Personal injury accidents involving motor vehicles: understanding the IRCA agreement and its impact on fleets

Analyses

5 minutes

15 December 2025

In 2024, 235,600 people were injured on the roads of metropolitan France.

Bodily injury in automobile liability represents only 1.7% of the total automobile claims (about 131,000 cases). However, their economic impact is significant: nearly one-third of the 12 billion euros in compensation paid to automobile accident victims in 2022.
Although mostly minor (90% of cases presenting an AIPP/DFP ≤ 5%), these claims require specific management. This is where the IRCA convention - Automobile Bodily Injury Compensation and Recourse - comes in, a key system to simplify and expedite the management and settlement of automobile bodily injury claims.

*2024 Report from the national interministerial road safety observatory (ONISR)
**AIPP = Physical and Psychological Integrity Impairment. It is the common law disability rate determined by a specialized physician in bodily injury repair. DFP = Permanent Functional Deficit These two acronyms designate the permanent disability of an individual to recover their full physical or psychological capabilities after an accident.

convention IRCA

What is the IRCA convention?

Less known than the IRSA material convention, the IRCA nevertheless occupies a central place in the recourse management system between insurers in France. With a membership rate of 99% of insurance companies, it constitutes an essential pillar to streamline exchanges and simplify the processes related to bodily injuries.

Objectives of the IRCA convention:

  • Accelerate compensation of victims of accidents bodily by avoiding legal proceedings, often resulting in significant delays and costs.
  • Limit complex negotiations and multiple assessments, thanks to clear rules and shared.
  • Fairly distribute responsibilities and costs among insurers, according to predefined scales.

Application conditions:

  • Rate of AIPP (Physical and Psychological Impairment) \≤ 5% : two vehicles insured involved in an accident resulting in light bodily injuries
  • Respect for deadlines and rules for the submission of claims, which vary depending on the severity of the injuries

The two different recourse modes provided by IRCA:

  • AIPP 0%: flat-rate recourse whose amount can vary from year to year (€1,170 in 2025, €1,150 in 2024).
  • AIPP between 1% and 5%: recourse at the actual cost, supervised by the convention to ensure transparency and fairness.

Why is the IRCA convention strategic for your fleet?

Understanding the mechanisms of IRCA is essential for:

Mastering the costs related to bodily injuries.

Ensure quick and appropriate compensation for employees.

Avoid disputes and additional delays.

Case study: how does the IRCA convention actually work in practice?

  • Accident between two vehicles in 2025: vehicle B hits vehicle A from behind.
  • Both vehicles are insured with companies adhering to the IRSA and IRCA conventions.
  • Driver A is injured.

Compensation for victims of traffic accidents is governed by the Badinter Law.
According to its article 4, the fault committed by the driver may reduce, or even exclude, their right to compensation. In our case, Driver A, having committed no fault, is therefore entitled to full compensation.

The Badinter Law provides that the insurer of the vehicle involved must assume the mandate of compensation. However, the IRCA Convention modifies this principle: it stipulates that it is the insurer of the vehicle transporting the victim who must take on this mandate. In our case, it is therefore the insurer of vehicle A who must compensate their insured, the victim driver.

This insurer will implement the necessary precautionary measures for the assessment of the file and will be responsible for the mandatory offer procedure imposed by the Badinter Law.

Impact n° 1 of the IRCA: it modifies the actor in charge of managing compensation, in order to simplify and accelerate the process for the victim.

Case 1: AIPP 0% (no lesions, very light)

  • Total compensation to the victim: €345 + Additional costs (doctor's fees, CPAM): €503.50. Total: €848.50
  • Recourse IRCA lump sum because victim AIPP 0%: €1,170

Positive impact of the IRCA convention: +321.50 € for the insurer.
Attention: if the total cost of the file (victim compensation + CPAM) is higher than the flat rate of 1,170 €, the impact is negative on the burden of this file.

Case 2: AIPP 2% (more severe injuries)

  • Total compensation to the victim: €9,630 + Additional costs (fees for medical expert, CPAM): €2,303. Total: €11,933
  • Recourse to IRCA at actual cost: €9,860

The use of the actual cost is strictly regulated: The IRCA provides for a waiver of recourse for certain positions of damage and sets a ceiling for others.
In our case, the victim received:

  • An indemnity for the position of "Third Party Assistance", which is part of the positions in waiver of recourse;
  • As well as an indemnity higher than the ceilings for the AIPP and Suffering positions endured.

These elements explain the gap observed between compensation and recourse.Negative impact of the IRCA convention: -2,073 € for the insurer.

Impact number 2 of the IRCA: it can have positive or negative repercussions on the claims burden, depending on the situations encountered.

Etienne de Font Reaulx
The role of our experts is to support our fleet clients on a daily basis in understanding the mechanisms of management and compensation for material and bodily accidents, whether they are simple or complex.
Etienne de Font Reaulx
Etienne de Font-Reaulx - Director of the Fleet Automobile line

Contact our teams to assess the impact of the IRCA on your fleet and identify optimization opportunities.

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Étienne de Font-Réaulx

Automobile Department Director

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