Insurance and reinsurance in Germany is governed by the Insurance Contract Act which was enabled in 2008. Under this legislation, any individual or company making an insurance agreement will be granted a certain amount of money, called an insurance premium, should anything happen related to the terms of the insurance contract. There are several types of insurance policies that can be contracted according to the German Civil Code. You can refer to our German lawyers for details about the available insurance policies that can be concluded in this country.
Even if the legislation is very specific about the terms of insurance contracts, there are situations which lead to certain disputes. Under Section 30 of the Insurance Law, a holder of an insurance policy is entitled to claim the insurance premium once something has happened. The claim can be made by submitting a notification. Insurance claims must be submitted as soon as possibile after the occurrence of accidents or other events covered by the contract and must be paid within a period of time of up to 3 years by the insurance company.
If the insurer fails to pay the premium, the insured party is allowed to seek any remedy available within the German courts of law. Most insurance disputes in Germany are initiated as claims against insurers not paying for the amounts stipulated in the agreement. The judge will usually issue a preliminary injunction ordering the insurance company to pay the amount contracted.
Recently, more and more disputes related to insurance claims are resolved through alternative dispute resolution methods. Section 214 in the German Insurance Contract Act allows for arbitration and mediation proceedings in order to resolve litigations. The most important mediation organizations in Germany are the Ombudsmann Private Kranken- und Pflegeversicherung who deals with disputes related to health insurance policies and the Versicherungsombudsmann e.V (The German Insurance Association) who handles all other types of insurance litigation cases. The Association can issue decisions against claims of maximum 10,000 euros.
For complete information related to the new Insurance Law and representation in litigation cases you can contact our law firm in Germany.
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