Liability issues with unit-linked life insurance: which damages are the insurance company liable for?

When looking for a suitable form of investment for their savings, many customers come across a unit-linked life insurance policy. Various benefits are offered by the insurance companies, such as tax advantages for pay-outs or privileged claims in the event of bankruptcy. 

The distribution of such unit-linked life insurance policies is usually not carried out directly by the insurance company itself, but through a network of intermediaries who work for the insurance company. This means that customers have no or very little contact with the insurance company, but only with the intermediaries commissioned by it. 

Problems usually only arise when a loss occurs in the investment of the assets paid into the insurance policy. The question then inevitably arises as to whether the insured person can claim for damages, and if so, against whom. 

(By Dr Matthias Niedermüller, M.B.L.-HSG, published in Liechtenstein Journal 1/2012)