Start of insurance

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The term commencement of insurance is not clear and can designate three different points in time in connection with the conclusion of an insurance contract , which are more closely differentiated as formal commencement of insurance , material commencement of insurance or technical commencement of insurance .

Formal start of insurance

The formal start ( § 10 VVG ) is the time of the conclusion of the contract , which is legally binding for both parties . As a rule, this is the acceptance of the application by the insurer within the binding period of the application , possibly also the acceptance of an offer from the insurer by the policyholder , also within the binding period. Acceptance takes place by means of the insurance policy or a separate declaration of acceptance, which the insurer explains to the policyholder. Unless otherwise agreed, the formal start is also the due date of the first premium ( Section 37 VVG). It can be agreed in the contract that the contribution is due before, on or after the formal start. Likewise, insurance cover can begin before, at or after the formal start according to the agreement.

Material start of insurance

The material commencement of insurance is the point in time from which an insurer takes over insurance cover for the insured events occurring from this point in time, i.e. from which the insurance relationship exists (commencement of liability, commencement of risk). The start of insurance is also referred to as the material start .

In the event that the material start of insurance has not been expressly contractually stipulated differently, the VVG determines the material start of insurance at 12:00 a.m. (12:00 p.m. in Austria) on the day of the formal commencement of insurance. The material start of insurance cannot simply be before the formal start of insurance ( backdating ), since damage that has already occurred can only be insured if it is still unknown to the policyholder. You can no longer insure a house that is already on fire. Overdue ships can be insured against sinking before the formal commencement of insurance if nothing is known about their fate at the time the contract is concluded.

Technical start

The technical start is the day that is recorded in the insurance application (e.g. March 1, 2010). It is understood that from the technical start of the policyholder a contribution / pay a premium must. If the technical start is before the formal start, i.e. before the insurer's acceptance, the contributions for the time between the technical start and the formal start are to be paid retrospectively to the formal start. Insofar as the material start is after the technical start, because insurance cover only exists from the formal start, contributions are paid retrospectively for periods in which there was actually no insurance cover. However, the contribution can also be used to acquire other rights that can justify payment of the contribution for times before the material start. However, the technical start is not agreed after the material start, as a premium is also charged at the start of the insurance cover. In accordance with the redemption clause , insurance cover (material start) begins with the technical start of insurance if the first premium is paid on time after receipt of the insurance policy.

Usually it is also agreed that the insurance period ( § 12 VVG) begins with the technical start . The insurance period determines the due date of the following contributions, termination and other contractual arrangements and the end of the insurance cover.