Unauthorized removal from the scene of an accident: No automatic fraudulent behavior towards insurers

Unauthorized removal from the scene of an accident: No automatic fraudulent behavior towards insurers

According to a report by www.nrz.de, the decision as to whether unauthorized removal from the scene of an accident leads to a loss of insurance coverage lies on a case-by-case basis. The burden of proof lies with the insurer.

The Berlin Regional Court (Az.: 46 S 58/22) made a decision in a case in which a driver ran away from the scene of an accident without permission, but was convicted by witnesses. The insurance company of the person who caused the accident sued and accused him of fraudulent behavior, which would result in the loss of insurance coverage. However, the district court ruled in favor of the driver and the insurance company appealed. However, the appeal was dismissed because the court ruled that leaving the scene of an accident without permission did not necessarily constitute fraudulent behavior.

The court argued that those involved in accidents were often overwhelmed and did not necessarily intend to harm the interests of their insurance company. In the present case, the person who caused the accident had to count on witnesses on site, which spoke against the assumption that behavior was purposeful and disregarded the interests of the insurance company. Since the insurer had to prove fraudulent intent and the insurer did not have sufficient evidence, the lawsuit was unsuccessful.

As an economic expert, one can analyze that such rulings could potentially have an impact on the motor vehicle insurance industry. Insurers may need to take a closer look at whether unauthorized removal from the scene of an accident can actually be viewed as fraudulent behavior in order to withdraw insurance coverage. This could lead to increased complexity in claims settlement and changes in risk assessment. At the same time, it could also lead to fairer treatment of policyholders who leave the scene of an accident without permission in acute stressful situations.