To travel on the road with a car it is mandatory to take out an RCA contract which may include certain contractual clauses. Let’s see all the compensation methods
The contractual relationship between an insurance company and the insured is based on various requirements: among these, compensation is fundamental. The insurance indemnity is in fact the financial sum that the insured receives as compensation for damage suffered and observed. Furthermore, the simplified direct compensation procedure came into force in 2007, but attention must be paid to the clause relating to the insurance overdraft, that is to say the agreement which allows the company to limit compensation in the event of an accident. Let’s see in detail what it is
- Direct remuneration
The simplified procedure for requesting payment from your insurer
- Insurance overdraft
Indicates a value expressed as a percentage of the total uncompensated damage.
What is insurance compensation?
The insurance indemnity is based on the conditions set out in the insurance contract and corresponds to the amount that the company is required to pay to the insured in the event of an accident. This may concern a motor vehicle but also real estate. It is essentially a quantified monetary compensation paid by an insurance company to its insured when one of the damages covered by the contract occurs during an accident. The contract stipulated with the insurance provides for the maximum amount, the deadlines and the terms of payment of the compensation.
Direct remuneration
Since 2007, with the rules contained in the Bersani Decree (Presidential Decree 254/2006), a simplified form of compensation has been introduced: direct compensation. This is the procedure that allows you to request the settlement of the claim from your own insurance company, thus avoiding having to contact that of the counterparty concerned.
In order to be able to access direct compensation, the insurance companies of the vehicles concerned must have adhered to the CARD (CARD Convention between Insurers for Direct Compensation); otherwise, compensation must be requested according to the ordinary procedure, that is to say from the company of the person who caused the accident.
Direct compensation can only be requested under certain conditions:
- the accident must not involve more than two motor vehicles registered in Italy, identified and regularly insured.
- Damage to the vehicle, to transported property belonging to the insured or to the driver, as well as minor bodily injuries suffered by the non-responsible driver may be compensated by direct compensation.
- The accident must occur in Italy, the Republic of San Marino or Vatican City.
Direct compensation cannot therefore be applied when the accident involves more than two vehicles, and if the cars are registered abroad or if they are not insured. It cannot be applied when it comes to agricultural machinery, for example tractors, boats or motorcycles with an old 5-digit registration plate. In the absence of a collision between vehicles, for example if only one of the vehicles is damaged, there can be no direct compensation.
Direct compensation only concerns minor damage to people, therefore with a permanent biological incapacity equal to or less than 9%. In the event of more serious damage, ordinary compensation must be paid.
Insurance overdraft
Insurance companies can offer various contractual options to the insured, including the so-called overdraft which allows the company to limit compensation in the event of an accident. Indicates a value expressed as a percentage of the total damage not compensated by the insurance company, and this part of the value of the damage remains the responsibility of the insured.
The deductible is expressed as a percentage of the amount of damage and cannot be calculated in advance, but only after the accident occurs. Usually, insurance companies include in the contract a minimum and maximum amount of overdraft that they are willing to cover.
With the overdraft, the Company wishes to encourage policyholders to behave more prudently, by charging them a percentage of the damage, whatever its extent.
The overdraft should not be confused with the deductible.
The excess is the part of the financial compensation which remains the responsibility of the insured person causing the damage, it is fixed in the insurance contract and remains fixed for the entire duration of the contract.