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VSH: Waiver of special right of termination is essential for intermediaries
For many insurance brokers, the waiver of the insurer's special right of termination after a claim in the property damage liability insurance (VSH) is an important criterion when choosing the provider. But this reduces the selection to just a few providers.
According to § 92 VVG, each contracting party can terminate the insurance relationship after the occurrence of the insured event. If the insurer makes use of this right, he must observe a period of one month. In practice this means: If the insurance broker does not find a new insurer within this month, the IHK, as the licensing authority, will withdraw his license for lack of evidence of the statutory compulsory insurance. Christian Henseler points this out in a message. He is the managing director of CGPA Europe and a proven VSH expert. CGPA Europe Underwriting GmbH specializes in the protection of insurance brokers in the area of VSH. The German representation of the Europe-wide operating VSH insurer CGPA Europe S.A. (CGPA headquarters: Paris, France) acts as an underwriting agent.
Of great importance for start-ups
Of course, the insurer, as well as the policyholder, always has the right to properly terminate the contract when it expires. But the advantage of not having to terminate the contract due to the loss is clear: If the insurance broker has concluded a three-year contract, he is safe for at least the entire agreed insurance period. This is of great importance, especially for start-ups, for whom the risk potential of property damage is fundamentally higher. In addition, in the worst case scenario, two damages can occur in quick succession, explains Henseler.
The affiliation contract
Insurance brokers also know that when looking for a follow-up contract it is very important whether the insurer has given notice of a loss-related termination within one month or whether you can agree with him that the policyholder can terminate the contract of his own accord on the next expiry date. Some VSH cover concepts also include a so-called right to be heard by the cover concept provider if the insurer wishes to terminate the insurance broker's contract after a claim has occurred.
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Waiver of termination would be a clear statement from the insurer
If the insurer wishes to terminate an individual insured person in the interests of the community of insured persons, this usually coincides with the interests of the provider. After all, you don't want to jeopardize the loss rate of the entire portfolio or spoil your relationship with a long-term cooperation partner. Compared to such a waiver of a hearing, the waiver of termination represents a clear statement by the insurer (and not the cover concept provider) not to leave its customers alone in the event of a claim.
Prevent mental stress
In addition to these factual reasons, according to Henseler, there is also a psychological reason. A liability case could drag on over a very long period of time, especially when it comes to large sums and several instances are called. That could be very stressful mentally. The fact that your own VSH insurer ultimately does not use the claim as an opportunity to also give notice of one month's notice, then provides a little reassurance.
Author (s): Bernhard Rudolf
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