The Supreme Court recently ruled, based on a decision by the European Court of Justice, that if the insurance company fails to inform or incorrectly informs the insurance company about the right of withdrawal from life insurance, the policyholder is entitled to an unlimited right of withdrawal.

 

The newsletter shows the legal basis and options for withdrawing from a life insurance policy even after the statutory 30-day withdrawal period has expired; In individual cases, this can make economic sense due to the legal interest rate on deposits of 4% p.a.

According to Section 165a of the Insurance Contract Act (VersVG), the policyholder is entitled to withdraw from the insurance contract within 30 days of being informed of the conclusion of the insurance contract. This provision has been in force for a long time. It is important, however, that before October 1, 2004 the withdrawal period was only two weeks. It is therefore conceivable that numerous cancellation instructions after October 1, 2004 contain a cancellation period that is too short due to outdated forms.

 

Further information on the decision of the OGH and the options for withdrawal can be found in our newsletter.

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