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Bodily injuries claims Bodily injuries claims development development

The French experienceThe French experience

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SummarySummary

Bodily injuries claims – The French experience

1. Bodily injuries accident records

2. Current situation

3. French insurers' plans

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Source : Annual survey on motor insurance (FFSA)

Frequency of bodily injuries in MTPL insurance

1. Bodily injuries accident records 1. Bodily injuries accident records

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Trends of bodily injuries compensation Trends of bodily injuries compensation

100

108114

116120

127

135

146

152

160165

90

100

110

120

130

140

150

160

170

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Source : Fichier des indemnités allouées aux victimes d’accidents de la circulation (Agira)Source : Fichier des indemnités allouées aux victimes d’accidents de la circulation (Agira)

Salaries indexSalaries index

Total compensation Total compensation averageaverage

Base 100 in 1995

1. Bodily injuries accident records 1. Bodily injuries accident records

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Share of MTPL insurance costs in 2005Share of MTPL insurance costs in 2005

Source : AcamSource : Acam

Bodily injuries from MTPL insurance represent 3 % of motor claims, but 29 % of motor total costs (4 billion €)(4 billion €)

1. Bodily injuries accident records 1. Bodily injuries accident records

Window breakage Others

Bodily injuries from MTPL insurance

Property damages from MTPL insurance

Property damages to vehicles

Theft-Fire

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What is the situation of bodily injury compensation in France ?

Principle : restitutio in integrum – full compensation

2 systems coexisting

• USA, UK : compensation for full awarded damages

• Quebec, Sweden : satisfaction of victim’s needs

The French system is hybrid

• Pecuniary compensation

• Possibility to re open the file in case of aggravation of the medical condition

2. 2. Current situationCurrent situation

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What is the situation of bodily injury compensation in France ?

Each year, insurers provide about 6 billion € to bodily injury claims

4.5 of the 6 billion are provided to traffic road accident bodily injury claims

50 % of this amount is provided to severe bodily injury victims

2. 2. Current situationCurrent situation

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What do we observe ?

A lack of transparency in bodily injuries compensation

• In medical evaluation Disparate medical missions

Different medical scales

• In the range of compensable injuries No statutory list of compensable injuries

• Compensation mechanisms Complexity of social organisms recourse

2. 2. Current situationCurrent situation

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What do we observe ?

An unequal treatment of victims according to the jurisdiction which might be referred to

• Reasons Nature of the accident : domestic/medical/road/offence

Jurisdictional competence : public/private ; North/South/Paris

• Consequences No mathematic methods to calculate pecuniary damages

No logic in personal damages compensation

Universal legal insecurity

2. 2. Current situationCurrent situation

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What do we observe ?

The failure of current bodily injuries compensation to meet severe injured victims’ needs

• Social and professional rehabilitation

• Optimization of remaining capacity

• A support program in a long period time

2. 2. Current situationCurrent situation

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First remark : bodily injuries compensation is a social issue

A proposal to reform the current bodily injuries compensation system in order to get more :

• Transparency

• Equity

• Adequate answers to severe bodily injury victims' needs

33. French insurers’ plans. French insurers’ plans

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Thanks for your attentionThanks for your attention