Private Legalities

Child Sick Pay

2010-10-16T07:51:36+02:00

Child Sick Pay

Being statutorily insured, we have to take care of our sick minor child. I informed my employer. What about my salary?

Those on statutory health insurance who have to abstain work to supervise, care for or nurse their child, are eligible for child sickness benefits (§45 I SGB V). Such benefits will only be paid when the child is younger than 12 or is disabled and dependent upon help.
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What about children who are seriously ill?

There is a special regulation for children with a serious illness (§45 IV SGB V). The law grants a timely unlimited claim for "child care sickness benefits" to the parent of a gravely ill child when the parent has to remain home to care and nurse such child. The following prerequisites must be fulfilled for this benefit:

The child may not be older than 12 or it has to be disabled and dependent upon support.
A physician's certificate must show an illness
- which is terminal and has come to far advanced stadium and
- a treatment is not possible and a palliative-medical treatment is necessary or wished by a parent
  and
- gives expectation to a limited life expectancy of weeks or a few months.
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What about those privately insured? Do we also get any kind of child sick pay?

Usually privately insured employees are not eligible for child sick pay. Only in seldom cases does a health insurance contract grant such possibility. This relates to the fact, that only the health of the insured person is covered. Private health insurance has nothing to do with solidarity among the insured as provided by the statutory insurance. So, before writing any kind of child sick leave off, double check with your contract or insurance broker.
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Health Insurance

2008-11-25T02:56:21+01:00

Health Insurance

When living in Germany, you are required to have sufficient health insurance (§5 AufenthG i.c.w. §2 AufenthG). We will tell you hear what you need to know.

Insurances

2008-11-25T02:54:37+01:00

Insurances in Germany

This section will introduce you to the most important types of insurances. While some insurances are mandatory (car = Kfz-Haftpflichtversicherung, health = Krankenversicherung, professional liability [for chambered professions] = Vermögenschadenhaftpflichtversicherung, etc.), most of them are voluntary.

Legal Insurance

2008-11-25T02:58:52+01:00

Legal Insurance

In Germany, there is a very accurate saying concerning laws: Recht haben und Recht bekommen… (“Being right and getting it.”) Attorneys and court cases can become costly.

private health insurance

2011-04-15T10:42:56+02:00

Private Health Insurance Coverage in Germany

Statutory insurance is considered as the insurance for the poor, supplying only standard treatment. The legislation for statutory insurance tends to limit the payment of the doctor’s performance. Applying for private insurance? Be sure to list every serious illness you have had.

Private Liability Insurance

2010-11-03T07:26:17+01:00

Private Liability Insurance

What kind of insurance is this private liability? What does it cover?

It is all about covering the damages you did, when you acted as Goofy! The basic rule is that the situation prevailing before the incident should be restored. According to the law, the insurance company must replace the current value of the items which were damaged or destroyed (§249 BGB) The rules distinguish between personal damages, material damages, financial damages and material damages to rented property.
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Aha. What do you mean with personal damages?

Such will be the case, when someone is injured, their health is ruined, or they may even die. In addition to the direct costs such as medical bills and therapy, compensation may be required for the loss of income and other career problems caused. Compensation for pain and suffering is included in this category.
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What is covered with financial damages?

These are such losses in money which have no direct connection with personal or material damages. This will be the case, for example, when that one spouse can't take care of the household due to an accident because she or he is hospitalized.
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You mentioned material damages. Are these damages such that materialize when I am supposed to come up for damages?

Not really. This will be damages to or destruction of physical items such as clothing, or sports equipment, and cars (outside of traffic).
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Is there anything not insured? I bet they will always have some loopholes to escape liability.

Oh, sure they have loopholes! Or did you honestly believe they come up for everything? The most important exclusions are:

damages which are caused intentionally,

·damages connected to criminal activity,

damages caused between people who are covered by the same contract (such as husband and wife),>

>damage to glass in rented residential property (alternative coverage is available for this).
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Hey, while trying digest their STC and especially exclusions, I noticed that my greatest worry is not covered. Is there anything I can do about it?

First of all, "exactly" determine which coverage you are missing. Then make an appointment with your insurance agent and discuss this with him. Either this issue can be covered with a surcharge or it is already covered in certain special policies - when it is at all insurable.
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This private liability sounds great, especially when I think of little my ones. Please relieve my fears by telling me that any and all mischief of our minors will be covered by such insurance.

Well, a lawyer would want to start differently to answer your question. Are children liable for their "Oh, ohs"? Children younger than 7 years old are not considered responsible for their actions and even their parents are not necessarily considered liable for damages they cause. For more information on this topic please visit the page on torts by clicking this sentence. Nonetheless most insurances provide basic coverage. Basic coverage means that only legal responsibility will be covered - no more no less. Consider taking out enhanced coverage which also pays for damages which are not legally obligatory and which would not be refunded by a standard insurance contract.
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Typical! Those who need the most protection are excluded or need special coverage. Why aren't children fully covered?

Because many incidents caused by young children happen in the homes of friends and family. In such cases you would wish to have the matter settled whether or not you are legally obliged.
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An example: Mr. and Mrs Typical visit a friend´s garden party together with their 5-year old son Vincent. The front gate is securely closed and so the children can play in the garden without constant supervision. Suddenly Vincent proudly shows his stunned parents the "picture" he has "drawn" with a stone on the host´s car which was parked in the driveway. Although the parents would clearly feel morally responsible for the damages, the law does not oblige them to pay. A standard liability insurance would follow the legal obligation and refuse any claim as unfounded. If your contract includes the enhancement „Schäden durch nicht deliktfähige Kinder (Damages by children below the age of responsibility)", the insurance will pay up to the maximum limits stipulated in the contract.

My forgetfulness somewhere lost my keys. And to top this disaster, my landlord wants me to pay for new locks in the house. Come on, I not Rockefeller. Of course, I will pay for my own keys but I am reluctant for all others in the house. Will not my insurance cover this?

If you lose your house keys, the safest thing to do is to have all the relevant locks changed! Do or let this be done first before any other discussion!! The loss of keys is not typically covered by a standard liability insurance. When this is of importance to you take out enhanced coverage known as „Privater Schlüsselverlust" which can refund the costs of changing the lock, temporary locks where necessary, or supervision of the property for up to 14 days. Damages for lost keys will easily soar up to a four digit sum, when you live in an apartment building.
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Who can be insured?

	Single Tariff	Family Tariff
Policy holder	ü	ü
Spouse (also including civil partner)	-	ü
Life partner	-	ü
Minor children	-	ü
Adult children (single, during education)	-
- Other people living in the household - Disabled children (no age limit) - Widowed parent, au pair, exchange student living in household - People employed in the household	-	Depends on the tariff. Ask for special information if any of these points apply.
(insurance company must be informed of person´s name)

If your friends or family are moving home, then you´ll probably be willing to lend them a hand. But are you covered by your insurance if you drop their new electronic equipment and damage it?

Not automatically! The legal position is clear: the person who is doing someone a favour is not liable if no gross negligence or purpose is involved. The standard insurance policy will reject the claim as unjustified. To avoid unpleasant situations look out for the enhancement „Gefälligkeitsschäden" which will include coverage for such cases.
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Do you sometimes borrow a laptop from a good friend? Be careful! Are you really sure that your private liability insurance will cover this damage?

Damages to items you have borrowed are a classic case for exclusion according to the standard rules of liability insurance. Remember that one clumsy move is enough for you to knock your cup of coffee over the laptop and ruin it. Only a few top quality insurances offer coverage in such cases. And even when you do have such coverage they might not cover the full value. This is called „Schäden an gemieteten bzw. geliehenen Sachen".
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Standard private liability insurance covers the damage you cause to rented accommodation (Mietsachschäden). Is there any kind of codicil or enhancement for this situation?

Coverage for rented accommodation may however be limited to damage to the building substance and to items permanently fixed within the building (such as the bath tub). But what if your romantic candlelight dinner in your holiday home results in a fire, ruining the furniture and decorations? This enhanced coverage means that the costs for the inventory are also refunded.
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Knowing my insurance company well, they bring out some kind of new coverage on a frequent basis. Is there not a possibility to be always up to date?

The insurance world is also subject to constant innovation and product development. If you always want to be up to date, you need to rework your policies on a frequent basis. Some insurers include such an option. When such improvements lead to a higher premium, you have the statutory right of refusal. You can have the extraordinary right to terminate the contract. (§40 VVG) §

Hey that sounds cool. Whenever my insurance gets more expensive, I can instantly change insurers. Right?

Almost. §40 VVG gives you the right to give extraordinarily notice to the contract in the case when your insurance company changes its premium without changing the scope of coverage. In other words, when you insurance wants to raise its bill only to compensate rising costs, then can do so but you have the right not to accept it by switching to another company.
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And what happens, when I used to live in house full of big glass doors and windows and now moved to a house with significantly less grand windows. Do I have the right to reduce the premium?

Oh yes, you do (§41 VVG)! Once you inform your insurance company on this reduction, they will have to reduce the premium in accordance to the reduction of the risk. §

Basic contents provided by: Keith Tanner

Retirement Pension

2008-11-25T03:00:01+01:00

Retirement Pension

Germany's once generous and comprehensive social welfare system is under pressure with a funding crisis resulting in part from the graying of the nation's population. This is forcing the government to undertake major and unpopular reforms. The German government has moved to encourage workers to supplement their state pensions with private retirement schemes by offering tax breaks. This topic is colloquially dubbed as “Riester-Rente”, following the (federal) Secretary of Labor, Walter Riester. A paralell system is the "Rürup-Rente".

I have worked in different countries. At what age, can I have a claim on old-age pension.

There is no world-wide uniform retirement age. Old-age institutions grants pensions in accordance with domestic law. Therefore, it is possible that you can be “of age” for retirement in one country but not in another one. To avoid disadvantages, consult your insurance fund at home or where you so far worked. Don’t forget to ask when you latest have to apply for old-age pension.
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If I work in Germany for less than 5 years and go back home, what happens to my premiums for the statutory retirement pension?

You are right about the sixty-month threshold. After accumulating that many months of payments in any period of time, you have a claim to German social security. If you spend less than five years in Germany and make no claim to social security here, you can apply for a refund after you leave.
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And what happens when I leave after 10 years?

Having paid premiums to German pension authorities for more than sixty months, you are entitled to retirement pension. You may get the German pension on top of your national one, or you may get your national pension based on the time you spent at home and in Germany. If you can collect a German pension in addition to your national one, or if you have time credited to your domestic social security, may depend on certain facts. If your home country is a member of the EU or has signed an agreement with Germany on mutual recognition of time for social security benefits, then you will not receive a separate German pension. “German time” will be added to your domestic pension.
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What is this Riester-Rente all about?

It is simple. Because the labor force in Germany is declining and the numbers of elderly are increasing, the statutory old-age pension cannot provide a real sustainable income for all pensioners in the future. You have to set up your own pension scheme. As an enhancement for this, you will receive tax rebates.
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Who is entitled to a Riester-Rente?

Anybody, who is employed, is entitled to a Riester-Rente. If you are self-employed and married to an employee then you also qualify – though only indirectly. In other words, if you are self-employed you have to take care about your old-age pension all by yourself.
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Aren't there any catches?

Yes and no. When you are not fully subject to German taxation anymore then you will loose your eligibility. But not only that, you will have to return all public benefits. This will be the case, when you leave Germany.
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Goodie, all these employees get their privileges, and as a self-employed I get away empty-handed. Can this be?

No, this is not really the case. As a self-employed, you are directly entitled to a similar program called "". When you save for later days in a certified program, your premiums will be tax deductible as personal expenses. Again you, as a self-employed, you will be privileged because even when you leave the country, you will not have to return any tax benefits.
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What will this cost me?

This will cost you a minimum portion of your yearly income (including any bonuses) according following table.

From	Portion of yearly income
2004	2%
2006	3%
2008	4%

And what do I get from it?

Whoever pays the full savings rate shall receive the following:

From	Single	Couples, each having their own Riester-contract	Per each child receiving child’s money
2004	€ 76	€ 152	€ 92
2006	€ 114	€ 228	€ 138
2008	€ 154	€ 308	€ 158 or € 300*

* = for each child born starting January 1. 2008.

For further details contact your insurance broker!

Will Riester-Rente suffice in my old days?

No! Absolutely not! Do not rely exclusively on Riester and other statutory pension plans! Don't forget that your company might have sufficient pension schemes. Ask your employer about this. If he can't supply you with any plan than you can ask that he opens a direct insurance for you.
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