A new motor claims settlement system is about to be finalized. An agreement called direct compensation of policyholders (IDA) will be signed by different insurance companies before the end of 2017.
This new provision will accelerate the settlement of motor claims. Insurers will, henceforth, proceed to the compensation of their clients and will turn to the insurer of the liable party for recovering the paid out amounts.
For many years, the Algerian market has accumulated a high amount of recourse cases. The various local players thus signed two inter-company agreements in 2015 to address this problem: sanitation convention of appeals with the average cost "(Arcim) and the" inter-company agreement of settlement of motor material claims "(Irsam ).
The new IDA agreement could conclusively settle the claims payment delays and improve the image of insurance companies.
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