Fonds de Garantie

What the Fund does

The Guarantee Fund, an agency that provides compensation in the general interest

Originally, the Guarantee Fund (known, since 2003, as the Mandatory liability insurance guarantee fund or “FGAO”) was set up to indemnify road traffic accident victims whether or not the person(s) responsible were insured and whether or not they were identified. Its areas of competence were gradually extended to include compensation for personal injury caused as a result of hunting or road traffic accidents, damage caused by a technological disaster, and damage or injury following collisions with wild animals, work in the mining industry or a default on the part of an insurance company. Moreover, the FGAO was given responsibility for funding and managing increases in annuities paid to RTA victims. Finally, it acts as a compensation agency for international road traffic accidents.

Over the years, thanks to its expertise, the Guarantee Fund has served as a benchmark for other funds set up for the same purpose but for different risks. In 1986, for example, an indemnity fund was set up for victims of terrorist attacks in France and for French nationals injured in terrorist acts in a foreign country such as Karachi in 2002, Madrid in 2004, London in July 2005 or Cairo in 2009.

In 1990, the Fund indemnifying the victims of terrorist acts was extended to cover the victims of other criminal acts. It was renamed the Guarantee fund for the victims of terrorist and other criminal acts (FGTI), and the FGAO was given responsibility for its management.
The Law of 1st July 2008, which took effect on 1st October 2008, gave the FGTI yet another task. It was to assist victims of criminal acts who could not get compensation to obtain the performance, by the person responsible for the act, of the Court ruling granting the victim damages and interest. The system is referred to as the SARVI. This compensation provided by the Guarantee Fund has a flip side – recourse taken against the person(s) responsible whenever possible. By demanding that they reimburse the sums paid out by the Guarantee Fund to victims, they force them to take responsibility for their actions. It also underlines the Fund’s determination to ensure good management for payments from the insured and the insurers.

The Guarantee Fund has also been given the task of preventing road traffic accidents and fighting the trend towards not insuring a vehicle. Because it can measure very exactly the sometimes dramatic consequences, for the person(s) responsible and for their families, of the damages or injuries they have caused, the Guarantee Fund began taking actions in 2006, with its partners, to reduce these risks.

The Guarantee Fund, funded by the national community

The Guarantee Fund receives no subsidy from the State budget. Its resources come from the following :

  • contributions from insured parties and insurers calculated according to the insurance contract. For the FGAO, these contributions represent 1.2% of the automobile third party liability premium for insured people and 1% of annual expenditure for insurers. For the FGTI, they amount to 4.30€ per asset insurance contract,
  • income from recourses instigated against the person(s) responsible,
  • income from its investment, giving it financial independence.

The Fund is nevertheless under the supervision of the Ministry of the Economy, Industry and Employment which sets the level of contributions.