Direct Settlement Agreement
Facilitation and improved service in the event of a motor vehicle accident.
The direct settlement agreement was established primarily to facilitate and improve service in the event of a motor vehicle accident, as it offers several advantages:
- Fewer and faster procedures for you.
- Faster payment of the compensation you are entitled to.
- Reduced need for legal action in court — by you or your insurance company — resulting in lower associated costs.
- Fewer disputes between you and other insurance companies.
- The ability to receive compensation from the company you have personally chosen, presumably based on your own assesment of the quality of its services.
The direct settlement agreement was first applied on May 1, 2000, when the insurance companies operating in Motor Vehicle Insurance in Greece, through a “Gentlemen’s Agreement”, established this compensation system, thereby relieving you from the need to seek recourse against the insurer of the at-fault driver.
The agreement establishes a Direct Payment System (DPS) in the event of a traffic accident, provided that both involved insurance companies have adhered to it. It is a gentlemen’s agreement open to all insurance companies offering motor vehicle insurance services.
The implementation of the Direct Payment System began in 2000, initially covering compensation for accidents involving only material damage, and since September 1, 2005, it has been expanded to include accidents causing minor bodily injuries.
With the Agreement, you have the option to be served directly by your own insurance company, without any changes to the existing mandatory motor third party liability insurance legislation. At the same time, the insurance companies participating in the System have the opportunity to demonstrate their commitment, being ready to support and assist you whenever required.
When the Direct Payment System (DPS) was first implemented in May 2000, accident settlement by the insurer covering the non-liable driver was only possible if the European Accident Statement form had been completed and signed by both drivers.
Today, the completion of the European Accident Statement form is no longer a requirement for including a damage claim in the DPS. However, its presence facilitates and accelerates the settlement and compensation procedures.
By compensating their clients for an accident for which they are not at fault, insurance companies act on behalf of the insurer covering the liability of the at-fault driver.
The financial transaction between the two involved insurance companies is settled through a clearance process that operates within the Hellenic Association of Insurance Companies. Payment reconciliations take place on a monthly basis, and recoveries are calculated using average values.
An integral part of the Agreement is the Liability Tables. These are agreed-upon cases of accidents, which, when they occur, conclusive determine, with absolute certainty, who among the two drivers involved is responsible for the accident in its entirety or at least 50%.
The body responsible for monitoring the daily implementation of the Agreement is the Administrative Committee, a 10-member committee that always meets in the presence of a legal advisor. Payment reconciliations, calculation of averages, and statistical monitoring of the Agreement are carried out by the Clearing Office, while the supreme body of the Agreement is the General Assembly of the contracting companies.
Under the responsibility of the Administrative Committee, the Members Registry is updated every year. The members of the Agreement cover the vast majority of the insured vehicle fleet of the member companies of the Hellenic Association of Insurance Companies (HAIC).