Sole Proprietorship and Disability Status: When is a Declaration Sufficient and When is Form DD-1 Required?

When the insured already has sp at the time of disability

If the insured person acquires a disability category while already holding a disability certificate and continues to retain the same disability certificate after the disability certificate has been issued, he/she must submit a declaration to the Pension and Disability Insurance Institute of Slovenia. In the declaration, the insured person states from when he/she has been performing the activity in accordance with the established disability. The compensation is granted to him/her from the date stated in the declaration, but no later than from the finality of the classification decision. This is the decision by which he/she was granted the disability category. In this case, it is therefore generally not necessary to submit the DD-1 form, since the insured person is already performing the activity and continues with the same disability certificate.

When the insured person decides to take out a disability pension after already being recognized as disabled

A different procedure applies when the insured person was in a different status at the time the disability occurred, for example:

• in an employment relationship,
• employed by a private company,
• business owner,
• unemployed,
• or in another insurance status.

If such a person decides to open a private limited company after having already acquired rights from disability insurance, i.e. after the classification decision has become final, they must submit a DD-1 form to the ZPIZ. On the basis of this form, the ZPIZ checks whether the activity that the person wishes to perform is appropriate in relation to the recognised disability. If the activity is assessed to be appropriate, the compensation is recognised from the date of opening the private limited company.

Why is Form DD-1 needed in this case?

For persons who open a business only after being recognized as disabled, this involves a change in their employment or insurance status. Such insured persons were usually already receiving compensation before this or could be entitled to it as employed, unemployed or in another status. Since they start a new activity by opening a business, it is necessary to check whether this activity is consistent with their disability and remaining working capabilities. Therefore, the ZPIZ assesses the suitability of the activity on the basis of the DD-1 form.

When is a declaration sufficient and when is a DD-1 form required?

If a person was already a holder of a disability insurance at the time of the disability and continues to hold the same disability insurance after the disability is recognized, a statement stating when they have been performing the activity in accordance with the disability is generally sufficient.

However, if a person opens a business only after their disability insurance rights have already been recognized, they must submit a DD-1 form to the ZPIZ. On this basis, it is checked whether the intended activity is appropriate given the recognized disability.

Author: Danijela Uran, RRA Koroška doo