Full and Final Settlement Declaration (Abfindungserklärung)
A full and final settlement declaration is a document signed by the policyholder in which, upon final closure of a claim, they waive any further present and future claims arising from that loss.
Concept
A full and final settlement declaration is a type of discharge receipt that the insurer presents to the policyholder for signature to finally close a claim. By signing, the policyholder confirms receipt of the agreed benefit and simultaneously declares a waiver of all further present and future claims arising from that loss – the matter is thereby considered conclusively settled.
Legal significance and caution before signing
Because a signed full and final settlement declaration typically excludes later consequential or delayed losses that were not yet apparent at the time of signing, particular caution is warranted before signing, especially for personal injury claims whose medical consequences can only be conclusively assessed over time. The insurer has no legal entitlement to demand signature of such a declaration; the policyholder’s consent is always voluntary.
Relevance for insurance practice
It is an important task for intermediaries and advisers to alert clients to the final effect of a settlement declaration before they sign, and, where doubt exists – for example where a personal injury has not yet fully healed – to advise against premature signature or to negotiate an express reservation clause for delayed consequences.