Who gets the money from group accident insurance in Germany?
In short
The money from group accident insurance in Germany is meant for the injured employee, or in case of death for the named beneficiaries or heirs. Who gets paid depends on the policy: with a direct claim the insurer pays the employee, otherwise it pays the employer, who must pass on every euro. With a EUR 100,000 base sum and 20 percent disability, that is EUR 20,000.
What a claim can pay, calculated with a EUR 100,000 base sum without progression.
Example
Typical range
Permanent knee impairment, 20 percent disability
EUR 20,000
Loss of a hand, 55 percent under the industry model table
EUR 55,000, considerably more with progression
Loss of an arm, 70 percent under the industry model table
EUR 70,000, considerably more with progression
Premium for this cover for office staff in a group
about EUR 36 to 70 per person a year
Benefits are our own calculation, Gliedertaxe values from the German insurers' model wording;
your policy may use higher values.
Premiums from published examples, as of October 2026.
Worked example
Software developer injured cycling at the weekend
Group policy without a direct claim, EUR 100,000 base sum, 30 percent permanent disability after the accident.
Disability benefit (30 percent of EUR 100,000)
EUR 30,000
Insurer pays
the employer as policyholder
Passed on to the developer
EUR 30,000, in full
Taxed as salary afterwards
premiums paid for her, about 5 years × EUR 80 = EUR 400
The developer receives EUR 30,000. Only about EUR 400 of past premiums are taxed as salary, not the benefit itself.
Two policy structures, one recipient
Group accident insurance is taken out by the employer, but the employees are the insured persons. Under section 179 VVG, accident cover for another person is deemed to be for that person's account unless stated otherwise. Section 44 VVG then gives the rights under the policy to the employee.
Without the policy document, however, the employee can only enforce those rights with the employer's consent. Many German group policies therefore state explicitly whether employees may claim directly or whether only the employer exercises the rights. Either way, the money from group accident insurance is meant for the employee.
Structure
Paid to
What the employee does
Employee with direct claim
the employee directly
report the accident and apply to the insurer
Only the employer exercises the rights
the employer, who passes it on
report the accident through the employer
Death with named beneficiary
the beneficiaries
relatives report the death with a death certificate
Death without named beneficiary
usually the heirs
provide a certificate of inheritance
The employer as trustee
If the insurer pays the employer, the employer may not keep the money from group accident insurance or set it off against salary. German labour courts treat the employer as a trustee who must hand the benefit over to the injured employee or the heirs.
Under section 45(3) VVG, the insurer only has to pay the employer if the employee consented to being insured. Many insurers therefore ask for a consent form at the start or at the latest when a claim is made.
In case of death: beneficiaries and heirs
For the death benefit of group accident insurance, section 185 VVG applies the beneficiary rules from life insurance. The employee can name who should receive the money, for example a partner or children.
Without a nomination, most German policy wordings pay the heirs. If you are not married and want a specific person to receive the money, especially when family abroad might inherit under a different law, put the nomination in writing.
How much money is paid
The disability benefit of group accident insurance depends on the base sum and the degree of disability. For limbs and senses, a fixed table called Gliedertaxe sets the percentages, in the industry model wording about 55 percent for the loss of a hand. Better policies use higher values.
Progression increases the payout for severe disability. Depending on the scale, high disability can pay several times the base sum. A death benefit, hospital allowance or accident pension may come on top if agreed.
On top of statutory accident cover
Group accident insurance pays a fixed sum under the policy, regardless of what the Berufsgenossenschaft (statutory employer accident insurance), health insurance or pension insurance pays. Nothing is deducted, and it also pays for leisure accidents, which statutory cover in Germany ignores.
It does not replace medical treatment or ongoing income. If your main worry is losing income after an accident or illness, disability income insurance (Berufsunfähigkeitsversicherung) is the better tool.
Tax on the payout
If the employee has a direct claim and the premiums were already taxed, a one-off lump sum from group accident insurance is generally tax-free.
Without a direct claim, the premiums paid for that employee so far are taxed as salary when the benefit is paid, capped at the payout. The payout itself is not treated as salary.
Step by step
Report the accident to your employer at once and, depending on the policy, to the insurer.
See a doctor and have your injuries documented.
Find out whether you have a direct claim or whether your employer applies for the benefit.
Watch the deadlines in the policy for the medical assessment of disability.
If the employer receives the money, get written confirmation that it has been passed on in full.
Checklist
Policy clearly states who exercises the rights
Employees have consented to being insured
Death beneficiary has been named
Employees know how to report an accident
Gliedertaxe and progression are known
Common mistakes
Believing the money belongs to the employer because the employer pays the premium
Not reporting a leisure accident because it has nothing to do with work
Missing the deadlines for the medical assessment of disability
Not naming a beneficiary although a specific person should receive the death benefit
Questions and answers
Frequently asked
May my employer keep the money from group accident insurance?
No.
The benefit is meant for the insured employee.
If the employer receives it, the employer must pass it on as a trustee.
Can the employer set the benefit off against my salary?
Not against salary.
Whether it can be credited against other claims is a specific employment law question for a lawyer.
Am I paid for an accident on holiday abroad?
Yes, if the policy runs 24 hours, which is usual for German group policies, and usually worldwide.
Work-only policies pay only for work-related accidents.
What happens to my claim if I leave the company after the accident?
The claim for an accident during your employment remains.
Cover for later accidents ends when you leave.
Who receives the money if no beneficiary is named?
Under most German policy wordings, the heirs.
What counts is what the policy says.
Do I pay tax on the payout?
Generally not on a lump sum.
Without a direct claim, the premiums paid for you so far are taxed once as salary.
