Insurance contract: Error in the settlement of claims with insurance company

Published on 02.08.2006

by Johannes Fiala, Lawyer (Munich), M.B.A. (Univ.Wales), M.M. (Univ.), Certified Financial and Investment Advisor (A.F.A.), EC Expert (C.I.F.E.), Banker (www.fiala.de)
Fire Damage Settlement: In connection with a fire loss, the policyholder (PC) reported a loss. The insurer’s employee determined the amount of loss on an inventory fire policy. Because of an alleged underinsurance (objects were outside the building) the insurer reduced the benefit ? the UN agreed (settlement agreement).
Joint error: Later, the insurer and the policyholder recognised a joint error. However, the insurer refused to correct the error and re-bill. The case eventually ended up in the regional court ? later in the Superior Court.
The decision: The judgement of the OLG Hamm (Az. 20 U 100/05) from 14.10.2005 corrected the insurer, who had to pay additional. For connoisseurs of the matter, the decision appears absolutely logical, because if both parties to a contract (here a settlement agreement) are mistaken, this has already led since the introduction of the BGB on 01.01.1900 regularly to an adjustment of the contract (since 01.01.2002 regulated in § 313 II BGB) according to the principles on the discontinuation of the basis of the contract.