Direct claims settlement in France
François Werner, Managing Director
AIDA symposium, Budapest, 26th 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

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
7
Direct claims settlement in France
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
8
Direct claims settlement in France
II. Application mechanisms
A. Financial aspect
B. Legal aspect
9
Direct claims settlement in France
A. Financial aspect

Lump sum enabling recourse between insurers

Offsetting every month between insurers
10
Direct claims settlement in France
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
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