§ 81 I VVG (German Insurance Contract Act) states that the insured loses any insurance benefit if he acted with intent whereas § 81 II VVG only gives a pro rata reduction in case of gross negligence. However, the Federal Court of Justice now also held that in cases of gross negligence the insured can lose his insurance cover completely. According to the court's judgment, it is in accordance with § 81 II VVG that the insured completely loses his insurance cover in case of a driver of a car who caused an accident triggering the claim for insurance while being very drunk (here 3.18%).  

Federal Court of Justice

4th Senat for Civil Law

22 June 2011