The Most Important Duties of the Policy Holder and the Insured
The policy holder must make the insurance payments.
Before grant of the insurance, the policy holder and the insured must provide correct and complete answers to questions presented to them, which may have an effect regarding the evaluation of the insurer’s liability. If the policy holder or the insured becomes aware that he/she has provided false or incomplete information, he/she must immediately notify the insurance company of this.
The duty to provide information is very strict regarding personal and accident insurances. The insurance contract does not bind the insurer, if the policy holder or the insured has acted fraudulently when providing information.
The terms and conditions of an accident insurance may include provisions that the policy holder has to notify the insurer about any change in the circumstances reported to the insurer at the time the insurance was concluded or in the circumstances recorded in the insurance policy and which materially increase the risk and which the insurer cannot be considered to have taken into account when the insurance agreement was concluded. The insurer has to remind the policy holder of this obligation in its annual announcement. The policy holder has to notify the insurer about the change within one month’s period after receipt of the annual announcement. In the policy holder has willfully or through negligence which cannot be considered slight failed to fulfill the obligation to notify the insurer, compensation may be reduced or refused.