Insurance Coverage for Personal Accidents: Is It Essential or Superfluous?
In the ever-changing world we live in, it's essential to have the right safety net to protect us from unexpected events. One such protection is private accident insurance, a crucial supplement to statutory accident coverage in Germany. Here's what you need to know when choosing a policy.
Scope of Coverage
Ensure your policy covers accidents not only at work but also during leisure time, potentially worldwide. Comprehensive protection, including coverage abroad, is vital for peace of mind when travelling[1].
Compensation Basis
Understand that compensation is often calculated based on the severity of injury using a predefined scale (Gliedertaxe). Check how disabilities or injuries are assessed financially in the policy[1].
Additional Services
Some policies offer supplementary benefits such as therapy consultations or household assistance after an accident, which can be valuable features to consider[1].
Cost and Premium Structure
Premiums depend on coverage level and risk profile. Group policies (e.g., through an employer) tend to be more cost-effective than individual ones. Determine who pays the premiums and how this affects overall cost[1].
Tax Implications
If premiums are paid by the employer, they may be considered taxable income. However, group agreements and low premiums might have favorable tax treatments. Knowing this helps in evaluating net benefit[1].
Policy Terms and Exclusions
Carefully review terms and conditions, especially any limitations related to illness or specific accident types to avoid gaps in coverage[1].
Claims Process and Administration
Check how claims are handled—whether through the employer or directly with the insurer—and the clarity and convenience of the process[1].
A well-chosen private accident insurance policy in Germany should complement statutory accident coverage by protecting you during non-work times, offer appropriate financial compensation for injury severity, include useful additional services, be affordable with clear premium and tax considerations, and have straightforward terms and claims procedures[1].
Other Considerations
- Disability insurance may be a better choice if accident insurance may not be sufficient if you lose your ability to work.
- Insurers often charge higher rates for policies for retirees.
- Accident insurance benefits are divided into the tariff table (Gliedertaxe) and accident pension (Unfallrente).
- The insurance company can extraordinarily cancel you as a customer after the settlement of a claim.
- Some insurers offer family accident insurance.
- Daily sickness allowance insurance also covers loss of income due to illness, not just accidents.
- In principle, it's possible to have multiple accident insurances, but many insurers ask before taking out a policy whether you already have an accident insurance and refuse to provide insurance coverage if you answer yes. If the insurer has not asked, however, they must pay out in case of damage.
- Children and young people are insured for accidents in school and for commuting accidents.
- Many accident insurance policies offer an accident pension for an additional premium, but this usually only kicks in at a disability rating of 50% or higher.
- Some insurers may exclude permanent damage related to pre-existing conditions for retirees.
- If the insurance increases the premium without improving the insurance coverage, you have a notice period of 1 month to cancel the insurance.
- Accident insurance pays out if permanent damage remains after an accident.
- For hikers: Rescue costs in case of accidents in the mountains are also covered by a good accident insurance.
- In Germany, there are approximately 10 million accidents per year.
- If you are dissatisfied with the settlement of a claim, you can also cancel the insurance. It doesn't matter whether you have received a payment or not. You have 1 month to cancel after the claim settlement or rejection.
- If you switch providers, you may be able to save money or receive a higher benefit in case of damage.
[1] Source: German Insurance Association (GDV) - https://www.gdv.de/
Given the and the importance of safeguarding personal-finance in unexpected events, one should consider supplementing statutory accident coverage with personal-finance insurance that offers comprehensive protection during leisure times and, ideally, abroad. Additionally, understanding the compensation basis, which is often based on the severity of injury using a predefined scale (Gliedertaxe), is crucial when selecting an insurance policy.
