1. 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 François Werner, Managing Director AIDA symposium, Budapest, 26th November 2010

2. Direct claims settlement in France 2 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

3. Direct claims settlement in France 3 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.

4. Direct claims settlement in France 4  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

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

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

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

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

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

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

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

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