Which consulting errors justify a claim, how the consulting documentation becomes evidence, and which deadlines apply.
Your pension insurance doesn't suit your current life situation and you feel you received poor advice when you signed it? If the advisor breached their duties, you may be entitled to compensation under Section 63 of the German Insurance Contract Act (VVG). In that case, you can be put in the position you would have been in had you never entered into the contract. Rogert & Ulbrich will review the advice given and enforce your claims.
Compensation for damages instead of upholding the contract
Many policyholders believe that if they have a poor pension insurance policy, their only option is to cancel it and receive a low surrender value. However, there is another way: claiming damages for negligent advice. If the insurance agent violated their duty to advise and document the policy at the time of purchase, they are liable for the resulting damages under Section 63 of the German Insurance Contract Act (VVG).
The goal is then not to optimize the contract, but to be put in the position you would have been in had you never entered into it. From his previous work on the insurance side, lawyer Dario Kovac is familiar with the consultation processes and knows how to identify errors in advice.
Do you feel you've received bad advice? This path goes beyond a mere... Dispute over performance, because it starts right at the conclusion.
Typical advice errors made by the intermediary
According to Section 61 of the German Insurance Contract Act (VVG), the intermediary must provide you with advice tailored to your specific needs, determine your requirements, and give a suitable recommendation. If they fail to do so, this constitutes a breach of duty. Typical examples include:
- Commission not disclosedThe intermediary does not disclose any payments or conflicts of interest and recommends a product that primarily benefits him.
- Risk profile ignored: A return-oriented or long-term investment is recommended, even though it does not match your risk tolerance or investment horizon.
- Pension gap not uncoveredThe actual insurance needs are not determined, so the contract misses the mark for your situation.
- Costs and flexibility were concealed.High closing costs, long contract durations, or the consequences of early termination are not explained.
- Unsuitable productA capital-forming insurance policy is sold even though a simpler or more flexible solution would have been a better fit.
The crucial point is that the recommendation, at the time of the consultation, did not align with your goals and circumstances. Not every unfavorable outcome in retrospect constitutes a consulting error, but a recommendation that contradicts your apparent needs often does.
Does any of these points sound familiar? Have the consultant check whether an error has occurred.
The consultation documentation as the key to proof
The intermediary is obligated to document the reason for the consultation, your wishes, their recommendation, and the reasons for it, and to provide you with this consultation documentation before the contract is concluded (§§ 61 and 62 of the German Insurance Contract Act). This document will then become the central piece of evidence in the event of a dispute.
If the documentation is missing, incomplete, or contradicts what was actually discussed, this can significantly strengthen your position. Case law allows for relaxed evidentiary standards in such cases. We know similar principles from the... Consumer protection practice in banking and capital markets law, where faulty advice is a familiar field.
Therefore, save all documents from the closing phase: the consultation documentation, the application, product information, and notes. The better documented the consultation, the easier it is to prove an error.
Do you have no or only meager documentation of your consultations? This can actually work in your favor; have it reviewed.
What you can claim in terms of compensation
If a negligent piece of advice can be proven, the claim is based on so-called negative interest. You are to be put in the position you would have been in had the negligent advice not been given. As a rule, this means:
- Reversal of the contractReimbursement of the contributions paid, in exchange for the return of what you have received from the contract.
- Compensation for consequential damages: For example, lost returns from an investment you would have chosen without the mistake, insofar as they can be proven.
The advantage over simply canceling the contract is that you are not limited to the low surrender value, but can generally demand a refund of your contributions. Whether compensation is more advantageous than cancellation or revocation depends on the individual case and should be compared.
Want to know what a compensation payment will actually achieve? Have it weighed against termination and cancellation.
Statute of limitations: why you shouldn't wait too long
Claims for damages due to incorrect advice are subject to a statute of limitations. The standard limitation period of three years applies. It begins at the end of the year in which the claim arose and you became aware, or should have become aware without gross negligence, of the circumstances giving rise to the claim and the identity of the intermediary.
Regardless of knowledge, there are absolute maximum periods after which claims expire. Especially with contracts signed long ago, the statute of limitations is therefore the first point to check. It's important to note: the limitation period is linked to your knowledge of the issue, not solely to the contract date. Someone who only learns of an error in advice much later may still have time.
Whether your claim is still enforceable often depends on the exact circumstances. Examination and enforcement of claims arising from insurance contracts. Prematurely assuming the statute of limitations has expired is just as wrong as waiting too long.
Is your contract years old? Have it checked whether and when the statute of limitations actually applies before you give up.
What you should do if you suspect an error in advice
If you suspect you've received incorrect advice, a structured review is essential. These steps will help:
- Secure documents: Compile the consultation documentation, application, product information and the insurance certificate.
- Document the consultation situationNote down what was discussed, what goals you mentioned, and what was recommended.
- Have errors checkedHave it determined whether the recommendation met your needs at the time and whether the documentation is complete.
- Clarify the statute of limitationsHave it checked when you became aware of it and whether the deadline is still open.
- Compare routesCompare the options of compensation, cancellation, and termination before making a decision.
We will cover the details of how termination and cancellation work, and potential points of contention regarding payouts, in separate articles. Whether a clause or piece of advice is contestable often depends on... Contract interpretation and breaches of duty. You can find an overview of our work in the section below. Insurance law.
The sooner the consultation is reviewed, the better the claim can be secured. Have your case assessed while the deadlines are still open.
Rogert & Ulbrich – Your lawyers in insurance law
Rogert & Ulbrich represent policyholders nationwide in claims for damages arising from negligent advice regarding pension and life insurance policies. Attorney Dario Kovac serves as the contact person, drawing on his previous experience working on the insurers' side to understand their review and rejection strategies. We combine this insider knowledge with the firm's extensive consumer protection experience gained from major cases in banking, capital markets, and automotive law. This allows us to engage with insurers and brokers on equal footing.
We review the consultation documentation and the contract, assess whether there was a consulting error, clarify the statute of limitations, and compare claims for damages, revocation, and termination. In the case of the Examination and enforcement of claims arising from insurance contracts We represent you out of court and, if necessary, in court. We involve any existing legal expenses insurance early on and obtain the coverage confirmation for you.
Were you given incorrect advice when you took out your pension insurance? Get in touch and secure your entitlements.
