GermanyHow does insurance factor into personal injury claims?
Insurance doesn’t replace the injured person’s right to claim damages under German law—but it typically pays the liable party’s compensation obligation, as required by § 249 BGB. The injured person claims directly from the liable party (or their insurer), not from their own insurance, unless specific coverage like private accident insurance applies.
What the Law Says
German law does not require the injured person to rely on their own insurance to recover damages. Instead, the liable party—whether an individual, employer, or manufacturer—is legally obligated to restore the injured person to the position they would have been in had the harm never occurred. This principle is codified in § 249 of the German Civil Code (BGB). While insurance (especially liability insurance) is how most defendants fulfill this duty, the legal claim itself arises directly from the tort or statutory liability—and not from any insurance contract.
Under § 249 BGB, the core aim of compensation is restitutio in integrum—restoring the pre-injury status quo. This includes reimbursement for medical costs, lost wages, rehabilitation, and non-material damages like pain and suffering (Schmerzensgeld).
Paragraph (2) clarifies that instead of physical restoration (e.g., repairing a damaged car), the injured party may demand the necessary monetary amount. For personal injury, this means cash compensation covering all quantifiable losses and reasonable estimates of intangible harm.
Importantly, § 249 establishes the legal entitlement—but says nothing about insurance. Insurance comes into play operationally: most individuals and businesses carry liability insurance (Haftpflichtversicherung) precisely to cover such statutory obligations. However, the insurer’s role is contractual and secondary; the injured person’s claim is against the liable party, not the insurer—though in practice, insurers handle settlement negotiations and payments.
Statutory TextWer zum Schadensersatz verpflichtet ist, hat den Zustand herzustellen, der bestehen würde, wenn der zum Ersatz verpflichtende Umstand nicht eingetreten wäre.
— BGB § 249 — Nature and scope of damages
Statutory TextIst wegen Verletzung einer Person oder wegen Beschädigung einer Sache Schadensersatz zu leisten, so kann der Gläubiger statt der Herstellung den dazu erforderlichen Geldbetrag verlangen.
— BGB § 249 — Nature and scope of damages
What Courts Have Said
German courts consistently treat liability insurance as a funding mechanism—not a source of independent legal rights for the injured party. The claim remains grounded in tort or statutory liability, and insurers step in only as agents of the liable party.
The court confirmed strict liability under § 1 ProdHaftG for defective medical devices, emphasizing that the injured patient’s claim arises directly from the statutory defect—not from any insurance policy. The manufacturer’s liability insurer was held responsible for fulfilling the compensation obligation established under § 249 BGB.
What to Do
Identify the liable party (e.g., driver, property owner, product manufacturer) and confirm whether they hold liability insurance.
Gather evidence of injury, causation, and damages (medical reports, wage statements, expert opinions).
Submit a formal claim to the liable party—and, in practice, also to their liability insurer—with documentation supporting your § 249 BGB entitlement.
If the insurer denies or underpays, file a civil lawsuit naming the liable party (not the insurer) as defendant.
Consult a lawyer early—especially if strict liability (e.g., under ProdHaftG) or complex causation is involved.
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Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: June 2026.