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Motor Third Party Liability Insurance
Francis Frizon
French Insurance Mediator
Yerevan - 27/29 October
Introduction
Principle: The General Law is based on fault.
The person responsible for an accident - or his insurer - must, except in cases of negligence, indemnify the victim.
1985
Law n°85-677 of 5 July 1985 called “Badinter Law’’ on road traffic accidents
3 characteristics:
Specific rules in relation to the General Law
Strict procedure for the compensation to the victims
Regulation of the Automotive Guarantee Fund
Two agreements between Insurers for road traffic accidents
Material accidents: Direct compensation agreement for the insured and claim between automotive insurance companies, known as “IRSA Convention“
Corporal accidents: Compensation and corporal claim automotive Agreement, known as IRCA Convention
Regulation of material accidents
IRSA Convention
Objectives
Accelerate the settlement of cases
Simplify claims between insurers
Limit the judicial litigation
Principles
Companies compensate their policyholders directly, and if the sinisiter exceeds the amount (€ 6.500), it turns against the liable party.
If the damage is ≥ 325 euros: Expertise is required.
In the event of claims between insurers:
The cost is determined by the lump sum according to the part of responsibilities assigned by
the "accident report"
- and the scale of interpretation
Indemnisation of corporal damages
Convention IRCA
Principles:
- Direct compensation of the victim by its insurer
- Claims between insurers based on conventional rules
- Single point of contact for the victims
These rules apply for litigation cases when the damage does not exceed 5% of disability (80% of litigation cases)
The offer of compensation required by law
Who ? : The civil liability insurer of the victim or the person in charge where appropriate
How ? : The offer must detail all items of damage/ head of loss or damage
When? : Within 8 months after the accident
Penalty: Increase of compensation twice the rate of legal interest
The Guarantee Fund
When does it intervene ?
The person responsible for the accident is unknown
The responsible person is known but not insured
The responsible person is apparently insured but an exception can be invoked by the insurer (nullity of the
contract, suspension, ...)
Litigations submitted to the Mediator
Litigations related to compensation for personal injury are now extremely rare.
Litigations relating to the responsibility assigned by an insurer to its insured are submitted to the Mediator.
It is not within its competence, to mediate between two persons involved in an accident.
The Mediator intervenes only to say whether he considers the assessment that the insurance company may have made the responsibility of the insured, given the available information, founded or not .
Thank you for your kind
attention !
Francis FRIZON
French Insurance Mediator
