Navigating the Insurance Contract Act (VVG): Your key to rights, obligations and the current legal text instead of outdated PDFs
03.04.25
12
Minutes
Katrin Straub
Managing Director at nextsure
The Insurance Contract Act (VVG) is the foundation of every insurance policy in Germany; a lack of knowledge can quickly cost you several thousand euros. This article explains the VVG in practical terms and shows you how to enforce your rights as a policyholder with up to a 100 per cent success rate.
The topic in brief and concise terms
The VVG is the central legal basis for all insurance contracts in Germany and protects your rights as a consumer.
Being aware of your rights (e.g. the right to information) and obligations (e.g. duty to notify) can prevent benefit denials of up to 100 per cent.
The official online version of the VVG is more up to date than most PDF documents and should be your first port of call.
The foundation of your security: understanding the core functions of the Insurance Contract Act (VVG)
The Insurance Contract Act (VVG) has formed the legal basis for almost every insurance contract in Germany since its comprehensive reform in 2008. It protects consumers through more than fifty sections that define rights and obligations. A basic understanding of the VVG can help you better understand contract details, such as in your car insurance. Knowing just three core areas of the VVG significantly strengthens your position vis-à-vis insurers. This knowledge is crucial, because thousands of claims are reduced every year due to misunderstandings. For example, the VVG specifies what information you are entitled to before concluding a contract. This helps you protect yourself against unexpected exclusions from cover, which can amount to as much as one hundred per cent of the loss. The following sections examine these aspects in more detail.
Creating clarity before concluding the contract: using information and advisory obligations under the VVG
Insurers must provide you with comprehensive advice and information before the contract is concluded; this is governed by sections six and seven of the VVG. You therefore receive all essential contract information, usually in the form of a product information sheet. This obligation covers at least five key aspects of the insurance cover offered. Proper advice would have led to better protection in over sixty per cent of disputed cases. Make sure that the advice takes your individual situation and needs into account, for example with a complex income protection insurance policy. Documenting this advice is also a requirement for the provider. This transparency enables you to make an informed decision and protects you from nasty surprises, which often only become apparent after ten years. Next, we will look at your own important obligations.
Taking responsibility: mastering disclosure obligations and duties under the VVG
As the policyholder, you have certain duties before and during the term of the contract, known as obligations. The most important pre-contractual duty is the duty of disclosure under Section nineteen of the VVG. You must state all risk-relevant circumstances about which the insurer asks in text form truthfully and completely. A breach of this duty can have far-reaching consequences: the insurer may withdraw from the contract or reduce the benefit by up to one hundred per cent. A typical example is failing to disclose pre-existing conditions when taking out a dental supplementary insurance policy. During the term of the contract, you must comply with certain obligations in accordance with Section twenty-eight of the VVG. This often includes reporting any increase in risk without delay, such as scaffolding on the house in the case of your buildings insurance. Complying with just two of these duties can secure full insurance cover. Compliance with these duties is crucial to your entitlement to benefits. Below, you will learn how to proceed correctly in the event of a claim.
Important obligations of the policyholder:
Here is a list of the typical obligations you should know about:
Answering application questions truthfully (pre-contractual duty of disclosure).
Immediate notification of the insured event.
Assisting with the clarification of the loss (duty to provide information and evidence).
Duty to mitigate loss (measures to reduce the extent of the damage).
Reporting increases in risk during the term of the contract.
Timely payment of premiums.
The exact obligations are set out in your specific insurance contract and the General Conditions of Insurance (AVB). It is always worth taking a look at these documents.
Act correctly in an emergency: Your rights and obligations in the event of a claim under the VVG
If an insured event occurs, you are obliged under Section thirty of the Insurance Contract Act (VVG) to notify the insurer without delay. The deadline for this is often only a few days. In addition, under Section thirty-one VVG, you must provide all information required to determine the loss and the scope of cover. This may include submitting invoices, photos or witness statements within a period of, for example, fourteen days. A correct claims notification speeds up settlement by an average of thirty per cent. You are entitled to prompt assessment and payment by the insurer. If the insurer breaches its obligations, you may be able to claim default interest. For example, in the event of water damage caused by a defective pipe in your contents insurance, you should document the damage immediately. Understanding these processes is crucial for smooth handling. But what if policy terms change or cancellation is imminent?
Contract amendments and termination: Navigating the VVG with confidence
The VVG also regulates how insurance contracts can be amended or terminated. If the insurer increases the premium, you often have a special right of termination in accordance with Section 40 VVG. You usually have to exercise this right within one month of receiving the notice. Ordinary notice periods, typically three months before the end of the contract, are also set out in the VVG and in your contract. More than eighty per cent of policyholders do not know their cancellation rights exactly. A contract adjustment, such as changing the insured sum, requires the agreement of both parties. Our expert tip: review annually whether your insurance cover, e.g. for your legal expenses insurance, is still up to date. These rules give you flexibility and control over your insurance contracts. Finally, we take a look at current developments and the importance of access to the legal text.
Reasons for terminating or adjusting a contract can include:
There are various situations in which adjusting or cancelling your insurance contract may be sensible or necessary:
Change in the insured risk (e.g. moving house, new job).
Premium increase by the insurer without an improvement in benefits.
A more favourable offer from another insurer with at least the same benefits.
Discontent with the service or claims handling of the current insurer.
Cessation of the insured interest (e.g. sale of the insured car).
Double insurance for the same risk.
Always check the contractually agreed deadlines and conditions before taking action.
Expert knowledge of the VVG: Current rulings and the myth of the "Insurance Contract Act PDF"
The Insurance Contract Act is not a rigid construct, but is continually developed through case law. Every year, hundreds of judgments are handed down that clarify individual provisions, for example on information obligations in the event of premium increases in private health insurance (cf. section 203 VVG). Many users search for an “Insurance Contract Act PDF”. However, a PDF can quickly become outdated; the online version of the Federal Ministry of Justice is always up to date. There you will find the current statutory text and can keep yourself up to date. For specific questions, such as about cyber insurance, it is advisable to check the current terms and the latest case law. Our expert tip: use the online version of the VVG provided by the Federal Ministry of Justice for reliable information. This knowledge will help you assert your rights confidently.
More useful links
The Federal Ministry of Justice provides the complete and always up-to-date legal text of the Insurance Contract Act (VVG) from 2008.
The Federal Ministry of Justice offers a detailed table of contents for the Insurance Contract Act (VVG) 2008, enabling quick orientation.
The Federal Ministry of Justice provides access to the Ordinance for the Implementation of the Insurance Contract Act (VVGeg), which contains supplementary provisions to the VVG.
The Federal Ministry of Justice takes you directly to Section 19 of the Insurance Contract Act (VVG) 2008, which deals with the important pre-contractual duty of disclosure.
FAQ
What is the Insurance Contract Act (VVG)?
The Insurance Contract Act (VVG) is the central German law governing the rights and obligations of insurers and policyholders. It forms the legal basis for all types of insurance contracts, from motor insurance to life insurance.
Why is the VVG important for me as a policyholder?
The VVG protects you as a consumer. It sets out what information the insurer must provide you with, what obligations you have (e.g. in the event of a claim) and what rights you are entitled to (e.g. in the event of cancellation or refusal of benefits). Knowing the VVG helps you enforce your claims.
Do I need to know the entire VVG?
No, you do not need to know every paragraph by heart. However, it is helpful to understand the basic principles and the sections relevant to your situation, in particular those relating to notification obligations, duties in the event of a claim, and rights of cancellation.
Where can I find the current text of the VVG?
You can find the current official text of the Insurance Contract Act online on the website 'gesetze-im-internet.de', provided by the Federal Ministry of Justice. This source is more reliable than possibly outdated PDF versions.
What are obligations within the meaning of the VVG?
Obligations are duties of conduct of the policyholder stipulated by contract or law. These include, for example, answering application questions truthfully or reporting a claim without delay. Breach of obligations can lead to loss of insurance cover.
What can I do if my insurer refuses to pay?
First, check the insurer’s justification and compare it with your policy terms and the provisions of the VVG. If necessary, seek legal advice or contact the Versicherungsombudsmann e.V., an independent conciliation body.
