Friendly Settlement

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What is a Friendly Settlement?

A friendly settlement is an agreement between insurance companies applied to compensation for car accidents. Its goal is to provide faster and simpler compensation to insured individuals, reducing legal disputes and speeding up the compensation process.

How Does It Work?

With a friendly settlement, the victim is compensated by their own insurance company, which then communicates with the insurance company of the at-fault driver to cover the costs. This system applies only to accidents within Greece and under specific conditions, such as the compensation for material damages not exceeding €6,500 per accident.

Advantages of a Friendly Settlement

  1. Faster Compensation: Insured individuals receive their compensation more quickly, without having to wait for the completion of procedures between insurance companies.
  2. Reduction of Legal Disputes: The chances of disputes ending up in court are reduced, saving time and money.
  3. Simpler Process: The compensation process becomes simpler and more understandable for insured individuals.
  4. Reduced Stress: Insured individuals do not need to worry about communicating with the insurance company of the at-fault driver, as their own insurance company handles the process.

Conditions for Application

For a friendly settlement to apply, certain conditions must be met:

  • The accident must have occurred within Greece.
  • The compensation for material damages must not exceed €6,500 per accident.
  • There must be an agreement between the involved insurance companies.
  • The involved drivers must have completed and signed the friendly settlement form.

Application Process

  1. Form Completion: After the accident, the involved drivers must complete and sign the friendly settlement form, recording the details of the accident.
  2. Submission to Insurance: The form is submitted to the insurance company of the victim.
  3. Application Evaluation: The insurance company evaluates the application and, if the conditions are met, proceeds with compensating the insured.
  4. Communication with the At-Fault’s Insurance: The victim’s insurance company communicates with the insurance company of the at-fault driver to cover the costs.

Compensation Process

  1. Application Submission: The insured submits the compensation application to their insurance company, along with the friendly settlement form and any other necessary documents.
  2. Application Evaluation: The insurance company examines the application and documents to confirm that the conditions of the friendly settlement are met.
  3. Damage Assessment: If necessary, the insurance company may send an assessor to evaluate the damages to the vehicle.
  4. Compensation Approval: If all conditions are met, the insurance company approves the compensation and informs the insured.
  5. Compensation Payment: The compensation is paid to the insured, usually within 30 days from the application submission.
  6. Communication with the At-Fault’s Insurance: The victim’s insurance company communicates with the insurance company of the at-fault driver to cover the costs.

 

Example of a Friendly Settlement

Let’s look at an example to better understand the process:

John and Maria had a minor car accident. John was at fault, and Maria was the victim. Immediately after the accident, they completed and signed the friendly settlement form. Maria submitted the form to her insurance company, which evaluated the application and proceeded with her compensation. Then, Maria’s insurance company communicated with John’s insurance company to cover the costs.

 

The friendly settlement is an important tool for faster and more efficient compensation of insured individuals in case of an accident. With its application, insured individuals can feel safer and more protected, knowing that their compensation will be processed quickly and without unnecessary delays. Additionally, the reduction of legal disputes and the simplification of the process contribute to improving the overall experience of insured individuals.

According to data from the Hellenic Association of Insurance Companies, the friendly settlement has proven to be highly effective in faster compensation of insured individuals. Approximately 80% of compensation claims through friendly settlement are completed within 30 days. Additionally, the reduction of legal disputes has contributed to lowering costs for insurance companies and insured individuals.

 

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