“Being in the right” does not necessary mean “winning the case”. It can be an expensive process enforcing your rights, and the hidden risks are not to be underestimated. Losing a case usually results in high legal, court and expert costs, and even if you win sometimes not all costs are covered. A carefully chosen legal expenses insurance policy can at least remove the financial worries. The latest edition of the the FMA’s consumer information series “Let’s talk about money” entitled “Being in the right can be costly” explains what consumers need to look out for when concluding a legal expenses insurance policy.
In our modern society, almost all areas of daily life are legally regulated. The legal risks that can be covered by legal expenses insurance are correspondingly broad and varied: employment law, property and tenancy law, compensation and criminal law are just a few examples of the areas covered. Hardly anyone is exposed to all possible legal risks, and therefore legal expenses insurance is offered as a range of different legal coverage modules, which may on the one hand be individually tailored, or already be compiled in package forms. The modules can be extended or also restricted. It is important to avoid being double insured, as credit cards, club memberships or legally compulsory representations of interests already cover specific areas of legal expenses.
It is also particularly important to check exactly which costs are actually covered: only the costs a lawyer or also the procedural costs, and only in court or also in relation to administrative authorities; are costs also covered for experts, opinions, interpreters and witnesses; are the costs of the other party covered where a payment obligation arises? What rights and obligations does the insured person have: a free choice of lawyer? Are certain types of legal disputes excluded (frequently the case for inheritance disputes; while risks arising from gambling, divorce and war cannot generally be insrued against)? Is there an excess to be paid? Are they waiting periods for coverage to begin in certain legal areas? Is the sum insured capped, and is the capped amount appropriate?
These questions and many more about legal expenses insurance are explained and answered in the new edition of “Let’s talk about money” in clear, simple and easy to understand language on 2 pages of A4 (in German only) and online (in German and English).
This publication can be found on the FMA’s “Let’s talk about money” microsite at: https://redenwiruebergeld.fma.gv.at/en/being-in-the-right-can-be-costly
Journalists may address further enquiries to:
Klaus Grubelnik
+43 (0)1 249 59 – 6006
+43 (0)676 – 88 249 516