When traveling or living in Cyprus, insurance is not just a formality required by the "evil authorities." It's a real way to protect your health, property, peace of mind, and finances. While Russians are not accustomed to voluntarily taking out insurance, foreigners consider insurance concerns part of everyday life.
It's not surprising that the rules on this wonderful island may differ for tourists, residents, and business owners. To be prepared for all possible situations, from the common cold to accidents or natural disasters, it is important to consider all options in advance and choose the most suitable one.
Health insurance in Cyprus: For tourists and residents
The state provides its residents with an almost free healthcare system called GESY (General Healthcare System), which forms the basis of medical care for the island's inhabitants. It covers basic services for everyone who officially lives and works in Cyprus, regardless of citizenship. The GESY model is similar to the Russian model in that contributions are paid by employees, employers, and the state, and the following people are eligible for services:
- Cyprus citizens;
- EU residents with permanent residence and employment on the island;
- Third-country nationals - legible canidates need to be officially employed and make contributions, or have permanent residence.
Tourists and residence permit holders without the right to work are not eligible for the GESY system and must therefore purchase private health insurance. In order to obtain permission to visit or live on the island, an insurance policy is mandatory.
How GESY works:
- The patient chooses a general practitioner, or a pediatrician for their child.
- In case of illness, all calls go to the chosen therapist or pediatrician.
- If necessary, the general practitioner refers the patient to specialists or for tests, which are paid for separately.
Patients pay a nominal fee for individual services. For example, for a specialist consultation, prescription medication, or an ambulance call. GESY patients have an annual spending limit of €150 for ordinary citizens and €75 for those eligible for benefits so they do not have to pay too much for treatment.
Despite the availability of the convenient GESY system, private health insurance in Cyprus is also in demand (and not only among tourists). It provides access to clinics without referrals, covers expensive dental and diagnostic procedures, and speeds up service. Prices depend on the patient's age, the scope of insurance coverage, medical history, and the program selected. The minimum coverage starts at €200 per year, while comprehensive plans start at €800 and can cost several thousand euros.
Note: To obtain a visa, you can purchase a travel insurance policy that covers at least €30,000. About details you need to inquire in your country of origin. However, this type of insurance is no longer suitable for obtaining a residence permit.
Car insurance in Cyprus
Car insurance is mandatory on the island. Every driver must have at least third-party liability insurance, which is similar to Russian OSAGO. This type of insurance compensates the other party for damage in the event of an accident.
In general, there are three main types of car insurance in Cyprus:
- Third-party liability;
- Liability + Fire and Theft Protection (but not for damage in the owner's garage);
- Comprehensive insurance.
Comprehensive insurance often includes a bonus of compensation for car rental or the provision of another car for the duration of repairs. However, this does not apply if the driver was under influence of any substances. Many insurance companies on the island do not cover accidents on dirt roads, so this should be checked carefully when filling out the paperwork.
It is worth mentioning the deductible, which is a fixed portion of the damage paid by the insured. This means that, in the event of an accident, the company will not pay the full amount but rather a portion of it. The deductible is usually higher than what the driver pays. Insurance is included in the rental price, so tourists usually do not worry about this issue.
Insurance for real estate and personal property
Property insurance in Cyprus is not formally mandatory, but many owners purchase it to protect themselves against risks. It is worth remembering that, for Russians, this annual expense is not mandatory, whereas for Cypriots, it is a necessary part of everyday life that provides peace of mind.
Banks require insurance for mortgages, and the lack of it in the event of an earthquake or fire can result in the loss of large sums of money, especially when it comes to investments that are best protected on all fronts.
To take out home insurance, you will usually need the following documents:
- Documents proving ownership (title deed and purchase agreement).
- Floor plan of the house;
- A property valuation, which the insurance company can carry out;
- Your passport or another form of identification.
You can insure both the building and its contents, i.e., movable property. The policy may include protection against fire, flooding, theft, and even natural disasters. Coverage amounts and costs vary greatly, so it is best to find out all the details at the insurance company's office or on their website in advance.
Who is eligible for social insurance?
Social "bonuses" are usually available to people who work and live permanently on the island. They traditionally include:
- Pension;
- Medical care (see above regarding GESY);
- Various benefits, such as unemployment and pregnancy benefits;
- Benefits for relatives, especially children, etc.
Contributions to social funds are deducted from official salaries. They usually amount to 8.8%. You can receive a pension without having worked in Cyprus beforehand. However, to qualify, you must have been a legal resident of the island for at least 20 years after turning 35, and you cannot be receiving a pension from another country.
What should you do in the event of an insured event?
If a tourist encounters problems during their trip to Cyprus, they should not delay. First, take care of your health, and then take care of everything else. Contact a partner clinic included in the list provided by the insurer first. It is important to keep all documents, including statements, receipts, and medical reports. At the same time, contact the insurance company using the provided policy contact details (they usually work around the clock). The main tasks are to report the incident promptly and follow the operator's instructions to ensure complete reimbursement of expenses.
The procedure is significantly different for those who live in Cyprus. First, notify your personal doctor or call the company that provided your private health insurance. Sometimes, an illness turns out to be serious, which usually involves expensive treatment and even hospitalization. In this case, you should contact your insurer as soon as possible because missing the deadline for submitting a claim may result in rejection or additional problems.
In the event of a car accident, quickly record all the details: the accident location, vehicle damage, and the contact details of those involved and any witnesses. Of course, before doing this, you should provide or obtain medical assistance for anyone who is injured. Call the police immediately to obtain an official report.
Next, notify your insurance company and clarify whether the insurance limit applies to the situation, especially if the accident occurred on a dirt road or if the car is registered abroad. If the driver is at fault, they must pay the deductible according to the policy terms. If they are drunk, they must pay for all the damage. If you have additional coverage, the company may provide a replacement car for the duration of the repairs or compensate you for the cost of renting a car.
As trite as it may sound, a well-drafted insurance policy can help protect your health, life, home, and car from a variety of risks. The clearer a tourist or permanent resident understands the terms of their insurance, the smoother their trip or real estate transaction will be. Only the insurance company can provide complete information about prices, so carefully study every detail, and don't be afraid to ask employees detailed questions.
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