1. Direct claims settlement system for MTPL insurance in Belgium
Daniel Frala Warsaw
Datassur September 2009

2. The Belgian motor insurance market
In € millions (2007)
Total premium income
% non-life premium income
Motor premium income
% motor premium income in
non-life
Belgium
31,440
30.18%
3,089
32.55%
France
194,310
30.01%
17,660
30.29%
Poland
11,580
41.77%
2,891
59.77%
Source: CEA

3. The Belgian motor insurance market
Top 10
(Economic groups in 2007)
AXA/Winterthur 27.26%
Ethias %
AG Insurance Belgium 13.69%
KBC 11.47%
P&V Assurances 7.99%
Dexia Insurance Belgium 5.66%
Mercator 5.62%
Allianz 4.06%
Generali Belgium 2.13%
Fédérale Assurance 1.56%
Market share of the top %

4. The Belgian motor insurance market
Number of insurance companies offering motor insurance in 2007
Belgium 65
France 119
Poland 29
Source: CEA

5. The Belgian motor insurance market
Vehicle fleet as at 31 December 2008
Cars 5,086,750
Vans 561,300
Motorbikes 384,310
Agricultural tractors 170,500
Lorries 104,810
Road tractors 48,680
Special vehicles 47,260
Civil engineering equipment 39,200
Agricultural equipment and cultivators 18,670
Buses and coaches 15,890
Total ,477,400

6. The Belgian motor insurance market (2007)
Vehicle fleet
Belgium 6,300,000
France 38,640,000
Poland 16,701,000
Source: CEA

7. The Belgian motor insurance market
RDR (direct settlement compensation fund) figures
Number of claims 254, ,500
Loss burden €382,223,000 €411,800,000
Average claim cost €1,502 €1,575

9. Basic principles of RDR
The victim’s insurer (‘direct’ insurer) may compensate its policyholder in place of and on behalf of the insurer of the party responsible (‘adverse’ insurer), within the limits of liability specified in the list of cases. RDR settlement is permitted even in the event of injury, provided there is no disability or death.

10. Basic principles of RDR
Three agreements forming a single, indivisible whole:
The loss assessment agreement
The RDR agreement
The recovery agreement

11. Loss assessment
The direct insurer mandates its own loss assessor to assess the damage to its client’s vehicle.
In all cases, the insurer of the party presumed responsible may have the loss assessment monitored by its own loss assessor.
Each company pays its own loss assessment costs.

12. Loss assessment Quantify the compensable damage
Photograph the damage and provide a detailed description of it
Provide technical arguments in response to any queries from the mandator.

13. Loss assessment
The adverse loss assessor will act no later than seven days after being first contacted by their colleague.
Failing this, the direct loss assessor may establish a figure alone, although this must not exceed €25,000.
The adverse loss assessor must respond within seven days to the proposal made by the direct loss assessor.
Failing this, the direct loss assessor may establish a figure alone, although this must not exceed €25,000.

14. RDR management Conditions of application
Accident in Belgium where the civil liability of a third party is partially or fully established
Contact between automotive vehicles
Registered (B) or otherwise
Normally based in Belgium
Subject to an insurance requirement
Identified and covered for civil liability by member companies

15. RDR management Different scenarios (cases) on the list
Vehicles driving in the same direction
Vehicles driving in opposite directions
Requirement to give way
Stationary or parked
Manoeuvres and special cases

16. Scenario based on Article 12.4 of the Belgian Highway Code
Vehicles driving in the same direction
Case 13
Scenario based on Article 12.4 of the Belgian Highway Code Y X
Vehicles X and Y are driving in the same direction in different lanes.
Vehicle Y changes lane OR vehicle Y changes direction, thereby cutting across vehicle X.

17. Scenario based on Article 15 of the Belgian Highway Code
Vehicles driving in opposite directions
Case 20
Scenario based on Article 15 of the Belgian Highway Code X Y
The two vehicles must be driving in opposite directions on the same carriageway.
It must be possible to determine the position of the vehicles in relation to the centre of the carriageway.
Only vehicle Y encroaches onto the part of the carriageway intended for vehicles driving in the opposite direction.

18. Manoeuvres
Case 50
PARKING Y X
Y pulls out of its parking space.

19. The recovery settlement agreement
The damage amount paid is settled via a compensation fund (Datassur)
Up to €8,500: on the basis of the system of average cost price
Between €8,500 and €25,000: recovery of real cost.

20. Thank you for your attention