What are our missions ?

Article 23-2 of the law of 16 April 2003 on compulsory insurance against third party motor vehicle liability, as amended (hereinafter the ‘Law’), sets out the various purposes of the FIAA.

One of the tasks of the FIAA is to compensate injured parties residing in the Grand Duchy of Luxembourg, within the limits of the obligation to insure against civil liability in respect of motor vehicles in accordance with the law applicable to the accident, for damage to property or personal injury caused by a vehicle insured by an insurance undertaking, from the moment when :

• the Commissariat aux Assurances (hereinafter the ‘CAA’) notifies the FIAA that an insurance undertaking governed by Luxembourg law is the subject of collective liquidation proceedings within the meaning of Article 229, point 3, of the amended law of 7 December 2015 on the insurance sector; or
• an equivalent body of another Member State notifies the FIAA that an insurance undertaking is subject to bankruptcy proceedings or winding-up proceedings within the meaning of Article 268(1)(d) of the Directive.

Secondly, the FIAA is responsible for reimbursing the full amount paid in compensation by any equivalent body in another Member State for damage to property or personal injury caused by a vehicle insured by an insurance undertaking that is a Member of the FIAA.

In addition, the FIAA may negotiate and conclude agreements in accordance with Articles 10a(13) and 25a(13) of the Directive concerning the functions and obligations of the bodies party to the agreements, as well as reimbursement procedures between these parties.

Finally, the FIAA is responsible for collecting the contributions due by the Members and managing the financial resources referred to in article 23-4 of the Law.

What is our governing body?

The governing body of the FIAA is the ‘comité de direction’ made up of the following members and substitutes:

• One member and one substitute appointed from among the Executive Committee of the CAA by the Government in Council on the proposal of the Minister responsible for the insurance sector;
• One member and one substitute, representing the Minister responsible for the insurance sector, appointed by the Government in Council on the proposal of the Minister responsible for the insurance sector;
• One member and one substitute, appointed from the judiciary by the Grand Duke on the proposal of the Government in Council.

The chairman of the ‘comité de direction’ is the member appointed from the Executive Committee of the CAA, and, if he/she is unable to attend, by his or her substitute.

The ‘comité de direction’ is assisted by the CAA in the performance of its missions. To this end, the FIAA and the CAA cooperate closely and exchange the necessary information.

Lastly, the FIAA may request the services of external experts and advisors in the course of its missions.

What are our financial resources?

Pursuant to Article 23-4 of the Law the FIAA is funded by the contributions referred to in paragraphs 2 and 3 of the Law.

In fact, any Member of the FIAA contributes annually, in relation with the last year-end annual accounts at the time of the call for contributions, the highest of the amounts resulting from the application of the following formulas:

• 0,5 percent of gross written premiums, in the non-life insurance class “motor vehicle liability”, net of cancellations; and
• 0,125 percent of the claims outstanding, as defined in Article 37 of the amended law of 8 December 1994 on the annual accounts and consolidated accounts of insurance and reinsurance undertakings governed by Luxembourg law, gross of reinsurance, in the non-life insurance class “motor vehicle liability”.

If the contributions thus collected are insufficient to meet the FIAA’s commitments, it has the right to raise additional contributions “EX POST” from its members.

The FIAA may set up additional financing mechanisms, in particular debt financing, and mechanisms enabling the FIAA to obtain funds in the short term to meet its commitments, in particular by contracting lines of credit.

Finally, in order to cover its operational costs, the FIAA is authorised to collect administrative contributions from its members, in proportion to gross written premiums, in the non-life insurance class “motor vehicle liability”, net of cancellations, in relation with the last year-end annual accounts at the time of the call for contributions.