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 theinsurer , then only that difference amount is considered to be the insurance premium. A  reimbursementof a part of the premium for  a no claims period (Bonus) is also considered to be a share of profit.