Court decision against Check24 creates legal certainty for online sale of insurance products
The court decision obtained by BOEHMERT & BOEHMERT partners Prof. Dr. Jan Bernd Nordemann and Dr. Stanislaus Jaworski on behalf of the German Association of Insurance Brokers (BVK) against Check24 provides legal certainty with regard to previously unclarified questions of insurance brokerage law and at the same time reinforces consumer rights.
The Regional Court in Munich announced its decision on 13 July 2016 and made clear that Check24 must make the consumer actively aware of its broker function on first contact. Further, the Court held that duties of inquiry and consultation under the Insurance Contract Act apply for all brokers - whether these operate offline or online. In the Court's opinion, these duties were not satisfactorily discharged by Check24. The judgement provides clarity for various previously undecided and contested questions in insurance distribution law which are relevant for all online insurance brokers. The rapidly growing InsurTech industry in Germany, which is focuses on digitalised brokerage models, is therefore immediately affected by the judgement.