Non-redemption

from Wikipedia, the free encyclopedia

In insurance, non-redemption is the legal consequences of default by the policyholder when paying an initial premium. The insurance policy will not be redeemed due to non-payment , i. i.e. there is no insurance cover.

If the one-off or first insurance premium is not paid on time, the insurer has the right to withdraw from the contract according to the Insurance Contract Act (VVG) ( Section 37 (1) VVG).

If the insured event occurs before the first premium has been paid, the insurer is not liable to pay benefits, unless the policyholder is not responsible for the non-payment. However, the insurer is only exempt from payment if it has drawn the policyholder's attention to this legal consequence by means of a separate notification in text form or by a conspicuous note in the insurance policy ( Section 37 (2) VVG).

Similar principles apply according to the Austrian Insurance Contract Act (VersVG).

An unredeemed direct debit is referred to as a direct debit return in banking.

literature

Individual evidence

  1. ^ Federal Court of Justice judgment of April 26, 2006, IV ZR 248/04
  2. Hellmut Münstermann: What is the relationship between the extended redemption clause and the provisional cover letter? iww.de, February 6, 2008
  3. ^ Supreme Court Order of April 16, 1997, 7Ob103 / 97s