by Mathias V. Hofen, Euro on Sunday
Around nine million accidents happen in Germany every year. Private accident insurance (UV) has developed further in recent years, sometimes with significant changes. Where have there been positive developments and where are the tariffs still in need of improvement?
Which important services are missing in some tariffs?
The cause of the accident “own movement” should be included in a policy if possible. Basically, an accident is defined as “a sudden event that affects the body from the outside”. However, what about the disc damage that occurs when lifting a piece of furniture? Or the torn ligament while jogging?
In a standard policy, this is not included in accident insurance, since there is no external influence on the body and the movement that caused it was voluntary. Before concluding a contract, the customer should therefore specifically ask the broker or representative whether temporary or permanent disability is also insured following personal movement.
Also very important is the waiver of a contribution to previous damage. If permanent damage occurs after an accident, the insurer has the right, if there was previous damage to an affected part of the body, to offset this against the insurance benefit. The insurance company therefore checks whether there was already previous damage in the event of disability. For example, if a cyclist injures his knee in a fall and it is found that it was already damaged by osteoarthritis, the contributing factor of osteoarthritis could be calculated at 50 percent. Accordingly, the actual benefit to be paid would be reduced by half.
In the past few years, insured persons had sued several times against this regulation, which was unfavorable for them. But they lost almost all of the time. It therefore makes sense to choose a tariff that waives a share of participation in the event of previous damage or at least a tariff that only reduces benefits from a participation share of 75 percent.
Do offers without health questions make sense?
Tariffs without health issues make sense for people with significant previous illnesses. Otherwise they would have to answer various questions about their previous illnesses. Some insurers have already created a small catalog of questions. This can be very time-consuming for the customer, since he often has to request documents from different doctors or even present current examination results. While a few years ago tariffs without health issues were offered with overall rather unfavorable conditions, the offer has improved in recent years.
For example, the VHV, the DEVK and the liability insurance company offer UVs without health issues. However, some of the offers do not entail a waiver of the offsetting of previous damage. Experts call this a post-mortem health check. Therefore, tariffs with no crediting are recommended, especially for people with previous illnesses.
Has Corona increased the importance of accident insurance?
Corona increased the relevance of private accident insurance, especially in the first year of the pandemic. Until June 2021, the statutory accident insurance (GUV) only paid for accidents in the home office if they were related to the activity. But going to the kitchen to get something to drink or going to the toilet was no longer insured. Since the outbreak of the pandemic in Germany, people have increasingly been working from home, and insurance cover was no longer sufficient for many employees. This was expanded in June 2021, so that the way to the toilet or the kitchen is now also covered.
In general, there is no guarantee that the services provided by the GUV will remain at the current level in the future. Employers’ associations are calling for accidents on the way to work to be removed from the GUV’s catalog of benefits and for occupational diseases to be differentiated more clearly from general health risks. Such a reform would not be social, but since only employers pay into the GUV, they have a special say in this.
Accident insurance with premium refund – advantage or disadvantage for customers?
In recent years, many insurers have been heavily promoting accident insurance policies with a premium refund. These promise customers that at the end of the term, part of the premiums paid, including interest and any excess, will be repaid to the policyholder. However, in the case of the UV with premium refund, only the part of the premiums that is invested and interest-bearing by the insurer is repaid. The other part, on the other hand, is only used for insurance cover and is therefore not reimbursed to the customer.
In principle, it is an accident insurance with an attached savings contract. The interest rate is usually not very attractive. On average, you have to pay four to five times the premium for an accident insurance with premium refund than for a normal accident insurance with the same sum insured. In addition, policies with premium refunds usually have long terms of at least 20 years. If you cancel before the end of the term, you will suffer high losses. Since the interest on the savings portion has also fallen in recent years due to developments on the capital market, many customers have nevertheless canceled their policies with a premium refund. Overall, this form of accident insurance is hardly recommended.
Have the services of the private UV improved?
In recent years, many insurers have included some additional services in their tariffs. For example, infections are also insured by most providers. Disability or death in the case of infections such as malaria or tetanus are already covered by the general insurance conditions. However, some insurers also pay for vaccination damage, sometimes including a corona vaccination.
Poisoning, for example through gases, is usually also insured. Food poisoning is now also insured with various providers. This service also expands the classic concept of accidents considerably and was often not covered in the past.
Accidents after a stroke or heart attack are also insured in good tariffs. In the past, these were mostly excluded from the catalog of benefits, which corresponded to the definition of accidents, but caused absolute incomprehension among many insured persons.
Various insurers are also more generous when it comes to alcohol limits in the event of a car or two-wheeler accident. Individual insurers set the bar surprisingly high here, up to 1.7 per thousand, which is not entirely undisputed. However, a few insurers continue to adhere to the zero alcohol limit.
Not suitable for every case
Overall, the benefits of private accident insurance have improved in recent years. Services are now often included that are not covered by the classic definition of accidents. However, the vast majority of illnesses are still not covered by UV insurance. Private disability insurance therefore offers much more comprehensive protection. However, if you cannot be insured here due to previous illnesses, a high-risk job or hobby, or can only be insured with exclusions or very high premiums, UV is an alternative for you.
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Image sources: 123RF, iStockphoto
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