Presentation on theme: "Direct claims settlement system for MTPL insurance in Belgium"— Presentation transcript:
1Direct claims settlement system for MTPL insurance in Belgium Daniel Frala WarsawDatassur September 2009
2The Belgian motor insurance market In € millions (2007)Total premium income% non-life premium incomeMotor premium income% motor premium income innon-lifeBelgium31,44030.18%3,08932.55%France194,31030.01%17,66030.29%Poland11,58041.77%2,89159.77%Source: CEA
3The Belgian motor insurance market Top 10(Economic groups in 2007)AXA/Winterthur 27.26%Ethias %AG Insurance Belgium 13.69%KBC 11.47%P&V Assurances 7.99%Dexia Insurance Belgium 5.66%Mercator 5.62%Allianz 4.06%Generali Belgium 2.13%Fédérale Assurance 1.56%Market share of the top %
4The Belgian motor insurance market Number of insurance companies offering motor insurance in 2007Belgium 65France 119Poland 29Source: CEA
5The Belgian motor insurance market Vehicle fleet as at 31 December 2008Cars 5,086,750Vans 561,300Motorbikes 384,310Agricultural tractors 170,500Lorries 104,810Road tractors 48,680Special vehicles 47,260Civil engineering equipment 39,200Agricultural equipment and cultivators 18,670Buses and coaches 15,890Total ,477,400
6The Belgian motor insurance market (2007) Vehicle fleetBelgium 6,300,000France 38,640,000Poland 16,701,000Source: CEA
7The Belgian motor insurance market RDR (direct settlement compensation fund) figuresNumber of claims 254, ,500Loss burden €382,223,000 €411,800,000Average claim cost €1,502 €1,575
9Basic principles of RDR The victim’s insurer (‘direct’ insurer) may compensate its policyholder in place of and on behalf of the insurer of the party responsible (‘adverse’ insurer), within the limits of liability specified in the list of cases. RDR settlement is permitted even in the event of injury, provided there is no disability or death.
10Basic principles of RDR Three agreements forming a single, indivisible whole:The loss assessment agreementThe RDR agreementThe recovery agreement
11Loss assessmentThe direct insurer mandates its own loss assessor to assess the damage to its client’s vehicle.In all cases, the insurer of the party presumed responsible may have the loss assessment monitored by its own loss assessor.Each company pays its own loss assessment costs.
12Loss assessment Quantify the compensable damage Photograph the damage and provide a detailed description of itProvide technical arguments in response to any queries from the mandator.
13Loss assessmentThe adverse loss assessor will act no later than seven days after being first contacted by their colleague.Failing this, the direct loss assessor may establish a figure alone, although this must not exceed €25,000.The adverse loss assessor must respond within seven days to the proposal made by the direct loss assessor.Failing this, the direct loss assessor may establish a figure alone, although this must not exceed €25,000.
14RDR management Conditions of application Accident in Belgium where the civil liability of a third party is partially or fully establishedContact between automotive vehiclesRegistered (B) or otherwiseNormally based in BelgiumSubject to an insurance requirementIdentified and covered for civil liability by member companies
15RDR management Different scenarios (cases) on the list Vehicles driving in the same directionVehicles driving in opposite directionsRequirement to give wayStationary or parkedManoeuvres and special cases
16Scenario based on Article 12.4 of the Belgian Highway Code Vehicles driving in the same directionCase 13Scenario based on Article 12.4 of the Belgian Highway CodeYXVehicles X and Y are driving in the same direction in different lanes.Vehicle Y changes lane OR vehicle Y changes direction, thereby cutting across vehicle X.
17Scenario based on Article 15 of the Belgian Highway Code Vehicles driving in opposite directionsCase 20Scenario based on Article 15 of the Belgian Highway CodeXYThe two vehicles must be driving in opposite directions on the same carriageway.It must be possible to determine the position of the vehicles in relation to the centre of the carriageway.Only vehicle Y encroaches onto the part of the carriageway intended for vehicles driving in the opposite direction.
18ManoeuvresCase 50PARKINGYXY pulls out of its parking space.
19The recovery settlement agreement The damage amount paid is settled via a compensation fund (Datassur)Up to €8,500: on the basis of the system of average cost priceBetween €8,500 and €25,000: recovery of real cost.