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Summary

Direct settlement mechanisms and Independent claims adjusters The French experience. Summary. Direct settlement mechanisms and Independent claims adjusters Direct settlement genesis The IDA agreement

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Summary

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  1. Direct settlement mechanisms and Independent claims adjusters The French experience

  2. Summary Direct settlement mechanisms and Independent claims adjusters • Direct settlement genesis • The IDA agreement • Independent claims adjusters’ status

  3. 1958 : compulsory motor third party liability insurance Length of the property damages compensation Accident circumstances set by police forces : difficulties to obtain the legal report No adjusters to evaluate the damages Heavy costs for claims handling Consequence Insured and insurers unsatisfied 1. Direct settlement genesis

  4. Different steps for direct settlement agreements First steps : the basis 1953 : Scale on liability rules 1956 : Advanced inclusive settlement for accidents between 2 vehicles 1960 : First standard form report Evaluation agreement by the direct insurer (the victim’s own MTPL insurer) 1968 : Direct settlement agreement IDA : ‘Indemnisation Directe de l’Assuré” Extended to all motor insurers 1. Direct settlement genesis

  5. General principles Scope : accident between 2 vehicles Compensation of property damages by the victim’s own MTPL insurer Scale of liability rules according to the information given by the standard form report Penalties for the direct insurer who let the insured introduce a legal procedure against the liable MTPL insurer 2. The IDA agreement

  6. A specific example The vehicle “A” does not stop on the red light and crashes into the vehicle “B” 2. The IDA agreement B The driver of vehicle « A » is liable A

  7. 2. The IDA agreement B A Out ofthe agreement IDA B’s insurer compensates B A’s insurer compensates B, after some legal exchanges with B’s insurer B’s insurer makes a recourse against A’s insurer according to the scale of liability rules

  8. Extension of the scope of the agreement 1974 : for any kind of accident, no matter the number of vehicles involved 1977 : possibility to make telematic recourse exchanges 1992 : a compensation “chamber” 1993 : compulsory telematic recourse exchanges in case of accident with property damages under 6 500 € Fixed sum of recourse : 1 204 € (annual average of repair costs) 2003 : IRSA 2. The IDA agreement

  9. The net effects No disputes 1 600 000 recourses in IDA per year 150 cases submitted for arbitration Standard form report formalized No more police reports The legal forces only intervene in case of bodily injury accidents Improvement in the client service Turn over : 12 % Actualization of the agreement by a technical Commission 2. The IDA agreement

  10. The adjuster’s tasks Verifies if the damages is caused by the accident Evaluates with the repairman the extent and costs of the repairs Detects any frauds Certifies the vehicle is road worthy 2. Independent claims adjusters' status

  11. The professional governance Diploma certified since 1973 Compulsory exams National registry held by the Ministry of Transportation About 2 000 certified members registered on the list Disciplinary Commission Suspension or decertification of members 2. Independent claims adjusters' status

  12. The relationship with insurers Each insurance company has it own motor experts network Contributes to make faster the settlement of claims When combined with the direct settlement agreement mechanisms But the adjusters are independent 2. Independent claims adjusters' status

  13. Thanks for your attention

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