Key information for moving to Germany

1/ Residence permit
2/ Vehicle registration

Key information for obtaining insurance in Germany

1/ Automobile insurance

1. Geographic area and persons covered
2. Benefits
3. TPL auto insurance benefits
4. All risk auto insurance benefits
5. What to do in the event of an accident?
6. Rates
7. A short guide to automobile insurance terminology

2/ Multi-risk Home insurance

1. What is home contents insurance and home property insurance?
2. The advantages of home contents insurance and home property insurance
3. What to do in the event of damage or loss?
4. Key points for taking out home contents insurance or home property insurance
5. A short guide to home contents insurance and home property insurance terminology

3/ Health insurance

1. The different kinds of health insurance funds
2. Categories of health insurance
3. Students

4/ Individual TPL insurance

1. What is individual Third Party Liability insurance?
2. The advantages of individual TPL insurance
3. Variations
4. What to do in the event of an accident?
5. Important points regarding individual TPL insurance
6. A short guide to individual TPL insurance terminology

5/ Personal accident insurance

1. What is personal accident insurance?
2. The kinds of personal accident insurance cover
3. Variations of accident insurance
4. Important points regarding personal accident insurance
5. A short guide to personal accident insurance terminology

6/ Legal protection insurance

1. What is legal protection insurance?
2. The benefits of legal protection insurance
3. Variations
4. What to do in the event of a legal problem?
5. Important points regarding legal protection insurance
6. A short guide to legal protection insurance terminology

Your contact

Under the laws applicable in the Länder (states), any person moving into or out of accommodation must make a declaration upon his arrival or departure. This applies to all inhabitants, whether they be German citizens or foreigners (citizens of the EU). Failure to comply results in a fine.

This declaration must be made, according to the Länder, in a period varying between one week and two weeks. You will receive the necessary forms from the Central Registry (Einwohnermeldeamt).  If you are a renter, this form must be signed by your landlord.  You will then receive an official confirmation of registration.

Several days later, you must go to the Town Hall (Rathaus) with the necessary forms, your passport and two identity photos.

If you are employed, you must provide an employment contract, an employment certificate and a health insurance certificate. If you are a student or intern, you must provide a university registration certificate and a parental financial responsibility declaration.

You will then obtain a residence permit (Aufenthaltserlaubnis).

When you move to Germany, you must register your vehicle in Germany.

In order to change the registration of your vehicle, you must have a technical check at the TÜV, which will carry out a technical appraisal (Gutachten) or a complete assessment (HU). In order to facilitate this procedure, you may wish to obtain a European conformity certificate (COC) from your dealer or carmaker.

An electronic insurance certificate

If you wish to register your vehicle, you must show proof that the vehicle is insured (insurance certificate). The insurance company provides its customer with an electronic insurance certificate and provides him with a 7-digit code that enables the registration office to identify the certificate in question in the data bank.

You can then go to the grey card office (Zulassungsstelle), where you will obtain your new grey card (Fahrzeugschein) containing your registration number. You can then obtain your new licence plates by providing the following:

• The original copy of the technical appraisal (Gutachten) or the general inspection (HU)
• The electronic insurance certificate (eVB code)
• Your passport (with your new address in Germany) or the original copy of your residence declaration (Anmeldebestätigung)
• Your previous licence plates and the vehicle’s documentation.

In Germany the technical control must be repeated every two years.

Taxes to pay: Your vehicle registered in Germany will be subject to vehicle tax, the amount of which depends on the vehicle’s certified pollution standard and its motor size. This is an annual tax, payable in advance. Administrative costs must also be paid during the registration procedure. There is, however, no additional traffic tax.

In Germany, the VAT on the purchase of vehicles is 19%.

• Third party liability auto insurance

Every person wishing to drive a motor vehicle in Germany must take out third party liability auto insurance. This is the law. This is also the case for motorised bicycles. The traffic code stipulates: in the event of an accident, the driver responsible for the accident (whether car or motorcycle) is liable. Since the principle of causal responsibility is applied to driving (responsibility resulting from the risk created), a person can be required to pay an indemnity even if he is not directly responsible for the accident. The TPL insurance is based on the principle that the insurer is required to accept the risks and in principle does not have the right to refuse requests for cover. However, the requirement to accept risks is limited to the minimal legal insurance cover. TPL auto insurance covers justified requests for indemnity and protects against non-justified claims (even in court). The amount of indemnity paid by the insurer will never exceed the amount insured in the policy.

The minimum legal cover in Germany is 7.5 million euros for bodily injury, 1 million euros for material damage and 50,000 euros for non-material damage. It is therefore wise to take out insurance for higher amounts. In terms of material damage, the cover can go up to 100 million euros.
 

• Material damage insurance for a vehicle (Casco)

Material damage insurance for a vehicle covers damage, destruction or total loss of a vehicle as the result of events covered by the insurance.

There is a difference between total or partial all risk insurance cover. Partial all risk insurance covers mainly damage caused by theft, fire, lightning, explosion, storm, hail, flood, wild game accidents and glass breakage. 

Total all risk insurance covers, in addition, damage caused to the insured vehicle in the event of an accident even if it is the responsibility of the policyholder, as well as damage caused by vandalism. This is therefore particularly important for expensive or new vehicles.

Unlike third party liability auto insurance, all risk insurance is optional. It covers: costs of repair and the replacement value of the vehicle, with deduction made for its residual value in the event of total loss. Total all risk insurance also covers accidents caused by a driver who is not insured or whose insurer is free from any compensation requirements – for example, abroad.

Geographic area and persons covered

The geographic area for TPL auto insurance is established by law. It includes all European countries as well as those that have signed the European Economic Area treaty, such as for example the Canary Islands and the Azores. There can also be other rules for all risk insurance.

It covers those who take out the insurance, the owners of the vehicle and any other driver allowed to drive the insured vehicle. It is important to know that, in the event of an accident – with the exception of the driver – all the passengers in the vehicle can receive compensation from the TPL auto insurer of the vehicle involved in the accident.

• TPL auto insurance
  TPL auto insurance compensates a victim for damage resulting from an accident. With this compensation the victim should be in the same financial situation as before the accident. However, the TPL auto insurance covers all the costs of the accident only when there is one single person responsible for the damage. In the event of shared responsibility, the amount of the compensation will be reduced accordingly. The victim will also receive less compensation if he was not wearing a seat belt or, in the case of a motorcyclist, was not wearing a helmet.
   
• Vehicle damage insurance
  In the event of an accident to the insured vehicle, the casco insurance provides compensation for the costs of repair or, if there is total loss or theft of the vehicle, covers the cost of the purchase of a vehicle of similar age and nature.

TPL auto insurance covers the following costs:

• Material damage caused to the vehicle
  • Repair costs: This involves all costs necessary to repair the damage caused to a vehicle involved in an accident. For small accidents it is sufficient to present a quotation. For major damages to the vehicle’s body, it is preferable to ask for the opinion of an expert. Regarding the appointment of an expert, contact should be made with the insurance company in order to agree on the costs involved.
     
  • Depreciation: If the vehicle has been very seriously damaged, it is possible to request compensation for depreciation costs. The conditions: the vehicle must be less than five years old, must never have been involved in an accident and must have been driven less than 100,000 kilometres. Depreciation is determined by an expert.
     
  • Total loss: If the repair costs are more than the replacement value of the vehicle and repair is therefore not cost-effective, the insurer will generally provide the policyholder with compensation to purchase an equivalent vehicle with deduction made for the residual value of the damaged vehicle. If the vehicle was less than one month old and had driven less than 1,000 kilometres, the insurer will cover the cost of purchasing a new vehicle, with deduction made for the residual value of the damaged vehicle.
     
• Indirect losses resulting from an automobile accident
  • Loss of use: During all the time when the vehicle is not available (for example, while repairs are being carried out), the victim of the accident will receive a daily indemnity.
     
  • Replacement vehicle: During the period of repair or until a new vehicle is purchased, the victim can choose to have a replacement vehicle instead of daily indemnities. However, total costs for a rental vehicle are paid only under certain conditions. Before choosing this option the policyholder should check with the insurance company regarding the conditions applicable to vehicle rental.
      
  • Legal fees: If the services of a lawyer are required, these costs are generally covered by the insurance company of the person responsible for the accident.
     
• Bodily injury
  • Medical treatment: The costs of justifiable medical treatment are reimbursed to the victim if they are not covered by a public health system or any other body. This also applies to costs regarding special needs (e.g. orthopaedic material, special diets or assistance services).
       
  • Loss of revenue: The TPL auto insurer also provides compensation for loss of revenue. If the injuries are so serious that the victim will never be able to return to his previous work, the insurer will sometimes cover the costs of professional reinsertion or pay an annuity.
     
  • Pretium doloris: The victim is not only compensated for material damage but may also receive compensation for moral damage, pretium doloris, for suffering he has had to endure. The amount of this compensation depends on the severity of the injuries, the recovery period and the kind of care needed as a result of the accident.
     
  • Burial costs: In the event of a fatal accident, the insurer of the responsible party covers the costs of appropriate burial.
     
  • Payment orders: If a person who dies as the result of an accident was legally required to make certain payments (e.g. as spouse, father, mother, son or daughter), the members of the family may request compensation for these financial losses.

The range of benefits can vary from company to company and according to the chosen tariff. Insurance companies offer, under certain conditions, reimbursement for the new value during a period of 6 to 12 months after the first registration, or sometimes even for a longer period.  Partial all risk insurance often covers not only accidents caused by collision with wild game but also with other animals.  Certain insurance extensions are not essential but can sometimes be very useful.  Before taking out insurance, it is wise to make a detailed analysis of the personal risks and then to study the quality-price relationship of different insurance companies.

The parts and accessories covered by all risk auto insurance

The insurance covers the vehicle as well as the spare parts and accessories set out in the general auto insurance conditions on the condition that they conform to the rules of the road. The general conditions for auto insurance define the spare parts covered without payment of a supplement or covered up to a certain amount, those that require the payment of a supplement and those that are excluded. Generally covered are: chains, equipment for breakdowns, baggage carriers, child seats and a set of summer and winter tires. Mobile telephones and GPS systems are excluded by most insurance companies. In general, spare parts and accessories must be directly attached to the vehicle, or locked inside the vehicle, in order to be covered.  

Each year there are some 2.3 million accidents on our roads resulting in more than 400,000 injuries and some 4,000 deaths. Appropriate behaviour at the scene of an accident can be of help.

The main rules in the event of an accident are:

1. Turn on emergency flashing lights.
2. Clear the road or set out the emergency triangle.
3. Call the emergency services:
• Ring 112 if there are people injured or trapped in the damaged vehicle,
• In the event of minor material damage, call the auto insurance emergency number – 0800 NOTFON D or 0800 6683663. You will be automatically connected with the call centre that operates 24 hours a day. These calls can be traced by satellite.
• Use the emergency telephone if there is one nearby.

If the vehicle is only slightly damaged, the road should be cleared so that traffic is not impeded.  It is often not necessary to call the police in the event of minor damage. It is important to note the place and time of the accident and the licence plate numbers of the vehicles involved, the name and address of the other driver as well as witnesses. For this purpose you can use the « European accident report » form, which insurance companies will send you free of charge. Also important to remember: never sign a statement accepting responsibility.

If the vehicle having caused the accident cannot be identified (having left the scene of the accident, for example), or if one of the vehicles involved is not insured, the victim can obtain compensation from a guarantee fund: the Association for Assistance to Victims of Road Accidents, VereinVerkehrsopferhilfe e. V., Willhelmstr. 43/43G, 10117 Berlin.

The automobile insurance call centre (tel. 0180-25026) will give you information about the insurance company of the other driver. It is not necessary to wait until the driver responsible for the accident files a claim. The request for compensation can be made directly with the insurance company of the responsible driver.

The premium for TPL auto insurance or all risk insurance depends on various criteria such as, for example, the region in which the vehicle is registered, its model and the number of years of accident-free driving. The data used to calculate the premium are based on claim statistics provided by the insurers. The rate will be higher if the statistics show that a certain model has a greater accident frequency or higher repair costs and if the driver lives in a region with a high number of vehicle thefts or accidents. The average premium is between 150 and 300 euros. For expensive vehicles, you can make savings in all risk insurance by choosing a deductible. When you purchase a second vehicle, make the calculations and transfer the policy with the better bonus onto the new vehicle.

Wise drivers will find out the expected premium cost when they buy their first vehicle. Choosing a vehicle in a different category can result in savings of hundreds of euros every year.

Bonus for accident-free driving

A bonus is available for drivers with years of accident-free driving.  A driver who insures a vehicle for the first time will be put in category 0 and must in general pay 230% of the base premium (100%). After one year of accident-free driving, the premium is reduced to the base of 100%. After 20 years of accident-free driving, the driver generally receives a bonus of 30%.  On the other hand, the bonus is reduced in the event of an accident. The policyholder must “earn” his bonus anew.

Each insurance company has its own way of ranking drivers for this bonus based on the number of accidents. For minor accidents it is often better to pay the repair costs oneself and to keep the bonus.

Additional information about automobile insurance, premiums and road safety can be found at the web site www.versicherung-und-verkehr.de.

• The obligation to accept risks
  The obligation of the insurance company to accept risks, for example regarding TPL insurance.
   
• Minor accident
  Small-scale, inexpensive damage.
   
• Preferential rate for civil servants
  Preferential premium rate given to civil servants and other government employees.
   
• Certificate of insurance cover
  Guarantee of insurance cover.
   
• Electronic certificate of insurance cover
  The electronic certificate gives proof of insurance as required by the registration offices.
   
• Owner of the vehicle
  The person who uses a vehicle for his own purposes and has all the necessary authority to dispose of the vehicle.
   
• International insurance card / green card
  Proof of insurance required for travel abroad.
   
• Third party responsibility
  Obligation to compensate a third party for injury or damage that you cause to him.
   
• Third party liability insurance
  Accident insurance covering justified requests for compensation of third parties and excluding some others.
   
• All risk insurance / Casco insurance
  This insurance covers damage caused to the vehicle of the policyholder, its destruction or loss.  The guarantee varies depending on whether it is all risk or partial risk cover. 
   
• Clauses
  These are special agreements in an insurance policy.
   
• Automobile insurance
  Includes TPL auto insurance, all risk insurance and multi-risk automobile guarantee policy (assistance booklet).
   
• The Mallorca policy
  Supplementary insurance for rental vehicles abroad. If the amount of compensation claimed following an accident is not covered by the TPL auto insurance of the rental vehicle, personal TPL auto insurance will cover the accident up to the amount specified in the territorial terms of the policy. 
   
• Scooter insurance
  Only scooters whose insurance is proved by a sticker may be used.
   
• Lack of use
  The victims of an accident may claim compensation from the person responsible for the accident for their inability to use their vehicle while it is being repaired if they have no replacement vehicle at their disposition. The daily indemnity depends on the model of the vehicle and is between 27 and 99 euros. 
   
• Obligations
  Legal or contractual obligations of the insurance companies.
   
• Ombudsman / mediator
  Independent mediating body for policyholders’ claims.
   
• Compulsory insurance
  Insurance that is required by law. TPL auto insurance is compulsory insurance.
   
• Premium
  Another term for the insurance subscription payment.
   
• Claim
  Any event that could result in an insurance benefit being paid. 
   
• Bonus for accident-free driving
  A premium reduction given to drivers on the basis of the time during which they have not had an accident.
   
• Compensation
  On the basis of the rules in effect regarding third party liability, compensation must be paid when one causes harm to a third person. This amount is intended to compensate for the harm incurred.
   
• Pretium doloris
  Compensation in cash in the event of bodily injury.
   
• Deductible
  Fixed amount or percentage that the policyholder must pay in the event of an accident.
   
• Rate
  Term for the various categories of rate for an insurance policy.
   
• Tariff zones
  Zones with different risks at the regional level for certain kinds of insurance, for example storm insurance or auto insurance.
   
• List of spare parts
  List of spare parts and accessories covered by all risk insurance without a supplement or only with a supplement.
   
• Total loss
  Serious material damage that cannot be repaired or for which repair is not financially viable given the nature of the accident. In the event of total loss, the compensation paid by the insurance company corresponds to the replacement value of the vehicle, with deduction made for its residual value. 
   
• Rate according to model
  Specific term for auto insurance. The rate for a given model is based, among other considerations, on the classification of the vehicle model in question, which in turn depends on its accident history.
   
• List of model classification
  List of all passenger vehicles and their classification by model.
   
• Application for insurance
  Request to take out an insurance policy.
   
• Insurance duration
  The duration for which the insurance policy has been taken out.
   
• Event
  Accident for which the insurer is required to provide compensation.
   
• Territoriality
  Geographical area for which insurance cover is valid.
   
• Insurance policy
  Policy or certificate proving the existence of an insurance agreement.
   
• Insured amount
  Maximum amount covered by the insurance policy.
   
• Insurance policy tax
  Tax on the premiums.
   
• Contractual penalty
  Penalty to be paid by the policyholder if he has tried illegally to obtain benefits for which he is not entitled (for example, a preferential rate given for vehicles parked in a garage). 
   
• Provisional insurance certificate
  Insurance cover regarding a provisional insurance policy.
   
• Replacement value
  Price to be paid for the purchase of an equivalent second-hand car as of the day when the accident occurred. 

Multi-risk home insurance (Hausratversicherung) is not compulsory but is strongly recommended.

Housing costs are high. A large proportion of people’s salaries is devoted to the financing of the construction of an individual house or the purchase of an apartment, or to rent. The interior furnishings are also very expensive. It is essential to insure one’s property against, for example, damage caused by a washing machine leak, a break-in, a storm that rips off the roof or a fire that destroys the apartment.

• Home contents insurance
  This insurance is recommended for renters as well as owners. Unless there is a contrary indication, it generally covers damage resulting from fire, water, storms with wind above force eight, hail, break-ins and vandalism. Cover is extended to furniture, curtains, linen, contents of drawers, electrical appliances, musical instruments, sporting equipment, etc.
   
• Home property insurance
  The owners of a house or apartment should also take out home insurance. This covers damage resulting from fire, water, storms with wind above force eight and hail, and insures the building as well as all fixtures including flooring, central heating and bathroom installations.

Important: These facts and advice about home contents insurance and home property insurance in Germany are provided only for information purposes. For legal dispositions, please consult the insurance conditions provided by your own insurance company.

• Home contents insurance
  The insurance covers the replacement value of goods that are destroyed or lost. Expensive items including cash, jewellery, fur coats, securities or art can be insured up to a certain percentage of the sum insured (for example 10%). In addition, this property is not just covered in your home but also during travel, in a hotel, at a secondary residence or when staying with friends. The duration of such stays must not exceed three months. If you own expensive items such as collections, antiques or paintings, you should take out special insurance. You can also purchase additional protection against damage caused by lightning or breakage of windows. There are special conditions regarding bicycles: when you leave a bike you must always ensure that it is well locked. At home the bicycle must be kept in a special location if your building has one. The bike is insured only if you take out additional insurance – often an extension to your home contents contents insurance. Note: bicycles are not generally covered automatically under home contents insurance. 
   
  The cost of home property insurance depends on the personal situation, the amount to be insured and the location of the residence. Standard cover for property valued at 50,000 euros costs less than 100 euros per year. Many insurance companies also offer insurance with a deductible, which lowers the cost. 
   
• Home property insurance
  The owners of a building must be well covered. If the building is destroyed, the insurance company will pay for the cost of new construction according to local practices. If the building is damaged, it will pay for repair costs. If the rooms cannot be used, the insurer will cover – for a certain period of time, for example six or 12 months) – losses of rental income or the rental value according to local practices, on the condition that these buildings were not occupied by the owner himself.

In general, the various risks (fire, water damage, storms with wind above force eight and hail) are covered by multi-risk home insurance. It is also possible to take out separate insurance policies for all these risks. 

One should not overlook fire insurance since a fire often destroys everything. Fire insurance is often a requirement for obtaining a mortgage. This insurance can be taken out separately or as part of multi-risk insurance policy (storm, hail, water damage, etc.). It covers damage caused to the building and to fixtures such as carpets, as well as costs of demolition and clearing.

Storm insurance can also be desirable in view of the serious climatic events that have occurred in all parts of Germany during recent years. We also recommend water damage insurance.

For an additional cost you can also take out insurance against damage caused by natural elements, which can be included in home property insurance. It covers, among other things, damage caused by earthquakes, landslides and flooding (following run-offs or torrential rain).

The cost of property insurance or multi-risk home insurance depends on the age and kind of construction of the building as well as risks associated with its location. Standard multi-risk insurance for an older house with 140 square meters of living space costs around 260 euros per year; for a new house the premium is around 230 euros. In principle it is also possible to take out insurance with a deductible.

• Try to limit the damage without putting yourself in danger.
• In the event of fire, call the fire brigade immediately.
• Inform the police about any break-ins or thefts.
• Block your bank accounts or other important documents.
• Report a bicycle theft to the police, including the make, model and identification number.
• In the event of water damage, close the main water source immediately. If you do not know where it is, obtain this information from the building’s owner or caretaker and find out how to use it.
• Have radiators and pipes thawed by qualified professionals.
• Provide the insurance company with any important information and receipts.
• Keep damaged or destroyed property for future claims.

• Always reply in a detailed and truthful manner to the questions on the insurance application form. In order to be well reimbursed in the event of a claim, the amount to be insured must be carefully determined. Home contents insurance depends on the value of the inventory in order to determine the amount to be paid for new purchases.
   
• If there is a disparity between the value of the property and the amount insured, you might receive an unpleasant surprise; the insurance company will determine that there is insufficient insurance and will reimburse only part of the damage. This risk can be avoided by insuring each square meter of your home for approximately 650 euros. The premium for home property insurance also depends on the location of the home.
   
• Self-employed and other people who use part of their home for professional work often have very expensive computer equipment. The home contents insurance for this part of the home will be more expensive than for rooms used only for daily living.
   
• If you undertake renovation work that requires scaffolding, you must inform your insurance company in good time since the presence of scaffolding increases the risk of accident.
   
• Regarding home property insurance, it is important to choose the right kind of insurance. It is important to choose a policy that automatically covers changes in the value of the building (added value). You can then be sure that, in the event of a claim, the insurance company will reimburse you at full replacement value. In order to avoid problems arising from insufficient insurance, the base amount insured must be correctly calculated.
   
• There are different ways of determining the value of a building. In case of doubt, seek help from a qualified expert. The safest way is then to fill out the application for insurance in the presence of your insurance agent. Inform your insurance company as soon as possible regarding any changes in the value of the building resulting from extensions or renovations.

• Base amount insured
  The sum must be calculated in order to establish the value of the building. Automatic adjustment of this amount in keeping with increases in the building’s value is important since, in the event of a claim, the insurance company will reimburse you for the new value calculated on the basis of local practices.
   
• Modular approach
  The policyholder himself determines what insurance components to include in his policy – for example, home property insurance.
   
• Indemnity ceiling
  Maximum compensation to be paid by the insurer. Precious objects, for example, are insured to a maximum of 10% of the amount insured.
   
• Non-intentional fault
  If the policyholder is negligent, the insurance company can refuse to pay full or partial compensation or could even cancel the policy. Examples of non-intentional fault include forgetting to lock the door or close the windows when leaving the house, thereby making it easier for burglars. 
   
• Contents
  This includes not only furniture, clothing, curtains and electrical appliances but also books, records, lawnmowers, camping equipment and toys.
   
• Exclusion from cover
  These are events set out in the policy, which are not covered by the insurance.
   
• New value
  Household furniture: cost of purchasing new items;
  Building: new construction value of the building on the basis of local practices.
   
• Deductible
  Agreed amount or percentage that the insured will pay himself in the event of a claim.
   
• Insufficient insurance
  If the amount insured for the building or the property is insufficient, the insurance company will only pay part of the costs resulting from damage.
   
• Insured amount
  Maximum amount that the insurance company will pay in the event of a claim.

Compulsory medical insurance – like retirement, unemployment, accident and dependency insurance – is an integral part of the German social security system.  This is compulsory insurance for all employees whose annual income is less than the affiliation ceiling as well as for many other persons.

One of the purposes of compulsory medical insurance is the protection, recovery or improvement of the state of health of insured persons (Article 1, Volume 5 of the social security Code).  All insured persons have the same rights to services defined in Volume 5 of the social security Code and limited by Article 12 of Volume 5 of the social security code).

In accordance with the principle of solidarity, and unlike the practices of private health insurance, compulsory affiliation and the calculation of the health insurance premium are not determined on the basis of risks associated with the age, sex or state of health of the insured person.  Premiums are rather calculated as a percentage of personal income.

For the insured person, the distinction between primary health insurance funds and free health insurance funds is no longer of any importance since, in accordance with Article 175, Volume 5 of the social security Code, there is freedom of choice regarding the choice of a health fund.  Compulsory health insurance is now the responsibility of:

• The local primary health insurance funds (AOK)
• The company health insurance funds (BKK)
• The professional or artisanal health insurance funds (IKK)
• The free health insurance funds
• Mining health insurance funds

In addition, there are health insurance funds that are included in a separate social security system such as

• Farmers’ health insurance funds

• Compulsory insurance
  The category of compulsory policyholders is determined by Article 5, Volume 5 of the social security Code and by Article 2 of the health insurance law for agricultural professions.  Persons belonging to this category may, under certain conditions, request exemption from compulsory membership in the compulsory health insurance system.  Persons mentioned in Article 6, Volume 5 of the social security Code are not affiliated to the compulsory system; these are blue collar workers or employees whose income exceeds the affiliation ceiling.
  
  Affiliation ceiling: the salary level that makes insurance compulsory.  It is 75% of the social security contribution ceiling.  Since this is revised annually, the affiliation ceiling also changes every year. 
  
  Contribution ceiling: the salary that serves as the base for contribution calculation and the amount up to which social security contribution is compulsory.
  
  The contribution ceiling and the affiliation ceiling are identical in terms of social security.
   
• Optional or voluntary insurance
  The compulsory health insurance system also provides the option of insuring with a private health fund (Article 9, Volume 5 of the social security Code).  This option is designed mainly for persons who are excluded from the compulsory system, such as for example an employee who decides to purchase his own insurance.  In view of the different conditions and timing for affiliation, persons who are interested in this option should obtain information in good time from a health fund.
  
  All persons living or residing in Germany must have health insurance (see the legal insurance requirement chapter in Article 193, paragraph 3, of the German insurance law).
  
  In addition to the compulsory affiliation to a health insurance fund, there is also a requirement to take out dependency insurance in conformity with Volume 11 of the social security Code.  The principle of this provision is that dependency insurance flows from health insurance.  This can be done either by voluntary affiliation with a public health fund or by affiliation with a private health fund.  Persons who are not insured must pay an increased retroactive amount.

All students in Germany must be covered by health insurance and by dependency insurance. They cannot register at university without proof of such cover. There is a distinction between:

• Students from EU member countries, EEA member countries or Switzerland
  Social security agreements have been signed with these countries. In order to register with a school or university, you will need a European social security card, which you can obtain from the health fund with which you are affiliated in your country of origin. This attestation will enable you to obtain from a German health insurance fund the document that is required for your registration, which is the German social security certificate. This German health fund from which you obtained the document will cover you during your entire stay in Germany. If you belong to a private health insurance fund, you must provide written proof from this body that you are covered by health insurance during the duration of your studies.
  Important: The health insurance travel certificate is not recognised!
   
• Students from countries other than the above-mentioned
  In order to register at a university, you must provide a health insurance certificate from an official German health fund. For students, the health insurance fee, including dependency insurance, is the same at all the health funds.
  Important: “Student Health Insurance” is a preferential fee of the voluntary health insurance system and applies only to students registered at a university or a technical school.  The amount of the fee for health insurance, including dependency insurance, is the same at all the health funds.

This insurance terminates at the end of the semester during which the student reaches the age of 30 or completes his 14th semester of study.  After this time, insurance cover may continue if the kind of education, family reasons or personal reasons, notably conditions for access to an establishment of higher learning, justify exceeding the age limit or the duration of study.

If you are participating in the SOCRATES/ERASMUS programmes, you must also follow the requirements as set out above.  For these programmes you will often have a direct contact available. If not, there is an international office in all the universities (Akademisches Auslandsamt), where you will find all the necessary information for the country. A list of links is available at http://www.akademisches-auslandsamt.de; http://www.eu.daad.de/kontakt/koordinatoren.

You will find additional information regarding health insurance in Germany on the web site of the Federal Association of Health Insurance Funds (Deutsche Verbindungsstelle Krankenversicherung – Ausland); www.dvka.de.

Whether it is a friend’s damaged stereo system, a pedestrian hit by a bicycle or a postman bitten by a dog: any person causing harm to another has unlimited and life-long responsibility. According to the German Civil Code: “Any person causing harm to the property, health or life of another person is required to compensate him”.

A person who, by his own negligence, injures another person so seriously that the latter can no longer carry out his professional work must expect to pay compensation amounting to several million euros. This financial risk is covered by individual third party liability insurance. It is therefore very important insurance and should be taken out by all households.

Important: These facts and advice about individual third party liability insurance in Germany are provided only for information. For the legal dispositions you should consult your insurance company.

Individual TPL insurance cover is valid 24 hours a day and also for trips abroad of less than one year. The insurance provides reimbursement for the costs of property damage, other losses and bodily injury up to the insured amount. It covers the whole family, including unmarried children and adult children still at school or undertaking initial professional training (apprenticeships and higher studies). The annual premium is around 90 euros.

The two spouses are covered if both their names are included in the insurance policy. Important to know: children below 7 years of age (regarding road accidents) or 10 years of age are not responsible for any damage they might cause. If the parents of a young child have not provided appropriate supervision, their TPL insurance will compensate the victim. 

Since all requests for compensation are not justified, the insurance company retains the right to defend the policyholder against unfounded claims and provides him with a passive legal protection guarantee. For the policyholder to be compensated for damage incurred, even if the person responsible is not insured, there must be an extension in the policy covering non-recoverable debts, an option that some insurance companies already include in their basic policy. 

The basic principle of individual TPL insurance is the requirement for prudence. For example: if a rental agreement requires a person to clear the pavement of ice and snow, he is responsible if a pedestrian slips and breaks his leg. Third party liability also applies in the case of:

• Building contractors. As is the case for architects and artisans, building contractors are required to ensure safety on their work sites. If someone is injured on the site (e.g. from a falling rock, or other cause), the victim is entitled to seek compensation from the contractor. 
   
• Animal owners. If a dog bites a neighbour’s child, the owner of the animal must cover the resulting costs even if the incident was not his fault.
   
• Athletes. If a surfboarder injures a swimmer or a roller-skater hits a pedestrian, they are responsible – just like a snowboarder who runs into a skier.

Depending on your kind of risk, you can choose among different TPL options such as building owner’s TPL, building contractor’s TPL, water pollution TPL for owners of a fuel depot, company owner’s TPL or animal owner’s TPL for the owners of dogs or horses.

• Declare the accident within one week at the most.
• Describe the circumstances of the event precisely and truthfully.
• Do not make any payment to the victim without the agreement of your insurance company and let your insurer make any statements about your obligations.
• Object immediately to any requirement to make a payment and inform your insurance company immediately.
• Inform your insurance company about any court charge, requirement to pay legal costs or any other charge against you. The same applies in the event of arrest, provisional orders or emergency orders.

Before taking out individual TPL insurance, you should analyse carefully your third party liability risks. If a new risk appears – a dog, for example – it should be covered through a policy extension. Another important point: the amount of TPL insurance should be at least 3 million euros for bodily injury and property damage.

• Defence against unfounded claims
  The insurance company will defend the policyholder against any non-justified claim or demand for compensation. 
   
• Exclusion
  All TPL insurance policies contain exclusions. In these cases the risk mentioned is not covered by the insurance company. These include self-inflicted injury, intentionally-caused damages, compensation for lost property, fines and penalties, and damage caused by the use of a motor vehicle (for which TPL auto insurance is required).
   
• Territoriality
  This term refers to the countries covered by the insurance policy. Individual TPL insurance cover is international – limited to one year for stays abroad – and valid 24 hours a day.  
   
• Third party liability
  This is the requirement to pay compensation for harm caused to a third person, the conditions of which are determined by law. 
   
• Co-insured persons
  Individual TPL insurance covers all the members of a family, including unmarried children and adult children still going to school or following professional training (apprenticeships or higher studies).
   
• Compensation
  The person having caused harm to a third person must pay financial compensation to the victim.
   
• Amount insured
  This is the maximum amount that the insurance company will pay in the event of a claim.

Risks of accidents are everywhere, whether it is the trip from home to work, at a building site, during renovation work at home, doing spring-cleaning or during leisure time. Sometimes the victim is only slightly injured but sometimes the injuries are serious and have long-term effects.

An accident refers to an external and unexpected event resulting in injury to the policyholder. Personal accident insurance is applicable in the event of bodily injury, serious mental injury or fatal injury.

Accidents of this kind can result in significant financial consequences, for example if a house or car has to be re-fitted for a person with reduced mobility or in need of assistance. People who want to insure themselves against such risks should take out personal accident insurance. This pays an agreed sum of money to the policyholder, who can use it in any way regardless of the actual costs or losses.

The cost of personal accident insurance depends on the kinds of insurance that one takes out and the amount of money involved. The annual premium for a standard policy for an adult is around 150 euros.

Official accident insurance is not sufficient

Workers and employees are automatically covered by official accident insurance that is paid for by their employer. However, they often feel that this cover is insufficient, without knowing that official accident insurance covers only those accidents that occur at the work place or during the trip between home and work. If you are injured at home or during your leisure time, you are not covered – but one accident out of every two occurs during “private life”.

Personal accident insurance provides cover 24 hours a day anywhere in the world. It pays compensation notwithstanding amounts paid by TPL insurance, total or temporary invalidity insurance, health insurance or official accident insurance.

Can personal accident insurance replace total or temporary invalidity insurance?

Absolutely not. Accident insurance is not the same as total or temporary invalidity insurance. One cannot replace the other. Invalidity insurance covers incapacity resulting from an accident or illness, but only for professional incapacity higher than 50%. 

Accident insurance covers the consequences of an accident. This applies to any permanent incapacity, however small, whether or not the victim can continue to work. The amount of compensation depends on the amount provided for in the policy and the permanent physical or mental incapacity of the victim.

If, for example, an office worker is not able to walk as well as before, he can still continue to work. In this case he would not be compensated by invalidity insurance for professional incapacity. Accident insurance, on the other hand, will take into consideration his reduced physical ability and will pay compensation.

Important: These facts and advice regarding personal accident insurance are for information only. For the legal dispositions you should consult your insurance company.

• In the event of invalidity
  The essential cover for personal accident insurance concerns the risk of invalidity resulting from an accident. The term invalidity refers to a permanent decrease in a person’s physical and/or mental capacities. Personal accident insurance provides compensation:
  • If the invalidity occurs during the year following the accident;
  • If a medical doctor determines invalidity during three months following this deadline;
  • And if the policyholder has filed a claim with his insurer at least 15 months after the accident.
  
  The amount of compensation depends on the degree of invalidity and the sum contained in the policy. The degree of invalidity is determined by the permanent incapacity scale, which is an integral part of the insurance policy.
  
  Example: Hans Müller has taken out an insurance policy for an insured amount of 100,000 euros. He loses an eye as the result of an accident. According to the permanent incapacity scale, this corresponds to a level of incapacity of 50%. As a result, he will receive compensation corresponding to 50% of the insured amount, that is to say 50,000 euros.
  
  This compensation will be paid in any event, even if his invalidity results from a workplace accident for which he has already received compensation from official accident insurance or if it is the result of a car accident for which he can obtain compensation from the TPL auto insurance of the person responsible for the accident.
  
  In order to increase the amount paid in the event of invalidity, one should either increase the amount provided for in the policy or else agree on an increase in the amount of compensation depending on the degree of invalidity. One can also take out “dynamic” accident insurance, in which case the amount insured and the annual premiums are recalculated each year on the basis of a pre-established percentage. The choice depends on the individual needs of the policyholder. Advice should be sought from the insurance company or broker.
   
• In the event of death
  This cover is included in many basic policies for a modest amount of compensation – 2,500 euros, for example. It is paid if the victim dies within a year following the accident.
   
• For transitional assistance
  Transitional assistance is designed to help victims of serious accidents finance, for example, the cost of medical care. It is paid:
  • If the accident occurred within the last six months;
  • If the victim has a level of invalidity greater than 50%;
  • If this decrease in capacity is permanent.
     
• Daily payment
  In the event of incapacity resulting from an accident, the insurance pays daily compensation as long as medical treatment is necessary. In the event of partial professional incapacity, the amount is decreased. This form of payment is particularly useful for self-employed persons, who would otherwise lose their entire revenues.
   
• Daily payment in the event of hospitalisation
  In the event of hospitalisation resulting from an accident, the insurance pays daily compensation from the date the victim is admitted until he leaves the hospital, with a maximum limit of two years.

• Individual bodily injury accident insurance
  This is the classic form of personal accident insurance. Only one person is covered. Depending on the insurance company, there can be several different kinds of cover.
   
• Family accident insurance
  This variation covers a whole family, which reduces the costs for the insurer. As a result, family insurance is less expensive than individual insurance.
   
• Individual child insurance
  This form of accident insurance is designed specifically for children. After they reach the age of 18, it automatically becomes individual adult insurance. The main feature of individual child insurance is the wide range of risks covered – for example, up to the age of 10 it also covers some kinds of poisoning. In general the policyholder of individual child insurance is one of the parents. If he or she should die, the insurance policy will be continued free of charge until the child reaches adulthood.
   
• Child invalidity insurance
  This insurance covers the risk of invalidity of a child resulting from an illness or accident. If the level of invalidity is at least 50%, the insurance company will pay a monthly annuity as specified in the policy. This will be continued as long as the degree of invalidity is certified by an invalidity card.
   
• Collective accident insurance
  In order to take out collective accident insurance, several people must wish to ensure themselves through one single policyholder – for example, an employer, an association or an organiser. In general terms there must be at least three insured persons. The premium depends on the number of persons insured. It is much less expensive than individual insurance.
   
• Leisure-time accident insurance
  This is a special form of insurance that provides protection against the risk of accidents away from the workplace. It is therefore not available to housewives, retired persons or the unemployed.
   
• Accident insurance with repayment of premium
  This accident insurance is linked to a savings product. At the termination of the policy, the insurance company reimburses all the premiums paid after deduction for the insurance tax and supplements for down payments, separate from any compensation paid during the duration of the policy. There is also a profit-share involved.
   
• Accident insurance for seniors
  This is a special form of insurance that includes the different needs of seniors. It is a combination of payment in cash (annuity or single payment) and in-kind services (assistance) including emergency call service, delivery of meals, delivery of shopping, cleaning, laundry, etc.

• The amount insured must be sufficient, particularly for disability.  An individual’s needs should be determined with the help of a specialist adviser. The amount insured or the disability indemnity are often calculated on the basis of the annual income of the policyholder and are the equivalent of five to six times this amount.
   
• If a policy has a high rate of progression, the policyholder should be careful not to have an amount of insurance set too low. Progression only provides excellent cover in the event of total invalidity and after certain levels of invalidity. If you wish to be covered for lower levels of invalidity, it is better to agree on a higher base amount and a lower rate of progression.
   
• If the policy includes compensation in the event of death, or if you wish to insure against this risk, you must name beneficiaries. You can do this also after you have taken out the policy.
   
• It is important to read the small-print clauses in the policy that often set out the general conditions. Here you will find, for example, information about the scale of permanent incapacity, which is essential for calculating compensation. The insurance company also provides information about limits and exclusions in the policy.
   
• When you take out personal accident insurance, you can opt for an annual recalculation of the premium up to a certain percentage. The policyholder may refuse this choice of “dynamic” insurance within six weeks after each recalculation.

• Applicant
  This is the insured person who signs the application for insurance.
   
• Medical examination
  A medical examination is not generally required. The insurer usually obtains information about certain serious illnesses such as haemophilia, for example. In most cases insurance is not provided for dependent persons who need assistance from a third person or belong to a certain category of assistance or suffer from serious mental problems. 
   
• Scale of permanent incapacity
  This scale defines the level of incapacity in percentage terms*:

* Extract for information purposes from the scale published by the German Federation of Insurance Companies (GDV)

• Invalidity
  Any person suffering from a permanent decrease in his physical or mental capacities is regarded as invalid.  
   
• Compact rate
  Compact rates are for policies that offer different kinds of services.
   
• Policy
  The insurance policy, which is the agreement made by the insurance company and the insured person.
   
• Accident
  In insurance terms an accident refers to bodily injury caused to a policyholder by a sudden and unexpected external event. 
   
• Policyholder
  This is the person who is insured against the risk of an accident. In the event of an accident the policyholder will be compensated on the basis of his level of invalidity in accordance with the terms of the insurance policy.

Experience shows that one cannot always avoid a court case and the associated costs, which are difficult to imagine. Some people sacrifice their rights because of the high legal costs involved. This is hardly surprising since a court case involving an amount of 2,500 euros costs 1,500 euros itself.

The most expensive court cases are those involving compensation for serious bodily injury, for example those on behalf of an individual suffering total and permanent invalidity. If the amount of the claim exceeds one million euros, legal fees are usually more than 40,000 euros. Legal protection insurance is designed for persons who want not only to be right but also to have their rights upheld. It can be of great assistance in the event of court cases and enables the policyholder to protect his rights without financial risk or restriction.

Important: These facts and advice regarding legal protection insurance are provided only for information. For the legal dispositions you should contact your insurance company.

The insurer covers the costs and advances related to the defence of the interests of the policyholder. This includes lawyers’ fees in accordance with the law on payments for lawyers (RVG), court costs including payments to witnesses and experts, costs for evaluations and, if the case is lost, the legal costs of the other party. The insurer also provides an interest-free loan for the payment of bail. The cover is valid in Europe and the Mediterranean countries. Under the new general insurance conditions (ARB 2010), and according to the conditions in the policy, the cover can be global with the payment of a small additional premium on condition that the trip is private in nature and less than six months in length. Older policies can be amended to conform to the new conditions.

Legal protection insurance can be made up of several components:

• Legal protection regarding right to compensation:  if the policyholder wants to ensure his right to be compensated by the person responsible for causing harm.
   
• Professional legal protection: for cases involving employers and employees.
   
• Legal protection regarding rental and property ownership:  Increase in rent or cancellation of lease or unusual problems caused by neighbours.
   
• Legal protection regarding agreements: When in everyday life there are issues regarding agreements, for example sales, repair or insurance agreements.
   
• Legal protection regarding fiscal matters:  Trials regarding payment or recovery of taxes.
   
• Legal protection regarding social disagreements:  Trials at the Social Tribunal regarding, for example, inappropriate cover by an official health insurance fund.
   
• Legal protection regarding driving: For example, a problem with the driving licence.
   
• Legal protection regarding official duties:  For example, for civil servants accused of committing errors.
   
• Legal protection regarding defence costs:  Defence in a court case regarding unintentional injury or administrative fines.
   
• Legal protection and advice regarding family and inheritance law:  advice regarding family law or inheritance law in the event of divorce or inheritance. 

Depending on the terms of the policy, the proposed cover in the catalogue of services can be enlarged (for example, extra-legal transaction regarding legal protection before the social rights tribunal or other services in terms of family law and inheritance law) or can be reduced.

In addition, other essential services include:

• Legal advice by telephone
• On-line legal advice
• Contact with a network of specialised lawyers
• Assistance in finding a lawyer
• Model policies
• Mediation

You can combine the various forms of legal protection insurance in order to obtain an individual cover that meets your needs. Legal protection insurance regarding driving is important for vehicle owners and drivers since the roads are becoming increasingly crowded and the risk of being involved in an accident and resulting court cases is also rising.

Legal protection for the family is a very complete form of insurance that covers the parents, the minor and adult children, and single children who are undertaking professional training. For employees this covers private life as well as professional life. The inclusion of legal protection regarding rental and property ownership for the owners of apartments or land costs a little more.

Professional legal protection insurance is available for the self-employed, liberal professions and companies. The extent of cover is described in the insurance policy.

You should immediately inform your insurer if you need legal advice or assistance. Describe in an accurate and detailed manner the circumstances of the accident and provide any available documentation.

Be sure that you meet any imposed deadlines. This is especially important regarding court summons, notices of fines, actions to protect against firing at the German employment court, issues brought before the social tribunal and payment orders.

Read carefully any summons or instructions that you receive and agree with your insurance company and your lawyer on the procedures to follow.

• The policyholder should carefully analyse his individual needs by analysing the risks to which he is exposed. He should seek advice regarding the various forms of legal protection insurance. If you drive frequently, especially abroad, it is advisable to take out legal protection insurance regarding driving. Owners of apartments or land as well as renters should take out legal protection insurance regarding rental and property ownership.
    
• Legal protection insurance covers you regarding most normal court cases. However, there are exceptions: the insurance does not cover procedures for intentional crimes such as assault, theft or fraud. Also excluded are hearings before international tribunals, hearings regarding bankruptcy of the policyholder, hearings regarding construction or renovation of a building having a construction permit, and – often – hearings regarding family law or inheritance issues (in which case the service is limited to legal advice and the partial cover of costs). The insurance also excludes hearings for gambling debts.
   
• The policies are not retroactive and do not provide cover for incidents that occurred prior to the signature of the policy.

• Exclusions / limits
  These are events not covered by the policy, such as for example court cases involving the right to build, legislation regarding cartels or competition, or hearings before international tribunals.
   
• Changes in the premium
  According to the policy, the premium can increase or decrease during the duration of the policy.
   
• Fines
  Legal fines that the policyholder must pay himself.
   
• Territoriality
  This term designates the countries covered by the guarantee. Policies following ARB 2010 terms and conditions are valid throughout the world, but only for a limited time period.
   
• Change in risk
  Any change in the risk, for example if the insured vehicle is sold or the policyholder becomes self-employed or changes place of residence, must be reported to the insurance company.
   
• Amount insured
  Legal protection insurance covers costs up to an amount set out in the policy. 
   
• Intentional crimes
  Crimes, such as for example assault, theft or fraud, are excluded from the cover. 
   
• Retroactivity
  The insurance does not cover events occurring before the policy comes into effect.
   
• Waiting period
  For some forms of insurance, there is often a waiting period of three months. This means that the policyholder is not covered for events that occur during the this period following the signature of the policy, i.e. during the waiting period.