A small question with big financial implications

Employee insurance and DGA status

The status of Director-Major Shareholder (DGA) determines whether a person is covered by the employee insurance (WW, WIA, ZW). According to the DGA designation regulation, an employee is compulsorily insured for these schemes, unless he has sufficient control and cannot be dismissed against his will. In this case it is therefore important to assess assess whether there is still a relationship of authority and subordination. If so is the case, the employee remains compulsorily insured for employee insurance.

Impact on the Pension Act and insurance coverage

A different definition applies for the Pension Act: a person is considered a DGA if he directly or indirectly owns 10% or more of the voting shares. This has major implications for pension and disability insurance:

• Pension plan: participation in group pension plans, such as those of an insurer, is no longer possible.
• Old-age pension, partner's pension and orphan's pension: these coverages will lapse.
• Additional partner's pension from the Anw gap: this coverage will lapse
• Disability premium waiver: this falls away
• WGA gap and WIA top-up insurance: these supplementary disability insurance policies are no longer applicable.

From the policy conditions it can be seen that a DMS is not co-insured for the absenteeism insurance (two years of sick pay). This while the employee remains remains insured for social insurance and the employer is thus bound by the two-year obligation to continue paying wages for two years.

In short, both the employer and the employee face significant risks if these consequences are not identified in a timely manner.