BGH: As a rule no compensation

for insurance companies in the event of concealment of circumstances relevant to the risk in the insurance application
“In the past, even the future was better.” (Karl Valentin)
An insurance company is sued for payment of damages in the amount of 268,039.38 Euro (household insurance) and 51,150.90 Euro (building insurance). The policyholder had concealed pre-contractual water damage from the insurer. The policyholder’s claim was dismissed at first and second instance, as the insurer was entitled to compensation “due to a breach of the obligation to provide information when applying for insurance”. The Federal Court of Justice (BGH) overturned this decision in its ruling of 7 February 2007 (Case No. IV ZR 5/06). No compensation from BGB besides the regulations in §§ 16 ff. VVG: The BGH based its decision on the fact that an insurance company is regularly not entitled to “damages for breach of pre-contractual duty of disclosure” (CIC) if the policyholder breaches his pre-contractual duty of disclosure. Sanction options of the insurer: The insurer regularly has only the conclusive options of the VVG open to it if a duty of disclosure has been breached, in particular – premium increase – cancellation of the insurance contract – withdrawal from the contract This is settled case law of the BGH. Exception: deception about non-hazardous circumstances – other protected interests. Thus, only in cases outside the scope of application of §§ 16 ff. VVG, for example in the case of intentional immoral damage, or in the case of tortious acts. This is particularly the case if the policyholder would have taken out the insurance “with the preconceived intention” of using the insurance for fraudulent claims and/or intentionally causing future insurance claims. However, it will rarely be possible to prove this in practice.
Status: 20.04.2007
(Expert Report, 20.04.2007)
Courtesy ofwww.experten.de.

Our office in Munich

You will find our office at Fasolt-Strasse 7 in Munich, very close to Schloss Nymphenburg. Our team consists of highly motivated attorneys who are available for all the needs of our clients. In special cases, our law firm cooperates with selected experts to represent your interests in the best possible way.


About the author

Dr. Johannes Fiala Dr. Johannes Fiala

Dr. Johannes Fiala has been working for more than 25 years as a lawyer and attorney with his own law firm in Munich. He is intensively involved in real estate, financial law, tax and insurance law. The numerous stages of his professional career enable him to provide his clients with comprehensive advice and to act as a lawyer in the event of disputes.
»More about Dr. Johannes Fiala

On these pages, Dr. Fiala provides information on current legal and economic topics as well as on current political changes that are of social and/or corporate relevance.

Arrange your personal appointment with us.

Make an appointment / call back service

You are already receiving legal advice and would like a second opinion? In this case please contact Dr. Fiala directly via the following link.

Obtain a second legal opinion

The first telephone call about your request is free of charge.