Act No. 49 on Bjargráðasjóð (Natural Disaster Relief Fund).

This Act establishes Bjargráðasjóður (the Natural Disaster Relief Fund) as an independent state-owned institution based in Reykjavík, governed by a three-member board appointed by the Minister for four-year terms. Its purpose is to provide financial assistance, in the form of grants, to individuals and associations for major direct damage caused by natural disasters, including damage to taxable real estate, agricultural fences, hayfields and electricity lines, hay used in agricultural production, and crop failure caused by unusual cold, drought, wet weather or frost damage. The Act excludes losses covered by ordinary insurance or otherwise compensable, losses caused by intent or negligence, cases where reasonable preventive measures were not taken or property was in an unusually risky location, and damage to larger infrastructure such as energy and harbour works, sea defences, aquaculture facilities and shipyards. The Fund’s income consists mainly of state contributions, interest and other income; state contributions are paid monthly. The board decides whether damage qualifies for support, sets grant rates and the claimant’s own-risk share, may differentiate support by agricultural sector or property type, and may appoint a committee to investigate generally compensable damage affecting one or more localities. The Act also regulates annual accounts, auditing, investment of unused funds, possible state loans or guarantees, exemption of loan instruments from stamp and state-guarantee fees, and provides for further rules to be set by regulation approved by the Minister.