Francis Frizon

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
le.mediateur@mediation-assurance.org