Event Data Recorder (EDR) systems in the context of claims adjustment in motor insurance. A case of Poland

Abstract

The aim of this paper is to present relevant information on EDR (Event Data Recorder) as well as to analyse how EDR systems may be applied within the process of claims adjustment in the Polish motor insurance. Although, neither Polish nor European legislation directly refers to the said systems, their significance is continuously growing. The discussed systems are currently applied within the majority of the newly sold vehicles in Poland. Brand new versions of those systems allow identifying some key circumstances and factors of traffic accidents such as the exact place of an accident, velocity of the vehicle, a number of the people involved or a number of explosions of car air-bag inflators. However, it should be noted that originally the EDR systems primarily were to improve a level of driving safely while the identification of traffic accidents causes was only an additional and marginal benefit. In other words, a question should be posed whether it is admissible under the relevant law regulations that the data recorded in the system may in advance determine a cause of an accident. Other doubts which may result from the EDR are privacy concerns and data ownership as well as the use of the EDR systems within a process of detecting potential fraud or offences related to claims adjustment. For obvious limitation of time and space, premium calculation fells outside the scope of this paper as this particular issue requires separate and detailed considerations.