jean-pierre daniel skopje nov.22. 2010
DESCRIPTION
Presentation to the Motor Insurance Bureau of the Republic of Macedonia. Direct Motor Claims’ settlement. Jean-Pierre Daniel Skopje Nov.22. 2010. What are the objectives ?. From a commercial perspective. To speed up the claims’ settlement. - PowerPoint PPT PresentationTRANSCRIPT
Presentation to the Motor Insurance Bureau of the Republic of Macedonia.
Direct Motor Claims’ settlement
Jean-Pierre DanielSkopje Nov.22. 2010.
www.insurance-surveys.com 2
What are the objectives ?
• From a commercial perspective.– To speed up the claims’ settlement.– To give a better service to the customer as
he/she will be treated by his/her own insurance company.
www.insurance-surveys.com 3
What are the objectives ?
• From a technical perspective.– To control the claims costs.
• Thanks to the virtuous influence of the lump sum.• In decreasing the administrative expenses due to
claims management.• In removing legal expenses originated by court
claims settlement.• In impeding the implementation of “no win, no fees”
offices.
www.insurance-surveys.com 4
Some facts.
• Material damages car accidents – Are so numerous that it is impossible to deal
with them in courts.– It is often impossible to know who is really
guilty.– Are not ( will not be ? ) such a big deal for
drivers.
www.insurance-surveys.com 5
Some figures.
• Number of MTPL accidents.– France : 1 704 000 37 million vehicles.
– Italy : 3 370 000 42 million vehicles.
– Germany : 3 801 000( including bodily injuries ) 55,5 million vehicles
www.insurance-surveys.com 6
Direct indemnification of the insured.
• Established in 1968.• Agreement between insurance companies.• So deeply implemented in the market that
it seems compulsory.
www.insurance-surveys.com 7
Direct indemnification of the insured.
• Company of the driver at fault.– Receives the amicable
statement.– Pays the lump sum to
the opposite company.
• Company of the driver not at fault.– Receives the amicable
statement.– Assesses the claim.– Pays the body shop.– Claims for a lump sum
the opposite company.
www.insurance-surveys.com 8
Direct indemnification of the insured.
• Applies to any motor claim.• Settles only material damages.• Applies in this simple way if the damages
do not exceed 6500 €.• The lump sum : 1204 € = average cost of
material damages claims below 6500 €.
www.insurance-surveys.com 9
Direct indemnification of the insured.
• If the damages exceed 6500 €,– The company of the driver not at fault has to
invite the opposite company to assess the damages.
– The company not at fault claims for the total amount of the damages.
www.insurance-surveys.com 10
Direct indemnification of the insured.
• Claiming for a lump sum is the key factor of success.– On one hand, as the company settles the
claim of its customers, it treats him well.– One the other hand, as the company which
settles the claim receives only a lump sum, it has no interest in exaggerating the cost of the repairs.
www.insurance-surveys.com 11
Why does the system work ?
• Each company receives a copy of the amicable statement.
• Thanks to a table part of the agreement, each company immediately knows which driver is at fault.
www.insurance-surveys.com 12
www.insurance-surveys.com 13
How does the system work ?
• 13 cases depending on the position of the cars.
• Assessment based on objective elements.– 100% at fault,– 50%/50%– Not at fault.
• 92% of the accidents = 0/100%• 8% = 50%/50%
www.insurance-surveys.com 14
Why does the system work ?
• In case of a disagreement between companies, – Each company has an “IDA correspondent”
who will speak with the “IDA correspondent” of the opposite company.
– Each year only 60 cases are settled by the arbitration court established by the agreement.
www.insurance-surveys.com 15
Administrative issues.
• A clearing house has been established on a non for profit basis.
• For the day 25 of each month, each company sums up all the claims it has paid for each of the other market participants.
• These amounts are compensated between insurance companies.
• In case of delay in the payment of the compensation a rate of interest of 5% per month applies.
www.insurance-surveys.com 16
In other countries.
• In Spain and Italy, exactly identical agreements.
• In UK and Germany, no market agreements but agreements between some companies.
www.insurance-surveys.com 17
Settlement of light bodily injuries.
• Since 2002 an similar agreement has been set up to “light” bodily injuries.
• No disability or disability < 5%.• A table has been agreed by insurance
companies to assess the compensation of injuries.
• Allows to settle 85% of bodily injuries claims.
www.insurance-surveys.com 18
Settlement of light bodily injuries.
• The company of the driver at fault.– Pays back the
company of the driver not at fault.
• The company of the driver not at fault.– Assesses the
damages of the victims.
– Indemnifies the victim.• If it pays into the frame
of a table, claims for the amount paid.
• If it pays over the table, bears the payment in excess.
www.insurance-surveys.com 19
Thank you for your attention
All questions are welcomed