Direct claims settlement in France Franois Werner Managing

Direct claims settlement in France François Werner, Managing Director AIDA symposium, Budapest, 26 th November 2010 This document is the property of the Fonds de Garantie and may not be circulated or used without written permission.

Direct claims settlement in France Basis: the ordinary law § The compensation payer is responsible A change: direct settlement § Separation between the party liable for the compensation and the eventual payer 2

Direct claims settlement in France What is direct settlement? Direct settlement consists in the victim's insurer taking on the burden of investigating the claim and settling the prejudice on behalf of the responsible party's insurer. 3

Direct claims settlement in France § 1967: Direct settlement introduced for water damage claims § 1968: IDA Convention - direct settlement of material motor claims § 1994: IRCA Convention - direct settlement of minor personal injury claims 4

Direct claims settlement in France I. Organising compensation II. Application mechanisms 5

Direct claims settlement in France I. Organising compensation 1) Proving the material facts 2) Determining the amount 3) The need for speedy settlement 6

Direct claims settlement in France 1) Proving the material facts l A standardised document: the parties' accident report, which identifies them and indicates how to approach the determination of the responsible party l An additional tool: a scale created by insurers that organises recourse between them 7

Direct claims settlement in France 2) Determining the amount To avoid any disputes, the convention established: l a single standardised document l agreement on the items to be compensated l a single list of adjusters 3) The need for speedy settlement 8

Direct claims settlement in France II. Application mechanisms A. Financial aspect B. Legal aspect 9

Direct claims settlement in France A. Financial aspect l Lump sum enabling recourse between insurers l Offsetting every month between insurers 10

Direct claims settlement in France B. Legal aspect l An arbitration board to avoid disputes between insurers l An application board to monitor legislative and case law developments l An ethics committee to ensure observance of the spirit of the convention 11

To contact us: Siège social : 64 rue Defrance - 94682 VINCENNES CEDEX Tél. : + 33 (0)1 43 98 77 00 Site de Marseille : Les Bureaux du Méditerranée 39 bd Vincent Delpuech 13281 MARSEILLE CEDEX 06 Tél. : + 33 (0)4 91 83 27 27 SARVI : 75569 Paris Cedex 12 Tél. : + 33 (0)8 20 77 27 84 Site Internet : www. fondsdegarantie. fr 12