Since 1 September 2019, the Act of 22 April 2019 on legal expenses insurance (M.B. 8 May 2019) and its implementing decree of 28 June 2019 (MB 12 July 2019) have come into force.
There are several reasons why it is in your interest to take out legal expenses insurance, as:
- You can claim a tax relief of 40 per cent of the premium, capped at €310 (representing a maximum tax benefit of €124), provided that the policy offers the minimum cover specified by law.
- Your solicitor’s fees will be covered
in a wide range of areas: divorce (3-year waiting period),
construction law (5-year waiting period), contractual
and non-contractual obligations, tax law, administrative law,
inheritance law, criminal defence (in part), disputes relating to
employment contracts… - There is only one excess (of up to €250 per
claim), or even none at all (in the event of recourse to judicial or amicable mediation
or conciliation). - The maximum cover limits are €13,000 excluding VAT for civil matters, €13,500 excluding VAT in criminal matters; these may be reduced to €3,375 in divorce cases, and to €6,750 excluding VAT in construction or employment contract cases.
You will therefore only pay out of your own pocket for any costs exceeding these amounts.
S-LAW regularly works across all areas of law with insurance companies such as DAS, ARAG, AG, etc., which cover their costs and fees to the great satisfaction of their policyholders.
