Presentation on theme: "CLAIMS SETTLING WITHIN AND OUTSIDE THE EUROPEAN UNION."— Presentation transcript:
CLAIMS SETTLING WITHIN AND OUTSIDE THE EUROPEAN UNION
EU MOTOR INSURANCE DIRECTIVES 5 Motor Insurance Directives: Objectives of First, Second and Third Directives: - Compulsory MTPL insurance - Abolishment of border insurance checks - Single policy covers the whole Community - Establishment of guarantee funds
EU MOTOR INSURANCE DIRECTIVES IV. Motor Insurance Directive: - Protection for visiting victims - Direct action right against the insurer - Insurance Information Centres
EU MOTOR INSURANCE DIRECTIVES V. Motor Insurance Directive: - Pedestrians and Cyclists - specific categories of accident victims - Minimum Liability Limits
EU MOTOR INSURANCE DIRECTIVES V. Motor Insurance Directive: Starting from June 2012 insurance limits in EEA countries are: Property damage: EUR. 1.000.000 per accident. Bodily injury: EUR. 1.000.000 per victim or EUR. 5.000.000 per accident.
EU MOTOR INSURANCE DIRECTIVES 5 Motor Insurance Directives: - Single EU Insurance Market ? - Freedom of Services - Freedom of Establishment
Primary Aim: to provide clear and easily applicable rules to determine what law applies to the traffic accident. Main Principle: lex loci delicti commissi - the law of the country of the accident. HAGUE CONVENTION ON THE LAW APPLICABLE TO TRAFFIC ACCIDENTS OF 1971
-Right of direct action against the insurer. - The rules of the Convention apply universally: they are independent of whether the law is that of a Signatory State or not. HAGUE CONVENTION ON THE LAW APPLICABLE TO TRAFFIC ACCIDENTS OF 1971
- Special Rules: Law of the country of vehicle registration Involvement of single vehicle (claims of passengers) Several vehicles (all registered in the same State) Involvement of people outside the vehicle (all people with habitual residence in the country of registration) HAGUE CONVENTION ON THE LAW APPLICABLE TO TRAFFIC ACCIDENTS OF 1971
- General Rule: - Applicability of the law of the country in which the damage occurred. ROME II REGULATION OF EU ON THE LAW APPLICABLE TO NON-CONTRACTUAL OBLIGATIONS (2007)
- General Rule: Where the person claimed to be liable and the person sustaining damage both have their habitual residence in the same country at the time when the damage occurs, the law of that country shall apply. ROME II REGULATION OF EU ON THE LAW APPLICABLE TO NON-CONTRACTUAL OBLIGATIONS (2007)
- General Rule : All claims shall be handled by the bureau with complete autonomy in conformity with legal and regulatory provisions applicable in the country of accident relating to liability, compensation of injured parties and compulsory insurance limits. GREEN CARD SYSTEM
UNIFIED PROCEDURES FOR AN EFFICIENT CO-OPERATION IN ROAD ACCIDENTS
A common agreement adopted by the national insurers bureaux governing the relations among them and the rules in cross-border claims handling. INTERNAL REGULATIONS OF THE COUNCIL OF BUREAUX
General Provisions Specific Provisions based on green card Specicific Provisions on deemed insurance cover INTERNAL REGULATIONS OF THE COUNCIL OF BUREAUX (GREEN CARD SYSTEM)
IV. EU MOTOR INSURANCE DIRECTIVE Came into force in 2003. The Directive created a comprehensive system for the prompt settlement of claims regarding victims visiting a foreign country. A compulsory system.
IV. EU MOTOR INSURANCE DIRECTIVE Establishment of: - Compensation Bodies, - Information Centres, - Appointment of claims representatives. Agreements of cooperation have been signed between Compensation Bodies, Guarantee Funds and Information Centres.
SOME DIFFICULTIES FOR NON-EEA COUNTRIES - There was no system for protection of visitors. - Communication problems with victims. - No response given by insurers to victims or delay in claims handling procedures. - Difficulties of reimbursement between insurers.
- The Council of Bureaux has taken the initiative to prepare the agreement. - A limited scope compared to the 4th Directive. -No Compensation Body or additional requirements. - Agreement is based on a voluntary basis. PROTECTION OF VISITORS AGREEMENT
- It consists of two parts: Basic and Optional Agreement. - The Agreement can be signed bilaterally only between two Bureaux. PROTECTION OF VISITORS AGREEMENT
Exchange of information between two Bureaux to assist a victim: - Identifying the relevant insurer based on plate number. - Obtaining police reports. - Informing victims about Gurantee Funds in case of uninsured or unidentified vehicles. BASIC AGREEMENT
- An opportunity for an insurer to appoint a claims representative in a foreign country to handle claims arising out of accidents which occur in the insurers country of establishment. - The insurer is free to choose which claims representatives it will appoint. OPTIONAL AGREEMENT
- Claims representatives have to strictly follow the instructions of the insurer. - The applicable law is the law of the country of accident. - Claims representatives act as an intermediary between the victim and the liable insurer. OPTIONAL AGREEMENT
- Claims representatives can not make any decision on liability,settlement and/or make any interpretations related to the compulsory MTPL insurance legislation in the country of the accident. - Only after they receive the money and approval to pay from the insurer, claims representatives will make compensation payments to victims. OPTIONAL AGREEMENT
FINANCIAL DISCIPLINE FOR THE GREEN CARD SALES – THE DANGER OF A LOW PRICE
Unlimited cover for bodily injuries in some countries+low price = huge risk Solvency Issues Bureaux standing as guarantors Bad image and monitoring in case of delays or non-payment FINANCIAL DISCIPLINE
GREEN CARD VALIDITY VERIFICATION WHEN TRAVELLING ABROAD
Border Checks Police Checks Procedure to confirm green card cover Fake Green Cards GREEN CARD VERIFICATION