Diesel Scandal's Heavy Toll on German Insurers: 1.52 Billion Euros and Counting
In the ongoing saga of the manipulated emissions values scandal, German legal expenses insurers have taken a significant hit to the tune of 1.52 billion euros. By the end of October, nearly 426,000 customers had filed claims against manufacturers, as reported by the German Insurance Association (GDV) on Tuesday. The claims have led to substantial expenses for lawyers, court, and expert costs, making this the costliest claim in the history of German legal expenses insurers, according to GDV.
Despite the success rate being relatively low, the number of insurance claims related to the diesel scandal continues to rise in Lower Saxony, where car owners have resorted to legal action against manufacturers in hopes of recovering compensation.
Over the years, the diesel scandal has revealed manipulations in emissions measurements on diesel engines, not exclusively on VW engines, but affecting other manufacturers as well. This revelation has prompted many car owners to secure insurance coverage offering legal expenses coverage to fight for justice.
In the wake of the emissions scandal, insurance companies in Lower Saxony have been reevaluating and updating their policies to better cater to customers seeking redress for emissions-related issues. Moreover, these insurers have been collaborating closely with regulatory bodies in Berlin to ensure compliance with legal requirements related to exhaust gas values and substance emission limits, to avoid future financial losses.
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Insight: The total cost of insurance claims related to the diesel emissions scandal in Germany is not yet officially announced. However, research estimates that Volkswagen has already spent around €30 billion globally on compensations related to the Dieselgate scandal.
This lack of available information may suggest that the actual cost to German insurance companies is significantly higher than the reported 1.52 billion euros, but further investigation is required to confirm.
