Martin Metzler Dr. iur., Attorney President Swiss National Bureau of Insurance (NBI) Swiss National Guarantee Fund (NGF) 19 August 2004 Bucharest

'Own damage' insurance products  differs from market to market  insurance for all kind of damage which could occur to the vehicle (e.g. collision risk) and theft  advantage of having such an insurance cover ? (luxury ?)

Motor own damage recourse  based on LAW (International Private Law - IPL)  based on AGREEMENT

'Own damage' recourse based on law (IPL)  normally to be recovered from MTPL-insurer throughout Europe  problems with the extent of loss (added value insurance / replacement value)  handling by Bureaux ? - in CH rather exceptional, but possible - if requested - fees: bilaterally agreed, not officially fixed

International Sharing Agreement (ISA) between Motor Liability and Motor Own Damage Insurers

Basic principle  share on a fixed basis the cost of the indemnity between 'own damage' and MTPL-insurers  recourse until a fixed amount without considering the legal situation: Minimum amount € 400 Maximum amount € 6'000 Under € 400 ? Over € 6'000 ?

1.Recourses based on the ISA  only between insurance companies which are members  participating insurance companies appear on CEA's website in the Sharing Agreement / Member companies section

1.Recourses based on the ISA (continuation)  amount exceeding the maximum amount of € 6'000 is dealt with in accordance with the legal situation  recourse: 'Own damage' on 'liability' or vice versa, if 'own damage' insured  outlays are divided by number of involved vehicles and their insurance companies that join the agreement

2.Recourses based on the legal basis  recourse against insurance companies that do not join the ISA-agreement  1. recourse in accordance with the legal situation 2. recourse in accordance with ISA  speciality in the case of a total loss: 'own damage' insurance reimburses the added value to the current value when covered correspondingly, whereas the 'liability' insurance only the current value. Therefore consideration must be given within the recourse (cf. example 3)

Examples (for all of them same facts of the case) Collision of 3 vehicles: Vehicle 1: hindmost vehicle, not joining the ISA, fault 50% Vehicle 2: middle vehicle, joining the ISA, fault 50%, settlement out of 'own damage' insurance Vehicle 3:foremost vehicle, joining the ISA, fault 0%

Example 1 Outlays of € 4'000 (repair) for vehicle 2 and recourse on the 'liability' insurers of the other two vehicles involved: Legal action on Vehicle 150%€ 2'000 ISA on Vehicle 3half of the rest (€ 2'000)€ 1'000 Vehicle 1: hindmost vehicle, not joining the ISA, fault 50% Vehicle 2: middle vehicle, joining the ISA, fault 50%, settlement out of 'own damage' insurance Vehicle 3:foremost vehicle, joining the ISA, fault 0%

Example 2 Outlays of € 15'000 (repair) for vehicle 2 and recourse on the 'liability' insurers of the other two vehicles involved: Legal action on Vehicle 150%€ 7'500 ISA on Vehcile 3half of the rest (€ 6'000*)€ 3'000 * Maximum amount of € 6'000 Vehicle 1: hindmost vehicle, not joining the ISA, fault 50% Vehicle 2: middle vehicle, joining the ISA, fault 50%, settlement out of 'own damage' insurance Vehicle 3:foremost vehicle, joining the ISA, fault 0%

Example 3 Outlays of € 30'000 (total loss with the added value to the current value / current value of € 20'000) for vehicle 2 and recourse on the 'liability' insurers of the other two vehicles involved: Legal action on Vehicle 150% of current value€ 10'000 ISA on Vehicle 3half of ISA-maximum*€ 3'000 * Maximum amount of € 6'000 Vehicle 1: hindmost vehicle, not joining the ISA, fault 50% Vehicle 2: middle vehicle, joining the ISA, fault 50%, settlement out of 'own damage' insurance Vehicle 3:foremost vehicle, joining the ISA, fault 0%