Do you know that the status of insured persons has been strengthened by law as of 1 January 2022?

The Insurance Policies Act (IPA) dates back to 1908, and the latest version of the law came into force on 1 January 2022. The rights of insured persons have been significantly strengthened and the law has been adapted to the new digital age.

The insured persons now have the possibility to withdraw from a contract within a period of 14 days (so-called right of revocation). In addition, insured persons – even if a contract was agreed for a longer period – can now terminate the contract by law at the end of the third year and annually thereafter. An unwanted longer contractual commitment is thus excluded. Furthermore, the period of limitation for insurance claims was increased: Now the right to claim prescribes five years from the occurrence of the fact that gives rise to the obligation to pay benefits (previously it was only two). Contractual provisions that provide for a shorter limitation period are invalid. This means that insured persons now have more time to discover a damage and file a claim. There are exceptions to all the preceding principles. Each contract must be examined separately with regard to revocation, termination and limitation.

Finally, it is worth noting that a person who sustained a damage now has a direct right of claim against the liability insurance of the person causing the damage. This is a great relief: the person can directly contact the liability insurance of the person who caused the damage and, if necessary, sue it. The detour via the person causing the damage, who e.g. may not report the damage to his or her insurance company or can no longer be found, is no longer necessary. However, it is a prerequisite that the party who sustained the damage knows which liability insurance company is responsible. In addition, the law also provides for an exception here, in that the insurance company can counter any objections and defences to which it is entitled (e.g. gross negligence). After all, the exception by law does not apply to compulsory liability insurance.