The Dusseldorf Higher Regional Court has ruled on the insurance law aspects of recourse claims against subcarriers. This decision demonstrates that an insured's entitlement to claim compensation can be safeguarded if the insurer supplies a written declaration authorising the insured to continue the recourse proceedings, irrespective of whether the insurer has compensated the insured.
German law provides several circumstances in which the limitation period in an insurance coverage dispute may be suspended, subject to the case facts. However, to avoid the risk of an insurance claim becoming time barred, assureds should pursue claims diligently. A recent case before the Dresden Higher Regional Court is a useful reminder that suspending limitation periods due to negotiations requires that the insurer is actively involved in the matter.
Motor vehicle liability insurance is mandatory for vehicles admitted to travel on public roads in Germany (the same applies to non-motorised trailers and semi-trailers) and covers damages caused by the policyholder to third parties or their vehicles. However, a Federal Court of Justice decision emphasises that subsidiary clauses in mandatory insurance contracts which limit liability are void unless such exemptions are legally permitted or agreed on by the insurers.
In a notable hull insurance case, the Celle Court of Appeal dismissed an action brought by an assured pleasure yacht owner who had been sailing on the Baltic Sea and ran aground. The case facts suggest that assureds are often unaware of the impact that outdated chart materials can have on hull insurance and liability cover.
The controversial prohibition on passing on commission forbids brokers and insurers from granting or promising special remuneration to policyholders, insured persons or beneficiaries under an insurance contract. According to the legislature, the prohibition was upheld during the implementation of the EU Insurance Distribution Directive into national law over the past three years. However, whether reinsurance remains excluded from the prohibition is unclear.