects unsatisfactory, the Health Insurance Department may have the service provided on the basis of a fixed contract price.

The cost of health insurance shall be borne in full by the State Treasury. The total annual expenditures of health insurance shall be in accordance with the decision of the Althing in the annual State Budget Act and Supplementary Budget Act.

The contribution of the State Treasury to health insurance shall be paid to the SSI in regular monthly instalments.

Benefits under this Act are benefits paid in cash and benefits in kind rendered to patients and injured persons.
No one may simultaneously receive more than one type of paid benefit under this Act. The following types of benefits may, however, be received simultaneously:
(a) widow's or widower's benefits under Sub-paragraph (a), Article 30 and all other benefits;
(b) child's pension and per diem benefits;
(c) per diem occupational injury benefits and old age pension;
(d) invalidity pension/occupational injury pension and benefits under Sub-paragraph (f), Paragraph 1, Article 24;
(e) other benefits as permitted under this Act.
If a person is entitled to two or more types of benefits which may not be received simultaneously he may choose the higher or highest of these benefits. If an applicant for per diem benefits is already receiving lower long-term benefits of another type, the per diem benefits shall amount to the balance.
The medical expenses covered by occupational injury insurance in the case of a person who is also covered by health insurance shall be paid by the health insurance subject to reimbursement by occupational injury insurance.
If the recipient of an old age or invalidity pension stays for more than one continuous month in an institution or residential home financed under the State Budget or where the cost is paid by health insurance, his pension shall cease if the person concerned has stayed in an institution for more than four months during the preceding 24 months. However, exceptions from these time limits may be granted in accordance to rules drawn up by the SSB. If the stay is not paid in full a pension may be paid up to an amount equal to the remainder. If the person concerned has an income amounting to less than ISK 3,000 per month he may be paid a monthly personal allowance of ISK 10,170. Income above ISK 3,000 per month reduces the personal allowance by 65% of the surplus. The allowance shall lapse entirely in the case of annual income exceeding ISK 223,754. If the income of the person concerned are derived from work at the institution and if the work can be regarded as rehabilitation or handicraft the decision may be made that such income shall not have the effect of reducing the amount of the personal allowance. If a person receiving pension stays outside the institution for a period of several days without being discharged such a pensioner may be paid a personal allowance which shall not be lower than the double sum of the per diem sickness benefits each time. The SSB shall issue more detailed rules on the payment of such per diem benefits.

A man and a woman who live together and have been registered as living together for one year in the national register shall under this Act have the same entitlement to benefits as a married couple. The same applies to a man and woman to whom a child has been born or if the woman is with the man's child provided their unwed cohabitation is registered in the national register. The same applies to benefit entitlement of the survivor in the event of the death of either.
Such couples living together shall in no case be entitled to higher benefits than they would have been entitled to had they been married. Either partner may, however, be paid occupational injury benefits.
A common legal residence or cohabitation based on other indisputable evidence for a period of over one year shall be the equivalent of registration of the cohabitation in the national register.

If there is reason to believe that benefits paid will be used in a manner incompatible with the purposes of this Act, the SSI may pay benefits to persons other than the beneficiary himself or a person responsible for maintenance. Such measures, however, shall as a rule be referred to the local authority or child welfare committee in the case of a child's pension.

Benefits intended for the beneficiary himself shall not be paid if the person neglects to heed medical advice or refuses to participate in therapy or vocational training which could improve his circumstances or prepare him for a new job.

Applications for benefits shall be made in writing on forms provided by the SSI. Such forms shall be available in the offices of the SSI, at its agents and elsewhere as appropriate.
Applicants are required to answer all the questions and provide all information necessary for decision on allocation of benefits or revision of entitlement to benefits.
No application shall be required for sickness benefits other than per diem sickness benefits.
The staff of the SSI and its agents shall fully acquaint themselves with the circumstances of applicants and beneficiaries and inform them of the full extent of their rights under this Act, under regulations and under the procedural rules of the SSI.

All applications shall be ruled on as quickly as possible and benefits shall be calculated as from the day on which the applicant fulfilled the conditions for benefits. Benefits under Chapter II, other than pensions under Chapter III shall, however, be calculated as from the first day of the month following the date on which the applicant became entitled to benefits and shall cease on the last day of the month in which such entitlement ends.
Benefits other than occupational injury pension and per diem sickness benefits shall never be granted retroactively for a period longer than two years. Per diem sickness benefits shall, as a rule, not be granted retroactively for longer than two months but the SSI may, however, extend this limit up to six months in cases where the entitlement to benefits is in other respects beyond doubt.
The conditions giving rise to entitlement to benefits may be reviewed at any time and the benefits adjusted to any changes which may have occurred.

Benefits shall be paid on the first day of each month. Sickness benefits and per diem benefits may, however, be paid for shorter periods. Where communications are difficult benefits may also be paid retroactively for periods exceeding one month.
Benefits which have been granted but not claimed within 12 months shall be forfeited but such benefits may, however, be restored on submission of a new application with arguments.

In the event that a beneficiary has been paid greater benefits than those to which he is entitled under this Act the SSI has a claim to reimbursement from him pursuant to general rules. The amount in question may also be deducted from benefits to which the beneficiary may subsequently become entitled.
If a payment under Paragraph 1 has been made because of a fraudulent act on the part of the beneficiary, the SSI may require that he repay up to twice the amount paid in excess. This has no effect on any penalty to which the beneficiary may otherwise have rendered himself liable.

If a beneficiary is sentenced to a term in prison or otherwise committed to institution, all benefits to him shall be discontinued for the duration of the term, cf., however, the concluding Paragraph of Article 43. Prisoners shall enjoy health insurance other than per diem sickness benefits, in accordance with general rules thereupon.
The SSI may, however, decide to pay the benefits or a part thereof to his spouse and children or to a third party who will ensure that the benefits are used to their best advantage.

Claims for benefits under this Act may not be assigned or encumbered, nor shall they be subject to seizure, attachment or distraint, nor shall benefit payments be withheld for payment of public levies other than insurance premiums under this Act.

Recipients of benefits resident in countries with which the government concludes agreements or with which the Minister has negotiated on the basis of Article 64, shall be paid the same benefits as he/she would have been entitled to if he/she were resident in Iceland.
The Minister of Health and Social Security may decide through regulation that benefits paid to a beneficiary under foreign law be deducted from benefits which the beneficiary is paid in Iceland for the same period.

The Director of Internal Revenue shall levy premiums under Article 31 along with income and property tax and enter them on the tax roll as provided for in Article 98 of Act No. 75/1981, as amended, and Article 99 of the same Act and the provisions of Act No. 30/1992 on the Tax Supervision Committee shall, as appropriate, apply to premiums.
Regulations issued under Paragraph 4, Article 31 shall stipulate the manner of levying and collecting annual premiums on the machinery described therein.
The date on which premiums fall due shall be determined in a regulation.

The premiums for occupational injury insurance shall be collected by the collectors of the State Treasury and local authorities or by special collection agencies. The provisions of Act No. 75/1981, including provisions on punitive interest and rights of attachment shall apply to the collection of premiums.

Premiums under Article 31 in respect of seamen and premiums in respect of power-driven machinery according to the same Article shall attach as statutory liens to the ships, and power-driven machinery in question and shall have priority over all liens other than statutory liens for levies of the State Treasury.

The income of the reserve fund for pension insurance shall consist of interest on capital and allocations under Paragraph 1, Article 20. The income of the reserve fund for occupational injury insurance shall consist of interest on capital and allocations under Paragraph 2, Article 31. Liquid assets which are not required for the day-to-day administration of the insurance shall otherwise be invested in Government Bonds, banking securities or in loans guaranteed by the Government or other reliable surety.

A parent who obtains an official decree for an award in respect to the maintenance of his children or for special payment under the Children's Act No. 20/1992, Article 15, may turn to the SSI and collect the award or payment in accordance with the decree subject to the limits set under Article 14 as to amounts and the age of the children. The same shall apply to a parent submitting a certified agreement on child maintenance award or other payments under Chapter III of the Children's Act No. 20/1992.
In the same manner a mother may collect from the SSI, by official decree or on the basis of a certified agreement:
(a) a maintenance pension for a period up to three months in accordance with the Children's Act No. 20/1992, Paragraph 1, Article 21;
(b) a nursing care and maintenance allowance for a period up to nine months in accordance with the Children's Act No. 20/1992, Paragraph 2, Article 21;
(c) costs due to pregnancy and childbirth in accordance with the Children's Act No. 20/1992, Paragraph 1, Article 22.
Immediately when the district commissioner has received a request from a mother for an admission of paternity from a designated father she may receive maintenance in respect of her child within the limits set out in Article 14 of this Act.
The SSI may pay child maintenance up to 12 months retroactively, calculated from the beginning of the month when an official decree, a certified agreement or a certificate from the District Commissioner evidencing the reception of a request from a mother for a paternity suit is received by the SSI, provided the provision of Paragraph 4, Article 14 does not apply.
Parties charged with the maintenance of a child following the death of a parent or for other legitimate reasons, including the local authorities of the district responsible for the child's maintenance if they have contributed funds toward the child's maintenance, are, as appropriate, entitled to the same rights as parents.
The maximum amounts payable by the SSI may be set out in a ministerial regulation issued by the Minister of Health and Social Security.

The SSI shall send the Municipal Alimony Collection Centre a notice of the first payment under Article 59 within a period of one month. The notice shall be accompanied by a copy of an official decree or a certified agreement.
The Municipal Alimony Collection Centre shall reimburse the SSI for payments under Paragraphs 1-3, Article 59 on a monthly basis as the collection permits. Returns on uncollected debts shall be governed by the provisions on the Municipal Alimony Collection Centre Act.
The State Treasury shall reimburse the SSI for maintenance paid in respect of fathers having rights of maintenance abroad and for maintenance paid under Paragraph 4, Article 59 until a decree of maintenance has been issued.

The SSI may assume responsibility for the accounts and daily transactions of individual pension funds.

The SSI may engage in voluntary injury insurance. In such an event an insurance policy shall be issued in each instance. Furthermore, the SSI may, subject to approval of the Minister, engage in third-party insurance.
The Minister shall in a regulation set out in further detail the arrangements for insurance activities under this Article, including the extent to which the SSI shall reinsure for the risks it underwrites.

The Minister may decide that ship-owners shall be obliged to insure the risks they bear under Article 36 of Act No. 35/1985 with respect to injuries or illness giving rise to benefits, in such a manner that the SSI shall pay the insured person full wages or share of the ship's catch for the period stipulated by the current legislation on seamen.
The accounts for insurance under this Article shall be kept separate from the accounts for other activities of the SSI. Per diem benefits under Articles 28 and 38 shall go to the SSI for as long as wages or share of catch are being paid and the premiums payable by ship-owners for this additional insurance shall be determined in such a way that such premiums, together with per diem benefits, cover expenses.

The Government may negotiate with foreign States and the Minister with foreign insurance institutions on reciprocal rights to benefits under Social Security. Such agreements may inter alia stipulate that the period of residence, period of employment or period of insurance in another contracting State shall be equivalent to the period of residence in Iceland, whether or not the persons involved are Icelandic citizens or citizens of other contracting States. Such agreements may, furthermore, provide a right to benefit payments under the Social Security Act with respect to residence in another contracting State, cf. Article 11, Article 54 and Point 1 of the transitional provisions.

Social security benefits, as well as payments pursuant to Article 59 and amounts pursuant to Article 17, shall be adjusted annually in accordance with the current State Budget. Adjustment of social security benefits shall take account of wage trends but benefits should never be raised less than the price level pursuant to the cost-of-living index.

The Minister may detail further provisions for the implementation of this Act in a regulation. The Minister may also publish as regulations the rules of the European Union regarding social security provided the provisions of such regulations have a legal basis in this Act.

This Act takes effect on 1 January 1994.

1. Subject to Section 2 of this Paragraph 1, benefits decreed prior to the passing of Act No. 67/1971 shall not be reduced on the basis of provisions in Chapter II on the payment of benefits in proportion to the period for which the beneficiary has been legally residing in Iceland.
If an old age pensioner or an applicant for old age pension is not legally residing in Iceland, his period of entitlement under Article 12 shall be calculated only on the basis of the time for which the person concerned has been legally residing in Iceland following the end of 1946. The SSB may in special circumstances grant exceptions from this provision.
2. The Minister may negotiate with corporations to employ disabled persons who are recipients of an invalidity pension, invalidity allowance, rehabilitation pension or occupational injury invalidity benefits under 50% and have a working capacity for which use has not been found on the market and have no substantial income for their sustenance other than social security benefits. Reductions of benefits during the period of work shall proceed under the general rules on reductions applicable at the time. Further provisions governing such disability employment shall be set out in a regulation.
3. …
4. Persons who have decided to defer taking an old-age pension previous to 1 January 1992, cf. Article 11 of Act No. 67/1971 on Social Security, shall retain their rights. The SSI shall adjust amounts with respect to the deferment in accordance with changes in the amounts of social security benefits at any given time. If a person who has deferred pension beyond the age of 67 dies before 1 January 1992 leaving a spouse, the surviving spouse shall, in addition to his/her own pension, be entitled to the increase due the deceased person in respect of the postponement.
5. …
6. …
7. In the year 1997 it shall be permissible to raise the social security benefits by up to 6.6% in excess of the premises of the State Budget.
8. Notwithstanding the provisions of Sentence 1 of Sub-paragraph (b), Article 36 of this Act the SSI may reimburse patients who visited specialists that had terminated their contract with the SSI for the social security's share in expenses from medical service. Reimbursement is subject to the condition that the patient present a satisfactory bill and the specialist in question has renewed the contract with the SSI. In the case of the specialist not having renewed the contract because of withdrawal from business as a self-employed specialist the patient shall still be entitled to reimbursement in accordance to the aforesaid. The reimbursement shall be based on the scale of charges on 1 September 1997 in accordance with the agreement between the Reykjavík Medical Society and the SSI on 7 March 1996.
9. The SSI is authorised to decide on application that a person who fulfilled the condition set out in Article 9b on 1 January 1994 or later be considered insured in Iceland.
Application for insurance in accordance with authorisation under this provision should have been submitted and received by the SSI no later than 1 July 2000.
10. On the first appointment of members to the Social Security Ruling Committee the Chairman shall be appointed for a period of six years, the Vice-Chairman for four years, and the third committee member for two years. Alternates shall be appointed in the same manner.
11. The provisions of Article 1 of this Act are valid for persons assessed as disabled for the first time after the provisions take effect but not for persons who have been assessed as disabled in accordance with provisions of older Acts unless on special application.

Those invalidity pensioners to whom Paragraph 2 of Article 17 of Act No. 117/1993, cf. Article 14 of Act No. 148/ 1994, applied during the period of 1 January 1997 to 31 December 1998, and those to whom Paragraphs 5,-7, of Article 17 of Act No. 117/1993, cf. Article 1 of Act No. 149/1998, have been applicable during the period of 1 January 1999 to 31 January 2001 shall be entitled to payment of a pension supplement to their invalidity pension for the said time periods as follows:
a. For the period 1 January 1997 until 31 December 1998 a pension supplement shall be paid which is calculated pursuant to the provisions of Paragraph 2 of Article 17 of Act No. 117/1993, cf. Article 14 of Act No. 148/1994, but without the curtailment pursuant to Paragraph 2 of Article 4 of Regulation No. 485/1995 which was based on the calculation of one half of the combined income of both spouses as the income of the pensioner. Previous payments of pension supplements that the invalidity pensioner concerned has already received shall be deducted from the pension supplement so calculated.
b. For the period 1 January 1999 until 31 January 2001 a pension supplement shall be paid which is calculated pursuant to the provisions of Article 1 in Act No. 3/2001. Previous payments of pension supplements that the invalidity penisoner concerned has already received shall be deducted from the pension supplement so calculated.

The calculation of pension supplements pursuant to Transitional Provision I shall be based on the reference amounts in effect during each given time period. The amounts stipulated in Article 1 in Act No. 3/2001 shall, when calculated pursuant to section b of Transitional Provision I, be calculated retroactively to the appropriate periods in accordance with adjustments in the amount of pension supplements pursuant to Article 17 of Act No. 117/1993, on Social Security, as amended. The payments shall carry an annual interest rate of 5.5% from the first date that the pensioner was entitled to payment for the period in question pursuant to the provisions relating thereto in Act No. 117/1993. Interests shall be paid even if the pensioner in question did not file an application for a pension supplement.

The State Social Security Institute shall take the initiative in disbursement pursuant to Transitional Provisions I and II in cases where it has in its possession applications from pensioners and information that is sufficient for calculating the amounts to be paid. If an application has been filed, but without sufficient information, the State Social Security Institute shall advise the pensioner concerned to supply the missing information within a reasonable period of time, as determined by the Institute. All payments that the Institute is able to calculate without the pensioner's assistance shall be paid before 1 April 2001.

Invalidity pensioners who believe that they are entitled to a pension supplement pursuant to Article 1 of Act No. 3/2001, but have not filed an application for the period in question, may apply for a pension supplement and have their cases resolved pursuant to the stipulations of this Transitional Provision, provided that the application is filed before 1 July 2001. The provisions of Article 48 of Act No. 117/1993 shall apply to all new applications filed subsequent to that date.

Payments of pension supplements and interest pursuant to Act No 3/2001 constitute taxable income for the fiscal year 2001. The State Social Security Institue shall withhold taxes on pension supplements pursuant to Act No. 45/1987, on withholding taxes.
Notwithstanding the provisions of Paragraph 1 a beneficiary is entitled until the end of 2001 to request that payments of pension supplements for the tax years 1997, 1998, 1999 and 2000, pursuant to the Transitional provisions above, be counted as taxable income for each of the respective years. Taxation for each year is then reassessed pursuant to Article 101 of Act No. 75/1981, on Income Tax and Net Worth Tax, as amended.

Old-age pensioners to which Paragraphs 2, 3 and 7 of Article 17 of Act No. 117/1993, as amended, have applied during the period 1 January 2001 to 31 March 2001 shall be entitled to payment of a supplementary pension to their pension, to be calculated as provided for in Article 1 in Act No 9/2001. Payments of pension supplement already received by the pensioner in question shall be deducted from the pension supplement so calculated. Payments shall carry annual interest of 5.5% from the date that the pensioner was first entitled to payment pursuant to the provisions of Act no. 117/1993 relating thereto. Interest shall be paid even if no application had been submitted regarding pension supplement from the pensioner in question.

The State Social Security Institute shall take the initiative regarding payments pursuant to Interim Provision I above in cases where the Institute is in possession of applications from pensioners and the information necessary to calculate the amounts to be paid. In the event of applications without adequate information, the State Social Security Institute shall direct a request to the pensioner in question to make amends within a reasonable deadline to be established by the Institute. All payments which the Institute can itself calculate without the involvement of pensioners shall, to the extent possible, be completed before 1 May 2001.

Pensioners who believe themselves to be entitled to pension supplement pursuant to Article 1 in Act No 9/2001, but who have not applied before the period in question, may apply for income supplement for themselves, and shall be entitled to treatment pursuant to Interim Provision I above, cf. Article 48 of Act No. 117/1993 on new applications for pension payments.