On diplomats and insurances

By Philipp Boy.

In the world of insurances diplomats are a difficult bunch, for they can be insured in their home countries but likewise lack such necessary protection in the receiving state. In such cases financial institutions and insurers might be hesitant to extend credit or insurances to diplomats because they have no legal means of ensuring the money repaid, or a contract actually honoured. Luckily most governments require their missions and staff to comply with local contracts and laws concerning credits, rents, labour law (for local hires), parking fines, and even some levies.

Embassies and their staff may have need mainly of four types of insurances:

General Liability Insurance (GLI) –As the name entails, it is a general insurance network meant to protect the “insured” from the risks of liabilities imposed by lawsuits and similar claims (though most care unsuccessful against diplomatic missions).

The current case for GLI for diplomats is focused on property and liability insurances as well as a variety of other covers for the embassy buildings, consulates and residences.  Broiler and machinery as well as equipment coverage for heating/cooling systems amongst others are normally automatically included. The coverage is standard and available for embassies, missions, consulates or residences owned by the sending state, or rented premises in the receiving state.

The difference lies in the type of contract entered into by the insurer as insuring a building owned by a foreign state means also signing a contract with a foreign entity.  

Health Insurance –Different types of health insurance plans meet different needs. When you compare options, it’s important to understand how they are structured. For diplomats plans covering the staff of an entire mission are normally more desirable to guarantee a good and high coverage for all employees.

Very important for diplomats to keep in mind the (hopefully unnecessary) need of repatriation in case of serious illness or disability while on duty abroad. Catastrophic Health Insurance Plans cover essential health benefits but have very high deductibles. The latter entails that it provides a kind of “safety net” coverage in case you have an accident or serious illness.

Business vehicles –Business vehicles are those registered in the name of the embassy or consulate at the receiving country’s Ministry of Foreign Affairs.

Personal vehicles –Insurances are also available for personal vehicles of diplomats, in which case the vehicle must be registered under the individual name of the diplomat rather than under the name of the mission.