Presented by: Holger Backu, CEO AIIF 2015 –Baku, Azerbaijan Differences in MTPL claims in Europe and consequences for claims management of MTPL insurers Presented by: Holger Backu, CEO

Agenda I. Introduction II. Legal Framework for MTPL Claims in Europe III. National MTPL Claims and Cross Border Claims IV. Trends in Claims Management in Europe V. Conclusions 27.04.2019 AIIF-2015 - Azerbaijan International Insurance Forum

InterEurope: Trusted Leader in Claims & Consultancy Centralized structure to ensure optimal steering of an international network Own presence in 11 countries and cooperation partner in the remaining countries of the Green Card System 27.04.2019 AIIF-2015 - Azerbaijan International Insurance Forum

Institute of European Traffic Law: an European claims think thank 27.04.2019 AIIF-2015 - Azerbaijan International Insurance Forum

Agenda I. Introduction II. Legal Framework for MTPL Claims in Europe III. National MTPL Claims and Cross Border Claims IV. Trends in Claims Management in Europe V. Conclusions 27.04.2019 AIIF-2015 - Azerbaijan International Insurance Forum

One system, different realities 27.04.2019 AIIF-2015 - Azerbaijan International Insurance Forum

Precedence of European and international law over national law Treaties; charter of Fundamental Rights, general legal principles international agreements entered into by the EU Regulations, Directives, Decisions National Law 27.04.2019 AIIF-2015 - Azerbaijan International Insurance Forum

MTPL- and Indemnity Law Harmonization through MTPL Directives Directive 2009/103/EC of the European Parliament and of the Council of 16 September 2009 („6th MID“) Minimum insurance amounts (art. 9) Personal: 1 mio EUR per victim, 5 mio per claim Property: 1.000.000 per claim Direct right of action (art. 18) Compensation procedure for international claims (art. 20 ff., ex 4th MID) Reasoned offer, reasoned reply within 3 months, sanctions (ex 4th and 5th MID) National Indemnity Law National diversity regarding determination of liability and quantification auf damage 27.04.2019 AIIF-2015 - Azerbaijan International Insurance Forum

Legal framework in indemnity law: Proof of causality and liability systems Germany Italy France Spain UK Poland Romania Czech Republic Strict liability § 7 Road Traffic Act Art. 2054 Civil Code Art. 4 Badinter Law Art. 1.1 LRCSVM (-) Art. 436 Civil Code Art. 1376 Civil Code (-) not for driver Fault-based liability § 823 Civil Code Art. 2043 Civil Code Art. 1382 Civil Code Art. 1.2, 1.3 LRCSVM, Art. 1902 Civil Code Each case decided on individual merit Art. 415 Civil Code Art. 1357 Civil Code § 420 Civil Code 27.04.2019 AIIF-2015 - Azerbaijan International Insurance Forum

Calculation of amount of compensation for non material damage Germany Italy France Spain UK Poland Romania Czech Republic By Discretion of the courts X Guideline: „Hacks/Wellner/Häcker Table“ Guideline: „Judicial Studies Board“ x By Law with Table System „Baremo“ By mixed system National table for minor bodily injuries and judicial tables for serious personal injuries Dintilhac Terminology Discretion of the courts: Discriptive medical assessments Evaluation of a whole range of single aspects such as duration of disability, intensity of pain etc. compensatory function, release function Case law decisive also for out of court settlement, no role of doctors in establishing amount of the indemnity Problems: regional differencies, role of the courts in creating harminized case law Table systems: basis for determination of the indemnity amount shifts from legal to medical specialist AIIF-2015 - Azerbaijan International Insurance Forum 27.04.2019

Different heads of material damage for bodily injury Germany Italy France Spain UK Loss of income/service x Medical treatment costs Costs for household assistance Increased requirements Loss of alimentation Funeral costs Social insurance recourse but restricted Although the various heads of medical 27.04.2019 AIIF-2015 - Azerbaijan International Insurance Forum

Timeframes for claims handling Germany Italy France Spain UK International MTPL-claims 3 months to send a reasoned offer or reasoned reply 3 months to send a motivated offer or a reasoned reply 8 months from the date of accident or 3 months from the presentation of the claim to send a reasoned offer; final offer within 5 months from knowledge about stabilisation of injuries 3 months to send a motivated offer Pre-action protocol: 21 days to respond to letter of claim; 3 months investigation period to make a commitment in respect of liability National MTPL-claims No official time frames but 4 – 6 weeks according to jurisprudence 90 days for personal injuries Same as before Ministry of Justice Portal: 15 days investigation period (for BI claims up to 25.000 GBP) Speed required to give a motivated negative reply or to handle claims 27.04.2019 AIIF-2015 - Azerbaijan International Insurance Forum

IVASS Sanctions (Ivass Regulation n. 24/2008) Days in delay for bodily injuries Min Max Delay up to 30 days € 300 € 900 Delay up to 60 days € 2.700 Delay up to 90 days € 5.400 Delay up to 120 days € 10.800 Delay over 120 days € 20.000 € 60.000 27.04.2019 AIIF-2015 - Azerbaijan International Insurance Forum

Agenda I. Introduction II. Legal Framework for MTPL Claims in Europe III. National MTPL Claims and Cross Border Claims IV. Trends in Claims Management in Europe V. Conclusions 27.04.2019 AIIF-2015 - Azerbaijan International Insurance Forum

Different claims settlement systems in Europe Without direct compensation systems Voluntary direct settlement Mandatory direct compensation systems 27.04.2019 AIIF-2015 - Azerbaijan International Insurance Forum

MTPL Claims – Traditional System TPL Insurer Direct Right of Action Insurance Contract Injured Person Indemnity - Civil Code Responsible Person 27.04.2019 AIIF-2015 - Azerbaijan International Insurance Forum

MTPL Claims - Direct compensation Legal Rules + Conventions between Insurers TPL Insurer / Claimant - Injured TPL Insurer / Responsible Person Cover, Liability, Lump Sum acc. to law and convention Indemnity & liability acc. to law Insurance Contract Insurance Contract Injured Person Responsible Person 27.04.2019 AIIF-2015 - Azerbaijan International Insurance Forum

Positive and negative aspects Claimant: Liability and Quantification of Damage according to Indemnity Law (= civil law + MTPL insurance law) Claims settlement through his own MTPL insurer Experts, Lawyers, Legal Protection Insurers, other organisations on his side? Court proceedings? MTPL Insurer Claimant => Own Insured => long term relationship => Customer relationship management Service and active claims management towards own insured Containment of Indemnity and Processing costs vs. Quality? Containment of fraud and speculation Responsible Person / Insured Stability of Insurance Premium Information + Assistance 27.04.2019 AIIF-2015 - Azerbaijan International Insurance Forum

Green Card vs. 4th Motor Insurance Directive Claims Green Card Claims 4th MID Claims 27.04.2019 AIIF-2015 - Azerbaijan International Insurance Forum

Applicable law: Rome II Regulation (864/2007) General rule (Article 4) Principle: application of the law of the country in which the damage occurs irrespective of the country in which the event giving rise to the damage occurred …” Exception: application of the law of the habitual residence of the persons involved in the accident if 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” Exception for 1 and 2: if the tort is…manifestly more closely connected to a third country 27.04.2019 AIIF-2015 - Azerbaijan International Insurance Forum

Applicable law: Hague Convention (1971) Rules Hague Convention prevails over Rome II in the signatory States of the Convention(*) - (art 28 (2) Rome II art. 4) Principle: application of the law of the country in which the accident occurred Exception: application of the internal law of the State of registration in specific cases Example: where only one vehicle is involved in the accident and it is registered in a State other than that where the accident occurred towards a victim who is a passenger and whose habitual residence is in a State other than that where the accident occurred … (*) signatory States: Austria, Belgium, Bosnia-Hercegovina, Croatia, Czech Republic, France, Latvia, Lithuania Luxembourg, Montenegro, Morocco, Netherlands, Poland, Serbia, Slovakia, Slovenia, Spain, Switzerland, Macedonia and Ukraine 27.04.2019 AIIF-2015 - Azerbaijan International Insurance Forum

Agenda I. Introduction II. Legal Framework for MTPL Claims in Europe III. National MTPL Claims and Cross Border Claims IV. Trends in Claims Management in Europe V. Conclusions 27.04.2019 AIIF-2015 - Azerbaijan International Insurance Forum

Challanges in claims management: claims as „the moment of truth“ Interdisciplinary management Network management Active Claims Management Integration of claims service and Assistance Services Digitalisation Fraud detection and prevention Data Protection Solvency II Service to the Client: the positive claims experience 27.04.2019 AIIF-2015 - Azerbaijan International Insurance Forum

InterEurope’s legal management expertise Experts Networks Processes Legal know-how of processes of experts of networks Focus on interdisciplinary legal management Key factor in claims handling Allows for fast and advantageous out of court settlements Legal know-how through short handling periods automated processes Efficiency gains through superior legal competence through professional fraud detection Average indemnities below market average 27.04.2019 AIIF-2015 - Azerbaijan International Insurance Forum

An example of proactive claims management in Germany Technological progress requires advanced technical, legal and management know-how InterEurope: Separates claims into automated standard procedures and complex know-how driven claims Manages the claimant Manages expert networks applies legal know-how to clarify (product) liability and protect the interests of its client Increasing complexity of cars splits the claims market into automated standard processes and complex claims, with the potential of significant savings. 27.04.2019 AIIF-2015 - Azerbaijan International Insurance Forum

IT driven processes require State-the-of-Art technology in-house claims management software IT interfaces with client systems Integrated document management system mandatory constitution and revision of reserves Payment Autorisation levels Checks of payments against financial sanctions lists automatic statistical tool for various queries diary management all access is protocoled multilingual multicurrency 27.04.2019 AIIF-2015 - Azerbaijan International Insurance Forum 26

Agenda I. Introduction II. Legal Framework for MTPL Claims in Europe III. National MTPL Claims and Cross Border Claims IV. Trends in Claims Management in Europe V. Conclusions 27.04.2019 AIIF-2015 - Azerbaijan International Insurance Forum

Interdisciplinary management Insurance Company International qualification Expertise in International Private Law Proactive claims management Repairshop networks Automation of processes Networks of external experts Claim steering, controlling Monitoring of the external service providers Repair-shops Rental Companies Experts Insurers Medical experts Hospitals 27.04.2019 AIIF-2015 - Azerbaijan International Insurance Forum

Interdisciplinary management – internationality in claims Integration of advanced professional know-how and constant improvement and change Legal Process Management Technology Medicine Anti-fraud … 27.04.2019 AIIF-2015 - Azerbaijan International Insurance Forum

Interdisciplinary management – internationality in claims 27.04.2019 AIIF-2015 - Azerbaijan International Insurance Forum

Interdisciplinary management – internationality in claims 27.04.2019 AIIF-2015 - Azerbaijan International Insurance Forum

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