Redemption Clause
The redemption clause is a term of the Insurance Contract Act (VVG). In principle, according to Section 37 VVG (until December 31, 2008: Section 38 VVG), insurance cover only exists if the policyholder has paid the premium for his contract, regardless of the date for the material effect of the contract. If payment is made later, liability for the subject of the contract does not come into effect retrospectively, but rather from the time of payment (redemption of the premium).
Since the insurance policy, along with the mandatory premium to be paid, is often only sent to the policyholder after the desired start of insurance, which the insurer is not usually able to do due to the necessary administrative effort, the policyholder has a coverage gap that is relevant to insurance law ( simple or even strict redemption clause) for which there is a legal need to close. In order to close this, the regulation of an extended insurance protection has been incorporated into the general insurance provisions for this case .
The extended redemption clause states that insurance cover is granted from the so-called technical start if the policyholder pays the premium immediately after receiving the policy. From a legal perspective - by virtue of fiction - the material (time of payment of the redemption fee) and the technical start of the contract (start of insurance according to the policy) coincide.
Individual evidence
- ↑ RGZ 155, 103
- ↑ The strict redemption clause
- ↑ RGZ 80, 138
- ↑ The extended redemption clause
literature
- Erwin Deutsch, insurance contract law: a floor plan, 5th edition, VVW Karlsruhe, ISBN 3-89952-177-3
