Classifications

• • G—PHYSICS
  • G06—COMPUTING OR CALCULATING; COUNTING
  • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
  • G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
  • G06Q40/08—Insurance

Definitions

• TITLE SYSTEM AND METHOD FOR RECOVERY OF LOSS CAUSED BY MOTOR VEHICLE DRIVERS
• This invention relates to a system for recovering from an errant driver money relating to damage he has caused as a result of his driving, as well as for the management of compensation for loss in the form of damage to property resulting from the driving of motor vehicles.
• Another object of the invention is to provide an loss recovery system which has provision for a driver found to be at fault to pay for damage caused by his actions in an amount directly representing the quantum thereof.
• a further object of the invention is to provide a loss recovery system in which the party suffering loss as a result of the action or omission of a reckless driver receives compensation, irrespective of the driver's capacity to pay for the loss caused and irrespective of the insurance status of both parties.
• the invention provides a system of risk management for motor vehicle drivers according to which, instead of paying a premium in advance and being financially relatively lightly affected by the consequences of having an accident, even though he might have been largely legally responsible for it, a driver, who is registered with a fund administrator according to the system, pays after the event an amount related to the loss he has caused to a third party and for which the driver's fund administrator has already compensated the third party.
• the invention thus provides a system of risk underwriting that can be compulsorily implemented and according to which:
• each driver licensed to drive a motor vehicle is registered with an administrator of a fund having capacity to pay compensation to a third party, to whom a registered driver causes loss through his driving;
• a method for recovering money from a driver who has caused property damage to a third party as a result of his driving a motor vehicle comprising the steps of determining a quantum of loss caused by the driver to the third party; paying to the third party, from a fund established for this purpose, a first amount of money relating to the quantum, and causing a bill to be issued to the driver for a second amount, said second amount being commensurable with the quantum, thereby to cause the driver to become personally financially liable, after the damage-causing event, for a substantial portion of the damage caused by his driving.
• the step of determining the quantum includes apportioning liability for the quantum between the driver and a second person, if said person is found to have contributed causally to the damage.
• the method includes the step of convening a panel to adjudicate on apportionment of the liability.
• the bill is issued by an administrator of the fund.
• the first amount is substantially equal to the quantum.
• the second amount is substantially equal to the first amount.
• the method includes the step of determining a payment plan for the bill to be paid by the driver in instalments. In a still further preferred form of the invention, the method includes determining the instalment amount according to the driver's financial means.
• the method includes the step of causing at least a portion of the second amount to be debited against a financial resource of the driver
• a computer-managed loss recovery system for recovering money from a driver who has caused property loss to a third party as a result of his driving, comprises means for storing a value relating to a quantum of loss caused to a third party by the driver through his driving, compensation means for compensating the third party for the loss from a fund established for this purpose, and means for issuing a bill to the driver for an amount that is commensurable with the quantum, thereby ensuring that the driver incurs an expense that is related to the damage he has caused.
• the bill is equal to the full amount of the claim.
• the system further includes assessment means for determining said quantum.
• the assessment means includes means for calculating the cost of making good the loss.
• the system extends also to recovery means for recouping from the driver the amount in the bill.
• the recovery means includes means for recovering the billed amount in at least two instalments.
• the recovery means includes means for transferring money from a financial resource of the driver to the fund.
• the financial resource preferably is a bank account.
• the system comprises a database of licensed drivers and data-receiving means for receiving and recording information relating to the loss caused by each respective driver.
• the information preferably relates to the driver's identity, his driving behaviour, the damage caused and the quantum.
• the database preferably includes information pertaining to the financial resources of each driver, reflecting on his or her ability to pay compensation to the party suffering loss as a consequence of his conduct.
• the data-receiving means is configured to receive information from any one or more of the driver, the third party and a law enforcement authority.
• the data-receiving means is configured to receive information by means of an online computer network.
• the data-receiving means may comprise an input interface connectable with telephone input means.
• the system additionally includes comparison means for comparing financial resources of the driver with the quantum, and planning means for establishing a payment plan according to which the driver must reimburse the fund for at least a substantial portion of the quantum.
• the system includes means for determining instalments by which the driver is to reimburse the fund for said portion, according to the payment plan. The instalment amount is determined preferably with reference to the financial resource information contained in the driver database.
• the system further comprises means for determining whether or not the driver has defaulted on an instalment and if so, for suspending the driving licence of said driver.
• the system preferably includes a process for lifting the suspension when predetermined conditions have been met.
• the system comprises a database of repair service providers capable of repairing property damage caused by motor vehicle drivers.
• system further comprises means for requesting and receiving data on repair costs from the service providers.
• the compensation means includes means for transferring funds to a financial institution nominated by the party suffering the loss.
• the transferring means preferably includes an interface between the system and the financial institution.
• a method of managing property loss claims relating to damage caused by the driving of a motor vehicle comprises: a. establishing a fund administrator for administering a compensation fund, b. registering a plurality of licensed driver as clients of said fund administrator; c. setting rules governing the treatment of claims for compensation from said funds in respect of property loss caused by drivers who are registered as clients of said administrators, d. establishing a network of repair service providers; e. causing said at least one fund administrator to: i. receive claims relating to the driving of client drivers, ii.
• claim treatment rules iii. determine the merits of the claims, iv. transmit a claim pertaining to an property loss to a repair service provider selected from said service provider network for implementation of said claim treatment rules, v. pay an amount in settlement of said claim in accordance with a determination made according to the said rules; and vi. recover from the driver, whose conduct contributed to said loss, at least a portion of the settlement amount.
• the method further includes recovering the settlement amount by way of a plurality of instalments.
• the method further includes the step of determining whether or not the driver has defaulted on an instalment and if so, suspending the driving licence of said driver.
• the method preferably includes including criteria for lifting such suspension in the rules.
• a computer- implemented method for managing the recovering of money from a driver in relation to a property loss claim relating to damage caused by said driver's driving of a motor vehicle, for which loss compensation is payable on behalf of the responsible driver, by a fund administrator responsible for compensating a third party for loss caused by said driver comprising: a. maintaining a first database containing information relating to individual drivers on whose behalf a fund administrator bears responsibility for compensating third parties for loss caused by said drivers, b. maintaining a second database of repair service providers; c. maintaining a set of rules governing the treatment of claims for compensation lodged by third parties against drivers on the database, d.
• the method includes providing the administrator with communication means for obtaining driver-related data from a driver licensing authority.
• the method comprises recovering the amount paid out in a series of instalments calculated with reference to the driver's financial resources.
• the method also comprises determining whether or not the driver has defaulted on an instalment and if so, suspending the driving licence of said driver.
• the method includes providing online means for a driver to register with the fund administrator.
• a loss recovery system comprises electronic data-gathering and -processing means programmed and configured to provide an interface with a human driver of a vehicle, through which interface the driver is able to apply for financial support to cover his potential liability for loss caused to a third party as a consequence of said driver's driving of a vehicle, means for collecting funds from the driver, means for paying out funds to a third party in the event of said party suffering loss caused by said driver, means for obtaining and processing data pertaining to the liability of the driver for said loss, and means for determining and adjusting the amount to be collected from the driver according to a predetermined criterion relating to his financial resources.
• the invention extends to a method of operating a computer-managed system for recovering money from a driver of a motor vehicle, who, through his driving has caused loss of property to another person, the method including the steps of programming a computer to receive first data relating to a quantum of damage for which the driver is responsible, and second data relating to the driver's capacity to pay an amount equal to the quantum, and programming the computer to determine a payment plan taking into account the driver's capacity to pay the quantum, and further programming the computer so that in accordance with the plan, it issues a bill to the driver for payment pursuant to the plan.
• the method includes further programming the computer system to debit a financial resource of the driver and credit the amount debited to a fund for receiving the driver's payment.
• the invention provides a method of encouraging a motor vehicle driver to alter his attitude toward driving recklessly, the method including the steps of providing a computer-managed system comprising a database and a central processing unit which has been programmed to capture and store on the database a first data set of information pertaining to a plurality of licensed drivers, a second data set of information relating to motor accident damage caused by drivers in the first set, and a third data set containing information on the financial resources of each driver causing damage; operating the computer to determine, using the first and second data sets, a sum of money to be billed to a driver as reparations to a fund which has paid out compensation, on the driver's behalf, to a person to whom he has caused loss through his driving; calculating using the third data set a payment plan, and, in accordance with the plan, causing transfer of money from the financial resources of the driver concerned to the fund, thereby reimbursing the fund for the compensation it has paid out on the driver's behalf.
• a computer-managed system comprising
• FIG. 1 is a process flow diagram showing steps of the invention according to a preferred embodiment
• Figure 2 presents a block diagram representing functional modules of the system of the invention in an embodiment. Description of embodiments of the invention
• a system for recovering from the driver of a vehicle rather than from its owner for loss caused by that driver.
• the risk underwritten relates to the liability of the actual driver of the vehicle for loss caused by or attributable to his driving.
• every licensed driver is required to obtain and maintain current his registration with the administrator of a loss compensation fund in respect of his liability for loss, such as in the form of damage caused through his use of a vehicle.
• the terms and conditions of the registration would be universal (or at least national), in the sense that each fund administrator would be required to offer substantially identical terms, to ensure that every instance of loss is covered in the same manner and to the same extent.
• the fund administrator may be an insurance company who collects contributions from registered drivers and either deposits the subscriptions into a fund that it administers itself, or transfers them on to a centralised fund administered by a separate entity, for example a government department or statutory body.
• Each fund administrator will put in place a computerised system for collecting subscriptions from the drivers it has registered. From the time of a driver's first registration under this system until the time of his first being found liable for loss to the property of a third party through his driving, his subscription will be a relatively very small amount: Preferably, it will be in an amount calculated to cover little more than the administration costs of the fund administrator with whom he has registered and a component for contingencies. However, should the driver be found liable for the abovementioned loss, and he is permitted to reimburse the fund in instalments, his subscription may be adjusted to include a compensatory component calculated to reimburse his fund for compensation paid out on his behalf.
• a centralised collections agency is established for receiving payments (subscription instalments or lump sums) from the registered drivers and distributing the proceeds to the different funds to recompense them for settlement of claims, or to build their reserves.
• the premiums may alternatively be collected as an annual payment that may be levied together with the driver's renewal of registration for his vehicle. They could also be collected by his vehicle financier, if any and forwarded to the relevant fund.
• the amount of the contingency component in the subscription is small in comparison to the repayments to be made in the event of being liable for accident damage.
• the contingency component accumulates in a fund associated with the individual driver (140) and, in a further embodiment, the balance will become available to the driver when he ceases to be a licensed driver, subject to deductions required for repairing damage he has caused. It is envisaged that the impending sudden escalation in payment amounts associated with damage costs resulting from reckless or unlawful driving conduct will serve as an incentive to the driver to adopt a responsible attitude as road user.
• the contingency component may be paid into a driver loss recovery pool that will serve as a fund for guaranteeing compensation in cases of large payouts that are beyond the means of most drivers, even if recouped over a long period of instalments.
• a driver If a driver is permitted to repay an amount billed to him for damage caused according to a repayment plan, his repayments will be adjusted by the administrator so as to pay back, over a predetermined period, the amount billed, optionally also including interest added at a set rate and compounded.
• the payback period may be determined by a formula relating to the quantum of loss so as to impose a suitably heavy burden on the driver at fault, no matter how slight the related damage is, but taking into account the driver's financial circumstances.
• the driver will be means tested for his ability to pay the reimbursement instalments, especially taking into account his disposable income.
• the driver without income in the example above obtains employment, his repayments can be adjusted to shorten the period of indebtedness. It is envisaged that a lower interest rate would apply the shorter the payback period. This may be used as a way to incentivise the unemployed to obtain employment. Alternatively, the unemployed driver may be subjected to an assets test to establish whether assets can be liquidated to repay his debt.
• the amount to be paid and the frequency and duration of instalments is determined in the case of a single vehicle accident by a computer programmed so that it has the facility for receiving inputs from the driver database and the quantum of damages payable. In the case where two or more drivers are involved, an apportionment of blame must be made, as well as of the amount of the damage bill. This is achievable in a first set of cases by means of software designed to take into account data relating to the damage-causing event. Alternatively, a specialist panel can be constituted for a second group of cases for which the software cannot satisfactorily cater.
• the system extends in an embodiment to include online conferencing means by means of which the panel may deliberate. These may be video conferencing or web-based document exchange conferencing.
• the panel may for example include the following as members: a police officer, preferably of senior rank and having experience of motoring violations, a representative from each of the drivers' administrators or insurers, and a representative from a motoring organisation, such as a national touring club, the Automobile Association (AA), or the Royal Automobile Club (RAC).
• a police officer preferably of senior rank and having experience of motoring violations
• a representative from each of the drivers' administrators or insurers and a representative from a motoring organisation, such as a national touring club, the Automobile Association (AA), or the Royal Automobile Club (RAC).
• AA Automobile Association
• RAC Royal Automobile Club
• the panel is tasked with examining all the data available about the damage- causing event and deciding on the apportionment of liability between the drivers involved.
• the data contemplated includes reports from each of the drivers involved, from witnesses and from the police or other municipal or state authority having investigative responsibilities in relation to the event.
• the apportionment will then be used to determine the quantum to be repaid to his administrator by each driver and the amounts to be paid to the respective party suffering loss as a result of the damage caused by each such driver.
• the loss recovery policy framework will be used for determining then the instalment amounts and their frequency and duration, on the basis of the personal circumstances of each driver and a means testing algorithm. Alternatively, the administrator may be empowered to negotiate repayment terms with the registered driver.
• the panel will also determine and rule on the quantum of the damages, by examining quotes obtained by the drivers from repairers. The amount determined will be paid to the third party who suffered the loss, for effecting repairs or replacing a written-off vehicle.
• the system preferably includes means for a driver to lodge an appeal against the panel's decision with a judicial authority having jurisdiction.
• the appeal lodging means in an embodiment comprises online communication links between the appealing driver, the panel, the administrator and the judicial authority.
• a central payment subsystem is established to process payments under the system.
• the payment subsystem will take transfer of funds from the fund, use these to pay out the third party suffering the loss, or the nominated repair service provider and deduct instalments from the banking account of the driver, or directly from the driver's employer, if an arrangement such as an emoluments attachment order has been put in place.
• the payment subsystem includes means for monitoring payments received from the liable driver and to alert defaults to the administrator and the licensing authority.
• the system is programmed to suspend the driving licence of the defaulter and serve notice on the driver concerned, as well as on the law enforcement agencies, his vehicle finance company (if applicable) and administrator concerned.
• the system preferably includes a process for lifting the suspension when predetermined conditions have been met. These conditions optionally relate to the circumstances of the suspension, the period thereof, the amount of compensation outstanding and the setting of revised repayment terms.
• the system includes means for integrating the compensation fund registration details of each driver with records of the driver held by the licensing authority, or with records retained in a national register of licensed drivers. These means may further include an interface with the tax authority or welfare agency for income, asset and means testing.
• the invention further extends to including means for identifying the driver having use of the vehicle at any time.
• the identification means is a paper logbook that each driver is required by law, or by the terms of his driver registration under the system of the invention, to fill in at the start of a journey and sign off at the end. The logbook would have to be retained in the vehicle at all times and must account for every kilometre travelled.
• the identification means is an electronic logbook that is interfaced with the vehicle ignition to prevent a driver starting the engine unless he has identified himself with an unique key.
• the key may be contained in a smart card or barcode, or may be simply keyed in as the driver's name.
• the inputted data would be retained in the on-board computer system of the vehicle.
• an identification system would be retrofitted to the ignition.
• Means would be provided such as a smart card that can be inserted into the computer and on to which driver data can be downloaded for display on a personal computer (PC).
• PC personal computer
• the identification system comprises wireless or satellite linked mobile two-way communications providing for details of the driver seeking to turn on the ignition to be communicated to the central driver repository and for confirmation to be communicated from the repository to the vehicle computer system whether the driver is in possession of valid driver registration under the system of this invention. If not, the on-board computer will be programmed to disable the ignition for this driver.
• the central driver repository is linked to the administrator CPU to enable updating of the driver database with details of each journey undertaken by a particular driver. This allows tracing of driver activity.
• the driver would then become liable for payment of reparations in respect of both the owner of the vehicle he was driving and the vehicle of the other party (subject to apportionment of their liability).
• the driver concerned will notify his fund administrator.
• each driver In the event of a collision involving two or more vehicles, each driver must notify their respective fund administrator.
• a computerised interface receives data relating to the event. The data is inputted by any one or more of the driver, the party suffering the loss and the law enforcement or emergency services.
• the fund administrator's computer system issues instructions to the registered driver concerning getting repair quotes and receives the information from the repairers selected to quote. Typically, the quotes will be submitted online.
• the fund administrator's software processes the repair information including prices and repair details, makes an election of a repairer and issues instructions to the elected repairer. Further, the software includes programming for the fund administrator to communicate with any witnesses notified in the event data, gathers police reports and other relevant information.
• the fund administrator will convene an assessment panel to determine the apportionment of liability and of resultant damages to be recouped.
• the biographical details of prospective panel members are held in a database that is accessible from the fund administrator's computer system.
• the system software is desirably programmed to select suitable members according to the particulars of the damage-causing to be assessed and notify them of the event to be assessed.
• Managing and co-ordinating the system is a central processing unit 12 which is linked with and configured to process data received from a claims module 14, which is linked to a claims input interface 16 in a remote computer network.
• the claims input interface 16 receives data relating to the happening of a damage-causing event, as a result of which loss has been caused to property by a registered driver.
• the data may be entered locally at the fund administrator, or over a remote network of computers such as the internet or via a telephone network comprising a call centre.
• the data may be entered by any or each of the drivers involved, the third party suffering the loss, a law enforcement agency or emergency assistance service, or by the fund administrator on instructions from a party having an interest in the property that has been damaged in the damage-causing event.
• Also connected for data transfer to and from the CPU 12 is a database 18, comprising data relating to repair service providers. The database is regularly updated.
• the database provides information about the locations, capabilities and areas of expertise of the service providers, as well as rate of charges for their services, so that an appropriate and qualified service provider is selectable by the CPU, based on the data received via input interface 16 in relation to the loss caused.
• the repairer database 18 may be updated using input submitted from time to time by the service providers concerned or by the fund administrator regularly interrogating them such as by way of an online survey. In addition, after each job performed by such service provider under instructions from the fund manager, the fund manager will update the database.
• the system also includes a second database 20, comprising data relating to the drivers registered with the fund administrator concerned.
• the data is obtained via a data input and output (I/O) management module 22 which is in communication with an input interface 24 either directly from the driver signing up for the fund administrator's policy, or from the licensing authority, or from both.
• I/O data input and output
• the CPU 12 is configured and programmed to process the event data and interrogate the driver and repair service provider databases (18, 20) so as to extract data pertaining to a driver involved in the event.
• the data would include name, address, driving records, income and employment details, bank details and the like.
• the CPU 12 is programmed to match a repair service provider member with the repair services pertinent to the damage caused and the location of the damaged property, select a suitable repairer and communicate instructions to the selected repairer to repair the damage and to the party suffering loss, regarding arrangements for the repairs.
• the CPU 12 is further programmed to communicate with a payment collection module 26 for collecting payment from the liable driver to reimburse the fund administrator, by means of an interface with the driver's financial institution 28, the payment sum being commensurable with the loss.
• the payment sum will be collected in instalments payable at intervals determined by taking into account the quantum of damages and the personal financial circumstances of the driver concerned.
• Data of the liable driver's financial circumstances are obtained from the driver database 20 or from an agency such as the taxation authority or state welfare department (not shown).
• the determination of the instalment is calculated according to a means testing computer program run by the CPU or set by a ruling from a panel of assessors communicated to the CPU through an input/ output device 30, which also enables data to be supplied to the panel for use in their deliberations.
• the instalment is calculated to reimburse the fund within a reasonably short time by causing a significant reduction in the driver's disposable income and serving as a deterrent against repeat behaviour.
• the instalment amount is calculated to be financially feasible and realistic taking into account the financial circumstances of the driver.
• the calculation of the amount is not intended to force the driver into bankruptcy and can be determined subject to periodic review, including if the driver's personal financial circumstances change [0090]
• the said party receives the adjudicated compensation determined by the means testing program or the panel of assessors (whichever is applicable according to the case).
• the compensation can be paid directly to the fund administrator's nominated repair service provider, though a payout interface with such provider, or through a centralised payment subsystem.
• the system includes means for the driver, in the case where he is also the vehicle owner, to elect the degree of insurance cover he would like for his vehicle when it is parked and not in the process of being used.
• the scheme includes means for the fund to be administered through the offices of one or more vehicle financiers, or for the compensation reimbursements to be collected by the financier of the responsible driver's vehicle.
• the system according to this option further includes input means such as an internet interactive website which, in the event of loss in the form of damage to the insured vehicle, provides for the owner to input the details thereof online for the fund administrator to process the claim, transfer payment electronically to the owner's nominated bank and notify the owner of the outcome of the claim.
• input means such as an internet interactive website which, in the event of loss in the form of damage to the insured vehicle, provides for the owner to input the details thereof online for the fund administrator to process the claim, transfer payment electronically to the owner's nominated bank and notify the owner of the outcome of the claim.
• input means such as an internet interactive website which, in the event of loss in the form of damage to the insured vehicle, provides for the owner to input the details thereof online for the fund administrator to process the claim, transfer payment electronically to the owner's nominated bank and notify the owner of the outcome of the claim.
• features of this optional insurance include that there is no cover provided (or required, because of this invention) for damage to third party property and the insured pays no excess or deductible.
• An advantage of the system of this invention lies in the prospect of reduced demand on police and emergency services, the medical profession and health and rehabilitation facilities. This will reduce costs to state authorities.
• Another advantage is the avoidance of emotional trauma for would-be victims of irresponsible road user conduct, such as in incapacitation and funerals. [0095] A further advantage of the system is that it would replace voluntary comprehensive insurance,
• a fund administrator may be granted initial government- backed funding for establishing a fund from which to pay out third parties - until the fund has reached an acceptable level from pre-payment subscriptions and other permitted investments.
• the fund administrator receives compensation directly related to the amount it has paid out. So the fund administrator or insurer suffers no net loss.
• the risk is borne by the driver and serves as a deterrent to irresponsible driving behaviour.
• the nation benefits through a lowering of the road toll and the national and personal expense associated with it.

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Cited By (1)

• 2010
  • 2010-12-22 WO PCT/IB2010/056010 patent/WO2011077389A2/fr not_active Ceased
  • 2010-12-22 AU AU2010334322A patent/AU2010334322A1/en not_active Abandoned

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