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BGH rules casco policyholders bear workshop repair risks
The German Federal Court of Justice (BGH) has ruled that the so-called “Werkstattrisiko” (workshop risk) remains the responsibility of the policyholder in motor vehicle casco insurance. This decision clarifies a legal distinction between liability insurance and casco insurance.
In liability insurance, the person responsible for an accident or their insurer typically bears the cost of excessive, unnecessary, or incorrect repair invoices. However, the BGH ruled that casco insurers are only obligated to cover costs that are strictly necessary for the repair. Consequently, insurers do not have to reimburse charges for work that is deemed unnecessary, unreasonable, or was not actually performed.
The ruling follows a case where a policyholder sought reimbursement for approximately 389 euros in disputed repair costs. The court upheld previous decisions from lower courts, stating that the insurer is not liable for inflated material costs, excessive labor times, or inefficient workshop practices, provided the insurer did not mandate a specific repair facility.
Entities
Bundesgerichtshof · Federal Court of Justice · Germany · HUK24 · Heilbronn · Karlsruhe
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 8 SOURCES] Under liability law, costs for unnecessary, overpriced, or unperformed repairs should not be charged to the victim. www.allgaeuer-zeitung.de · www.leinetal24.de · www.onetz.de
- [● 8 SOURCES] The 4th Senate of the BGH is hearing the case (Az. IV ZR 235/25). www.allgaeuer-zeitung.de · www.leinetal24.de · www.onetz.de
- [● 8 SOURCES] The BGH is examining the 'workshop risk' (Werkstattrisiko) in the context of casco insurance. www.allgaeuer-zeitung.de · www.leinetal24.de · www.onetz.de
- [● 8 SOURCES] The 4th Senate of the Federal Court of Justice (BGH) is hearing a case regarding workshop risk. www.allgaeuer-zeitung.de · www.leinetal24.de · www.onetz.de
- [● 8 SOURCES] Under liability law, costs from unnecessary, overpriced, or unperformed repairs cannot be charged to the injured party. www.allgaeuer-zeitung.de · www.leinetal24.de · www.onetz.de
- [● 8 SOURCES] The court is determining if the workshop risk principle applies to partial and comprehensive (casco) insurance. www.allgaeuer-zeitung.de · www.leinetal24.de · www.onetz.de