The Direct Compensation Procedure (DCP) is a procedure designed to simplify the reimbursement process for drivers involved in a road traffic accident. It is an alternate course of action to the traditional claims process and allows drivers to receive compensation from their insurance company without the need to go to court. It is applicable in most EU countries and is a convenient way for drivers to receive compensation for any damages incurred in an accident.
What is Direct Compensation Procedure?
The Direct Compensation Procedure (DCP) is a procedure that simplifies the reimbursement process for drivers involved in a road traffic accident. It is an alternate course of action to the traditional claims process and allows drivers to receive compensation from their insurance company without the need to go to court. The procedure is applicable in most EU countries and is a convenient way for drivers to receive compensation for any damages incurred in an accident.
The DCP is based on the principle of direct compensation between the insurance companies of the drivers involved in the accident. When a driver makes a claim, the insurance company of the driver at fault will pay the insurance company of the driver who was not at fault directly. This eliminates the need for the claim to go to court and also speeds up the reimbursement process. The procedure is also beneficial for drivers because it does not involve any additional fees and the amount of compensation is usually higher than what would be awarded if the case was taken to court.
When is DCP not Applicable?
The DCP is not applicable when there are more than two vehicles involved in the accident. In such cases, the traditional claims process must be followed, and the drivers must take the case to court in order to receive compensation. The DCP also cannot be used in cases involving pedestrians, cyclists, or motorcyclists, as they are not covered by the procedure. Additionally, the DCP is not applicable in cases where the driver of the at-fault vehicle cannot be identified or is uninsured.
The Direct Compensation Procedure is a convenient way for drivers to receive compensation for damages incurred in a road traffic accident. However, it is important to remember that the procedure is not applicable in all cases and that the traditional claims process must be followed in some instances. It is also important to note that the DCP does not cover pedestrians, cyclists, or motorcyclists, and that the driver of the at-fault vehicle must be identified and insured in order for the procedure to be used.
