Accident Insurance

Private accident insurance (private Unfallversicherung) pays a lump sum or monthly pension if you suffer permanent physical impairment as the result of an accident. It fills a gap that the state system leaves open: Germany's statutory accident insurance (gesetzliche Unfallversicherung), provided through your employer, only covers workplace accidents and commuting. Anything that happens at home, during leisure activities, in sport, or on holiday falls entirely outside state coverage. What counts as an accident under the policy? An accident is defined as a sudden, external event that involuntarily causes physical harm to the insured person. The external cause requirement is important: an internal medical event such as a heart attack or stroke does not qualify as an accident, even if it leads to a fall or injury. What does the policy cover? The main components are: an invalidity benefit (a one-off capital payment calculated using the Gliedertaxe — a schedule assigning percentage values to the loss or impairment of specific body parts), an accident pension for severe disability, daily hospital cash, search and rescue costs (Bergungskosten), and a death benefit for dependants. What is not covered? Illness — this is the most significant exclusion. If you become unable to work due to disease, accident insurance pays nothing. Also typically excluded: accidents under the influence of alcohol or drugs, and psychological consequences of accidents. What to look for when choosing a policy: The Gliedertaxe schedule and the Progression clause are the two most important quality indicators. A higher progression multiplier means that at high levels of disability, the payout increases disproportionately. Also check whether your specific sporting activities are covered or excluded. Important note: accident insurance only covers accidents, not illness. For broader protection of your earning capacity, occupational disability insurance (Berufsunfähigkeitsversicherung) should also be considered.