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CLA I MS SETTL I NG W I TH I N AND OUTS I DE THE EUROPEAN UN I ON

CLA I MS SETTL I NG W I TH I N AND OUTS I DE THE EUROPEAN UN I ON. EU MOTOR INSURANCE DIRECTIVES. 5 Motor Insurance Directives : Objectives of First , Second and Third Directives : Compulsory MTPL insurance Abolishment of border insurance checks

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CLA I MS SETTL I NG W I TH I N AND OUTS I DE THE EUROPEAN UN I ON

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  1. CLAIMS SETTLING WITHIN AND OUTSIDE THE EUROPEAN UNION

  2. EU MOTOR INSURANCE DIRECTIVES • 5 Motor InsuranceDirectives: • Objectives of First, SecondandThirdDirectives: • Compulsory MTPL insurance • Abolishment of borderinsurancechecks • - SinglepolicycoversthewholeCommunity • - Establishment of guaranteefunds

  3. EU MOTOR INSURANCE DIRECTIVES • IV. Motor InsuranceDirective: • Protectionforvisitingvictims • Directactionrightagainsttheinsurer • - InsuranceInformationCentres

  4. EU MOTOR INSURANCE DIRECTIVES • V. Motor InsuranceDirective: • PedestriansandCyclists - specificcategories of • accidentvictims • Minimum LiabilityLimits

  5. EU MOTOR INSURANCE DIRECTIVES • V. Motor InsuranceDirective: • StartingfromJune 2012 insurancelimits in EEA countriesare: • Propertydamage: • EUR. 1.000.000 peraccident. • Bodilyinjury: • EUR. 1.000.000 pervictimor • EUR. 5.000.000 peraccident.

  6. EU MOTOR INSURANCE DIRECTIVES • 5 Motor InsuranceDirectives: • Single EU Insurance Market ? • Freedom of Services • - Freedom of Establishment

  7. HAGUE CONVENTION ONTHE LAWAPPLICABLETOTRAFFIC ACCIDENTSOF 1971 PrimaryAim: to provide clearandeasily applicable rules todetermine what law applies to the traffic accident. MainPrinciple: lex loci delicti commissi - the law of the country of theaccident.

  8. HAGUE CONVENTION ONTHE LAWAPPLICABLETOTRAFFIC ACCIDENTSOF 1971 • Right of directaction against the insurer. • -The rules of the Convention apply universally: • they are independent of whether the law is • that of a SignatoryState or not.

  9. HAGUE CONVENTION ONTHE LAWAPPLICABLETOTRAFFIC ACCIDENTSOF 1971 • SpecialRules: Law of the country of vehicle registration • Involvement of singlevehicle (claims of passengers) • Several vehicles (all registered in the same State) • Involvement of people outside the vehicle (all people with habitual residencein the country of registration)

  10. ROME II REGULATION OF EU ON THE LAW APPLICABLE TO NON-CONTRACTUAL OBLIGATIONS (2007) • General Rule: • - Applicability of the law of thecountry in which the damage occurred.

  11. ROME II REGULATION OF EU ON THE LAW APPLICABLE TO NON-CONTRACTUAL OBLIGATIONS (2007) • General Rule: • Where the person claimed to be liable and theperson sustaining damage both have their habitual residence inthe same country at the time when the damage occurs, the lawof that country shall apply.

  12. 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 insurancelimits.

  13. UNIFIED PROCEDURES FOR AN EFFICIENT CO-OPERATION IN ROAD ACCIDENTS

  14. INTERNAL REGULATIONS OF THE COUNCIL OF BUREAUX • A commonagreementadoptedbythenationalinsurers’ bureauxgoverningtherelationsamongthemandtherules in cross-borderclaimshandling.

  15. INTERNAL REGULATIONS OF THE COUNCIL OF BUREAUX (GREEN CARD SYSTEM) • General Provisions • SpecificProvisionsbased on greencard • SpecicificProvisions on deemedinsurancecover

  16. IV. EU MOTOR INSURANCE DIRECTIVE Cameintoforce in 2003. TheDirectivecreated a comprehensivesystemforthepromptsettlement of claimsregardingvictimsvisiting a foreigncountry. A compulsorysystem.

  17. IV. EU MOTOR INSURANCE DIRECTIVE Establishment of: - CompensationBodies, - InformationCentres, - Appointment of claimsrepresentatives. Agreements of cooperationhavebeensignedbetweenCompensationBodies, GuaranteeFundsandInformationCentres.

  18. SOME DIFFICULTIES FOR NON-EEA COUNTRIES • Therewasno systemforprotection of visitors. • - Communicationproblemswithvictims. • No responsegivenbyinsurerstovictimsordelay in claimshandlingprocedures. • - Difficultiesof reimbursementbetweeninsurers.

  19. PROTECTION OF VISITORS’ AGREEMENT - TheCouncil of Bureaux has takentheinitiativetopreparetheagreement. - A limitedscopecomparedtothe4th Directive. -No CompensationBody oradditionalrequirements. - Agreement is based on a voluntarybasis.

  20. PROTECTION OF VISITORS’ AGREEMENT - Itconsists of twoparts: BasicandOptionalAgreement. - TheAgreement can be signedbilaterallyonlybetweentwoBureaux.

  21. BASIC AGREEMENT Exchange of informationbetweentwoBureauxtoassist a victim: - Identifyingtherelevantinsurerbased on platenumber. - Obtainingpolicereports. - InformingvictimsaboutGuranteeFunds in case of uninsuredorunidentifiedvehicles.

  22. OPTIONAL AGREEMENT - An opportunityfor an insurertoappoint a claimsrepresentative in a foreigncountrytohandleclaimsarisingout of accidentswhichoccur in theinsurer’scountry of establishment. - Theinsurer is freetochoosewhichclaimsrepresentativesit willappoint.

  23. OPTIONAL AGREEMENT - Claimsrepresentativeshavetostrictlyfollowtheinstructions of theinsurer. - Theapplicablelaw is thelaw of thecountry of accident. - Claimsrepresentativesact as an intermediarybetweenthevictimandtheliableinsurer.

  24. OPTIONAL AGREEMENT • Claimsrepresentatives can not makeanydecision on liability,settlementand/ormakeanyinterpretationsrelatedtothecompulsory MTPL insurancelegislation in thecountry of theaccident. • - Onlyaftertheyreceivethemoneyandapprovalto pay fromtheinsurer, claimsrepresentativeswillmakecompensationpaymentstovictims.

  25. FINANCIAL DISCIPLINE FOR THE GREEN CARD SALES – • THE DANGER OF A LOW PRICE

  26. FINANCIAL DISCIPLINE • Unlimitedcoverforbodilyinjuries in some • countries+lowprice = huge risk • SolvencyIssues • Bureauxstanding as guarantors • Badimageandmonitoring in case of delaysornon-payment

  27. GREEN CARD VALIDITY VERIFICATION WHEN TRAVELLING ABROAD

  28. GREEN CARD VERIFICATION • BorderChecks • PoliceChecks • Proceduretoconfirmgreencardcover • FakeGreenCards

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