Insurance Premium (Insurance Fee)

The term insurance premium (insurance fee) refers to:

  • Any payment to the insurance company insurer required for the establishment and sustainment implementation of the insurance relationship.
    • Examples: 
      Premiums, advance premiums, advance payments, subsequent payments, allocations; also entry fees, charges for issuing the insurance certificate and other  incidental costs
  • Pension fund contributions to pension funds in terms of the Pensionskassengesetz (Pension Fund Act) as well as contributions to foreign institutions in terms of § 5 para 4 of the Pensionskassengesetz (Pension Fund Act).

Not regarded as insurance premiums (insurance fees):

  • Feuerschutzsteuer (fire protection tax) for which the insurer charges the insurance holder separately.
  • Any payments made to the insurer to special services or for any other reason inherent to the individual insurance holder.
    • Examples:
      Charges for the issuance of a replacement document, dunning costs
  • Share of profit: if a share of profit is calculated from the insurance premium, and only the difference between the premium and the share of profit is paid to the insurer, then only that difference amount is considered to be the insurance premium. A  reimbursement of a part of the premium for a no claims period (bonus) is also considered to be a share of profit.
Last update: 1 January 2024