Title II: The guarantee fund

I. – The French Compulsory Accident Insurance Guarantee Fund (Fonds de Garantie des Assurances Obligatoires de Dégât) compensates, under the conditions set out in 1 and 2 of this I, the victims or those entitled on behalf of the victims of losses resulting from an accident occurring in France in which a vehicle within the meaning of Article L. 211-1 is involved. 1. The guarantee fund shall compensate losses resulting…

The guarantee fund is a legal entity under private law. It groups together the insurance companies that cover the risks covered by compulsory motor and hunting insurance and the damage insurance provided for in article L. 242-1. The general manager of the guarantee fund is heard by the finance committees of the National Assembly and the Senate before his appointment.

The guarantee fund is subrogated to the rights of the compensation creditor against the person responsible for the accident or his insurer. It is also entitled to interest calculated at the legal rate in civil matters and to recovery costs. When the guarantee fund settles with the victim, this settlement is enforceable against the person responsible for the damage, except for the latter’s right to contest before the judge the…

The guarantee fund is financed by contributions from insurance companies, insured motorists and uninsured motorists responsible for motor vehicle accidents.

The contributions to the guarantee fund referred to in article L. 421-4 are defined as follows: 1° The contribution from policyholders is based on all net premiums or contributions that they pay to insurance companies for insurance against civil liability risks resulting from accidents caused by motor land vehicles and vehicle trailers or semi-trailers when the risk is located within the territory of the French Republic. It is collected by…

The rate of the contributions referred to in Article L. 421-4-1 is set by order of the Minister responsible for insurance within the following limits: 1° For the contribution from policyholders, this rate is between 0% and 2% of the premiums mentioned in 1° of the same article; 2° For the contribution made by insurance companies in respect of the “motor vehicle” section, this rate shall be between 0% and…

The guarantee fund may intervene, even before the criminal courts and even for the first time on appeal, with a view in particular to contesting the principle or the amount of the compensation claimed, in all proceedings between accident victims or their dependants, on the one hand, and those responsible or their insurers, on the other. In such cases, it acts as the principal claimant and may avail itself of…

A decree of the Conseil d’Etat shall lay down the conditions for the application of articles L. 421-1 to L. 421-5 and in particular the legal bases and procedures for determining the compensation which may be payable by the guarantee fund, the persons excluded from the benefits of the fund, the respective or reciprocal obligations and rights of the guarantee fund, the insurer, the person responsible for the accident, the…

A contribution to finance the mission provided for in IV of article L. 421-1 is introduced, payable by policyholders and allocated to the guarantee fund. This contribution is based on all net premiums or contributions paid by policyholders to insurance companies for civil liability risks resulting from accidents caused by land motor vehicles and vehicle trailers or semi-trailers when the risk is located throughout mainland France, the overseas departments, the…

When the perpetrator of an accident is unable to prove that he has complied with the obligation to insure instituted by article L. 211-1, the victim and the guarantee fund are entitled to avail themselves of the precautionary measures provided for in articles 48 to 57 of the Code of Civil Procedure (1). However, these provisions do not apply when the civil liability insurance concerns vehicles normally based in the…