General Terms and Conditions approved by the Federal Board of Insurance Brokers
The insurance broker (‘IB’) shall broker insurance contracts between insurance companies and insurance customers (those customers, the ‘Policyholders’) independently from the IB’s interests and those of any third party, especially those of the insurance company (insurer). The IB commissioned by the Policyholder to protect the Policyholder’s interests in private, operational insurance matters works for both parties to the insurance contract but shall protect mostly the Policyholder’s interests. The IB shall use proper commercial diligence pursuant to the Austrian Brokerage Act (Maklergesetz, MaklerG), the General Terms and Conditions (GTC), and any brokerage contract entered into with the Policyholder. As soon as they are agreed, the GTC will be a binding basis in business transactions between the parties and in handling business cases.
1. Duties of the Insurance Broker (IB):
1.1. ‘Protecting interests’ comprises professional consultation with the Policyholder that includes explaining the insurance coverage to be brokered, according to the needs and requirements. The IB shall create an adequate risk analysis and an adequate coverage concept based on the information disclosed to the IB and the documents handed over.
1.2. The IB shall broker the best possible insurance coverage for the Policyholder under the circumstances of the individual case. The protection of interests is restricted to insurers with a branch in Austria. Protecting the interests of other insurers must be based on a fee agreement for the increased expense. The IB secures optimal coverage, with sufficient processing time and due consideration of value for money: the amount of the insurance premiums, the insurer’s professional competence, their management of claims, their willingness to oblige, the contract period, the possibility of contract termination in the event of damage, the amount of deductibles, and more.
1.3. Only if a fee agreement exists, is the IB obligated to act in accordance with § 28 items 4 (disclosure of legal actions, etc.) and 5 (verifying the insurance certificate) MaklerG. This does not apply to consumer transactions.
1.4. Only if a fee agreement exists, is the IB obligated to act in accordance with § 28 items 6 (support during a claim, etc.) and 7 (ongoing review, etc.) MaklerG.
1.5. The IB shall not disclose any of the Policyholder’s trade or business secrets the IB learns about during their consulting, shall protect those secrets, and shall forward to the insurer only information that is necessary to assess the risk that is covered or is to be covered. The Policyholder agrees to the processing of their personal data with the help of automated processing operations.
1.6. Protecting the Customer’s personal data is an important matter for the IB. All data processing must comply with the statutory provisions (GDPR, the Austrian Data Protection Act), and be based on the contract entered into with the customer and any declaration of consent issued by the customer.
2. Duties of the Policyholder:
2.1. The Policyholder shall truthfully and completely disclose all data, information, and documents that are necessary and relevant for taking out the desired insurance policies and for the IB to perform their assignment correctly. The Policyholder shall also disclose to the IB in writing without undue delay all changes relevant for the insurance coverage, including but not limited to address changes, changes of activities, work abroad, increase in risk, etc. If necessary, the Policyholder shall participate in a risk assessment by the IB or insurer after giving notice and making an appointment and shall point out special risks on their own initiative.
2.2. The Policyholder acknowledges that an application signed by the Policyholder, or signed by the IB for the Policyholder, will not activate the insurance coverage unless it is accepted by the insurer. The Policyholder acknowledges that an uncovered period can arise between the signature of the insurance application and its acceptance by the insurer. The Policyholder shall check all the insurance documents transmitted by the brokering of the IB for factual discrepancies and any deviations from the original application and notify the IB thereof for correction.
2.3. The Policyholder acknowledges that oral side agreements with the IB and/or its employees are ineffective and all orders and instructions to the IB must be issued in writing; discrepancies from the requirement for the written form must also be in writing. This does not apply to consumer transactions.
2.4. The Policyholder acknowledges that, as an insured party, they must comply with all obligations that are based on the legal statutes and insurance terms if an insured event occurs, failing which the insurer will not be required to perform.
3. Miscellaneous
3.1. Due to the great number and diversity of the business transactions, the IB’s liability is limited to intent and gross negligence for the entire business relationship. In consumer transactions, the exclusion of liability applies only to damage other than personal injury. Except in consumer transactions, the liability for gross negligence is limited to the statutory minimum liability amount and does not extend to loss of prospective profit.
3.2. The contract parties shall transfer the GTC to any legal successors and confirm that the GTC will also apply if the Policyholder or the IB alters their legal structure, contributes their company or assets in another company, or carries out a merger; or if the legal entity of the Policyholder or the IB otherwise changes. The contract parties shall perform all legal actions that are necessary to transfer the GTC. If either party is replaced, they shall notify the other party in writing without undue delay.
4. Fee claim
The IB’s fee for brokered applications is the commission; beyond that, the IB is entitled to a fee (if a written agreement has been entered into) and reasonable remuneration from the Policyholder pursuant to 1.2, 1.3, and 1.4.
5. Place of application
5.1. Unless otherwise agreed for an isolated case, the IB shall render its activities only in Austria.
5.2. Unless compulsory statutory regulations stipulate otherwise in an isolated case, this agreement is governed exclusively by Austrian law and the place of performance is the IB’s branch office.
5.3. Unless compulsory statutory regulations stipulate otherwise in an isolated case, all disputes will be settled by the court having subject matter jurisdiction where the IB’s branch office is located. This does not apply to consumer transactions.
6. Any agreements that deviate from the GTC must be regulated in a separate written brokerage contract. Finding one or more items in the GTC to be ineffective will not invalidate its remaining items.