OGH Clarifies Statute of Limitations for Legal Expenses Insurance Claims

Dec 12, 2025 Benn-Ibler Rechtsanwälte

In a recent decision, the Austrian Supreme Court (Oberster Gerichtshof, hereinafter OGH) provided clarification regarding the commencement of the limitation period applicable to claims for coverage or information against a legal expenses insurer. The ruling addressed whether a policyholder is entitled to insurance coverage for litigation against a credit institution when the claim is asserted several years after the conclusion of the relevant preliminary proceedings.

In the case at hand, the plaintiff requested insurance coverage for litigation against the bank due to receiving incomplete information regarding his deceased parents’ assets. The insurer denied the claim, referencing the statute of limitations. The plaintiff contended that the necessity for legal action only became evident at a later date, asserting that the limitation period had not yet commenced.

Legal Claims Clock Starts When Objective Interest Is at Risk

The OGH held that the limitation period did not commence when the plaintiff personally believed further action against the bank was required. Instead, the determining factor was when it became objectively evident that legal proceedings against the credit institution were necessary to safeguard his interests. This point was reached, at the latest, upon the conclusion of the probate proceedings and the termination of the criminal investigation.

The later legal actions initiated by the plaintiff against his nephew did not impact the limitation period, as these proceedings were not appropriate from the beginning for enforcing the claim for information against the bank. Suspension of the limitation period occurs solely when the proceedings are specifically intended to enforce the relevant claim.

Clearly defined limits for coverage claims

The OGH reiterated that claims for coverage under legal protection law must be independently evaluated according to statutes of limitation. The timing for when the limitation period begins is determined by the relevant objective interests, not by what actions the policyholder might think are appropriate. Because the claim was filed too late, the insurer was not required to provide coverage.

OGH 7 Ob 158/25y (22 October 2025)