In Belgium, more than half a million workers have a company car. This type of extra-legal benefit is common, but it regularly raises practical and legal questions, particularly when an accident occurs.
The handling of such a claim depends on several factors: the driver's liability, the type of contract (operational leasing, financial leasing or vehicle owned directly by the employer) and the insurance cover provided. Here is an overview of the key points, illustrated with a few concrete examples.
Liability for the accident
- If the employee is liable: civil liability insurance (motor vehicle liability insurance), which is compulsory for all vehicles, will cover compensation to third parties. Damage to the company vehicle will only be covered if comprehensive insurance has been taken out.
- If the employee is not liable: the insurance of the party at fault will cover the damage.
- Shared liability: in some cases, the cost may be shared, which has financial consequences for the insurance companies involved.
Who bears the costs?
- The company/lessor (in the case of leasing): generally, it is the employer or the leasing company that owns the vehicle. Repairs will be covered by insurance or, failing that, by the company.
- The employee: he or she may be held liable if the damage results from gross negligence, intentional behaviour (e.g. drink driving) or if a contractual clause provides for a contribution (excess).
- Special case: private use: when the vehicle is used outside of work, the insurance rules remain the same, but the employee may be more easily held liable if the accident occurs outside of the conditions provided for in the company's internal policy.
The role of the leasing and provision contract
- The handling of the accident varies depending on the option chosen:
- Operational leasing: the leasing company remains the owner of the vehicle and generally covers repairs and insurance.
- Financial leasing or direct provision: the employer owns the vehicle and decides on the level of cover.
In all cases, the contract often specifies who is responsible for the excess and any costs not covered.
Complementary insurance
- Comprehensive insurance: covers material damage to the vehicle, even if the driver is liable.
- Driver insurance: protects the employee in the event of bodily injury, which is not covered by motor vehicle liability insurance.
- Roadside assistance: a useful option for rapid assistance for the vehicle and driver after an accident.
Points to consider for employers and employees
- Contractual clarity: the employer must specify in the contract or car policy who is responsible for what (excess, uninsured damage, fines, etc.).
- Communication: the employee must be informed of the rules of use and the possible consequences in the event of an accident.
- Prevention: a responsible mobility policy (training, road safety awareness) reduces the risk of accidents and disputes.
Conclusion
An accident involving a company car in Belgium does not always have the same consequences: it all depends on liability, the contract of hire and the insurance policies taken out. To avoid unpleasant surprises, employers and employees must pay particular attention to the contractual clauses and insurance coverage, ensuring that the division of responsibilities is clear and transparent.
In summary, the key is to anticipate: it is better to clarify the division of responsibilities in advance to avoid unpleasant surprises when an accident occurs.
By Daniel Binamé, Development and Partnerships Manager, Partena Professional
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