Disability is equivalent to incapacity for work
While occupational disability (BU) and incapacity for work (AU) are used colloquially interchangeably, the two terms describe completely different situations. Persons unable to work are temporarily unable to perform their professional duties. It is essential that incapacity for work describes a temporary condition and implies the prospect of improvement and a return to work. For example, in the event of a viral infection or a broken bone, a doctor will temporarily put you on sick leave, which is accompanied by a certificate of incapacity for work.
The situation of occupational disability, on the other hand, describes a permanent state. Unable to work is defined as a person who is unlikely to be able to perform their last job in the long term, for example due to a chronic illness. A medical report then decides whether a person is incapacitated for work.
Disability insurance pays your pension if the worst comes to worst
If occupational disability is established and occupational disability insurance is available, the insured person pays a pension if the affected persons have lost at least half of their ability to pay. Persons without disability insurance are only entitled to a disability pension.
In case of temporary incapacity to work, coverage is provided by the health insurance company and the employer. Employees with statutory insurance receive their normal wages from their employer for six weeks in case of illness. If the incapacity for work lasts longer, the health insurance company pays sickness benefit, which amounts to a maximum of 70 per cent of the gross salary and does not exceed the maximum amount of 112.88 euros per calendar day. Entitlement to sick pay is limited to a period of 78 weeks in any three-year period and is reduced by the employer’s six-week continued wage payment period. Individuals with private health insurance are not entitled to statutory sick pay in the event of a longer period of incapacity for work and should consider taking out private daily sick pay insurance.
Disability insurance with AU clause
Persons who want additional incapacity for work insurance have the option of adding a so-called AU clause to their disability insurance. Thanks to this AU clause, insured persons receive benefits from occupational disability insurance, even in the absence of permanent occupational disability. Disability insurance with clause AU pays retroactively in the event of incapacity for work for at least four months in order to close the income gap between the end of continued wage payments by the employer and the resumption of employment.
Finance.net editorial staff
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