Insurance firms must be duly enrolled in the registry of insurers.

The Munich Regional Court recently handed down a decision (Case No.: 17 S 6937/24) that sheds light on the Hint and Information System (HIS) used by insurers and the implications of hypothetical claim settlements.

The case in question involved a traffic accident, where the owner of the damaged car demanded compensation from the insurer of the party at fault. The owner, seeking a swift resolution, had the car repaired and submitted a so-called repair confirmation from an expert. However, the repair confirmation was issued not by the original expert but by another one, and the images included in the repair confirmation only showed the vehicle from a distance. It was not clear which works had actually been carried out in the repair.

The amount of repair costs was determined by an expert appointed by the owner, resulting in a figure of 6,717 euros, which the owner wanted to settle hypothetically, i.e., based on the expert's report without proof of repair. The defendant insurer then reported this event to the HIS system, citing "hypothetical settlement" as the reason.

The court negatively assessed the lack of comparison between the images and the repair path described in the expert's report. Furthermore, the repair carried out was not proven to be complete and proper, and there was no proof of the installation of original replacement parts. Consequently, the court ruled that the requirements for deletion pursuant to the General Data Protection Regulation (GDPR) were not met.

It is worth noting that the German Lawyers' Association (DAV) Traffic Law Working Group refers to this case, emphasising the importance of thorough investigations and proper documentation when dealing with insurance claims.

Also, the HIS system is designed to help prevent insurance fraud. However, even if a repair is proven, a HIS entry can still remain if it is unclear whether the damage has been completely and properly repaired, or if a repaired vehicle has suffered significant loss of value. If further damage occurs to the same vehicle later on, this could result in a more thorough examination of the claim to prevent already settled claims from being submitted to the insurer again.

In addition to this case, a claim can be entered in the HIS system under certain circumstances, such as atypical damage occurrences or other peculiarities. This serves as a reminder for all parties involved in insurance claims to ensure that repairs are properly documented and proven to maintain the integrity of the system.

In a separate matter, the Munich Regional Court dismissed the plaintiff's claim in its entirety in a case related to the Stachus underground shopping area. The plaintiff, the tenant of the former Kaufhof space (Karlsplatz 21), sued the landlord Zechbauer-Gesellschaft regarding usage and rent issues of the space. The court found that there was no proof of the installation of original replacement parts, and the repair was not proven to be complete and proper, leading to the dismissal of the claim.

These rulings underscore the importance of proper documentation and proof in insurance claims and legal disputes, ensuring fairness and transparency in the process for all parties involved.