eu motor insurance directives - The International Insurance Forum

Report
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
HAGUE CONVENTION ON THE LAW
APPLICABLE TO TRAFFIC ACCIDENTS OF
1971
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)
ROME II REGULATION OF EU ON THE LAW
APPLICABLE TO NON-CONTRACTUAL
OBLIGATIONS (2007)
- 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.
GREEN CARD SYSTEM
- 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.
UNIFIED PROCEDURES FOR AN EFFICIENT
CO-OPERATION IN ROAD ACCIDENTS
INTERNAL REGULATIONS OF THE
COUNCIL OF BUREAUX
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
(GREEN CARD SYSTEM)
General Provisions
Specific Provisions based on green card
Specicific Provisions on deemed insurance cover
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.
PROTECTION OF VISITORS’ AGREEMENT
- The Council of Bureaux has taken the initiative
to prepare the agreement.
- A limited scope compared to the 4th Directive.
-No
Compensation
requirements.
Body
or
additional
- 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.
BASIC 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.
OPTIONAL 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
insurer’s 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.
FINANCIAL DISCIPLINE FOR THE GREEN
CARD SALES –
THE DANGER OF A LOW PRICE
FINANCIAL DISCIPLINE
 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
GREEN CARD VALIDITY VERIFICATION
WHEN TRAVELLING ABROAD
GREEN CARD VERIFICATION
Border Checks
Police Checks
Procedure to confirm green card cover
Fake Green Cards

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