The Mutual Insurance Mechanism in Horizon Europe is replacing the Guarantee Fund in Horizon 2020 and it can vary between 5%-8%. Compared to the previous framework programme, the Mutual Insurance Mechanism in Horizon Europe is not always 5%. It is the basic rate but can vary from case to case. As in Horizon 2020, the amount will be deducted from the prefinancing and will be sent to the Mutual Insurance Mechanism. The funding authority may decide to increase the rate up to 8% . This Mechanism may be extended to beneficiaries of any other directly managed Union programme.

References:

GMGA Data Sheet

Reporting and payment modalities (art 21, 22):

Mutual Insurance Mechanism (MIM): Yes MIM contribution: [5-8%][[…]%] of the maximum grant amount ([insert amount]), retained from the initial prefinancing [additional OPTION if selected for the call:, […]% of the maximum grant amount ([insert amount]), retained from the second prefinancing][additional OPTION if selected for the call: and […]% of the maximum grant amount ([insert amount]), retained from the third prefinancing]

GMGA ARTICLE 22 — PAYMENTS AND RECOVERIES — CALCULATION OF AMOUNTS DUE

22.3.1 Prefinancing payments

The contribution to the Mutual Insurance Mechanism will be retained from the prefinancing payments (at the rate and in accordance with the modalities set out in the Data Sheet, see Point 4.2) and transferred to the Mechanism.

22.3.2 Amount due at beneficiary termination — Recovery

If payment is not made to the coordinator by the date specified in the confirmation letter, the granting authority may call on the Mutual Insurance Mechanism to intervene, if continuation of the action is guaranteed and the conditions set out in the rules governing the Mechanisms are met.

22.3.4 Final payment — Final grant amount — Revenues and Profit — Recovery

The amount retained for the Mutual Insurance Mechanism (see above) will be released and paid to the coordinator (in accordance with the rules governing the Mechanism).