This allowance compensates for loss of salary due to incapacity for work caused by an accident, illness or maternity. Many employees already have sufficient coverage through their employer. Individuals who are not members of such a collective insurance (e.g. self-employed persons or homemakers) may take out optional daily allowance insurance for a premium.
Daily sickness allowance as regulated by the Health Insurance Act (KVG)
The Health Insurance Act (KVG) forms the legal basis for this kind of daily allowance insurance. The health insurance companies are obliged to accept anyone who wishes to buy daily allowance insurance according to the KVG, but policyholders are required to answer questions on their health in order to be admitted. However, insurers may only impose provisos for pre-existing health conditions for a maximum of five years. Collective insurance is available.
Other characteristics of daily sickness allowance insurance (according to the KGV): Premiums are identical for men and women. Salary loss due to maternity is covered as long as insurance is taken out at least 270 days before birth.
However, with some health insurance providers, the maximum benefits paid by daily allowance insurance according to the KVG are insufficient.
Daily sickness allowance as regulated by the Insurance Policies Act (VVG)
The Federal Act on Insurance Policies (VVG) forms the legal basis for this kind of daily allowance insurance. In the case of daily allowance insurance according to the VVG, providers have the right to reject applications for affiliation (freedom of contract) and define different premiums depending on age, gender, state of health and other criteria.
Insurance for salary loss due to maternity is often only available for an additional premium. The available insurance products are usually not suitable for homemakers since some providers require a proof of loss of income.