The hullabaloo in business closure insurance has been increased by the changing views of the Federal Employment Agency (BA) on the crediting of short-time work compensation – our research provides you with a clear picture: The BA now justifies the complete non crediting of insurance benefits:
versicherungstip’ recently uncovered an instruction sent to the offices of the Federal Employment Agency (BA) on the newer interpretation of the crediting or non crediting of benefits from company closure insurance against short-time work compensation (KuG) (Current BA instruction: non crediting of insurer benefits against short-time work compensation). According to this, all benefits, regardless of whether they are based on goodwill or because the insured event is recognised, “do not have a reducing effect on the short-time working allowance”. This would be a substantial extension of the previous view and relevant for decision-making in the context of the ‘Bavarian recommendation’:
++ No crediting despite full BSV benefits?
++ Is this in accordance with the legal regulations?
++ Is there really a legally binding waiver or has a wording error crept into the BA instruction?
vt’ has made enquiries with BA and received the following clarification with reference to the department:
“According to this, in the case of an unavoidable event such as the Corona pandemic and the associated large-scale official orders to keep factories closed, it would not be proportionate to refer employers to the priority use of insurance payments to cover wages. The employer cannot be expected to bear the full operational risk in such a case. Benefit payments from a plant closure insurance policy are therefore not taken into account in the short-time working allowance even if they are paid in full and, if necessary, also cover wage costs”.
‘vt’ conclusion:
++ This is very good news for companies that receive KuG and full BSV benefits. It should, however, be examined whether the AVB of the paying insurers provide for a right of reduction if state benefits and KuG lead to a reduction in claims
++ The new KuG interpretation should once again provide food for discussion for the ‘Bavarian recommendation’. The new BA interpretation plays an important role in the individual examination and decision as to whether it is reasonable to accept the goodwill offer thus designated
++ We stay on the ball for you, so that you can provide your customers with the necessary basis for their individual decision on whether to accept the offered payment from BSV or to take legal action.
published in Versicherungstipp.online in May 2020
