Were you involved in a traffic accident as a passenger or occupant, while you yourself did nothing wrong? In that case, you may be classified as a faultless third party. In this situation, Industry Regulation 7 plays an important role. Yet this regulation is unknown to many victims, causing them to wait unnecessarily long for compensation.
In this article, we therefore explain in detail what Industry Regulation 7 entails, when this regulation is applied, and what this concretely means for your personal injury. Moreover, you will read which steps you can take to have your damage compensated quickly and in full.
What is Industry Regulation 7?
Industry Regulation 7, also known as the regulation for the faultless third party, is a mutual agreement between Dutch insurers. This regulation is intended to prevent an innocent victim from suffering the consequences of a dispute between insurers about the question of fault.
It is therefore not a statutory regulation, but a practical agreement within the insurance industry. Nevertheless, Industry Regulation 7 has great significance in practice for victims of traffic accidents.
Who is a faultless third party?
A faultless third party is someone who did not contribute to the occurrence of the traffic accident. This often concerns:
- a passenger or occupant of a car;
- an employee being transported by a colleague or employer;
- a passenger in a company van;
- an occupant of a taxi or delivery vehicle.
The defining characteristic is that the faultless third party had no influence on the driving behaviour and therefore cannot be blamed.
When does Industry Regulation 7 apply?
Industry Regulation 7 does not apply to every traffic accident. The regulation is applied when a number of conditions are met.
Specifically, there must be:
- a traffic accident involving at least two motor vehicles;
- a faultless third party who has sustained personal injury;
- a situation in which the question of fault between the vehicles involved is unclear or disputed.
Precisely because the insurers cannot agree amongst themselves on liability, Industry Regulation 7 offers a solution for the victim.
Why does Industry Regulation 7 exist?
Without Industry Regulation 7, a faultless third party would have to wait until insurers had determined among themselves who is liable. That can take months or even years. In the meantime, the victim is left without compensation.
Therefore, insurers have agreed that one insurer will fully compensate the damage of the faultless third party in advance. Subsequently, the insurers settle among themselves who ultimately bears which costs.
For the victim, this is a major advantage: you do not have to wait for a complex liability dispute.
What does Industry Regulation 7 concretely mean for you?
If Industry Regulation 7 applies, you can approach the compulsory motor insurance (WAM) insurer of one of the vehicles involved. This insurer must then fully compensate your damage.
Importantly, you do not need to prove which driver was at fault for the accident. The regulation protects you precisely against that evidentiary problem.
What damage is compensated?
Under Industry Regulation 7, in principle all personal injury damage is eligible for compensation. Consider, for example:
Material damage
- medical costs;
- travel expenses;
- costs for domestic help;
- home modifications;
- damage to personal belongings.
Loss of income
Are you temporarily or permanently unable to work? Then loss of income may arise. Loss of earning capacity also falls under this category.
Pain and suffering compensation
In addition, you may be entitled to pain and suffering compensation: a payment for pain, grief, and loss of enjoyment of life. You can read more about this on our page pain and suffering compensation for personal injury.
Do you have to approach an insurer yourself?
In theory, you can contact an insurer yourself. In practice, however, we see that insurers do not always apply Industry Regulation 7 spontaneously.
It is therefore wise to seek legal assistance. This prevents delays and disputes about the applicability of the regulation.
More general information about personal injury can be found on our page personal injury lawyer.
Difference from Article 185 Road Traffic Act
Industry Regulation 7 is sometimes confused with the protection of vulnerable road users under Article 185 of the Road Traffic Act. Yet these are different regulations.
Article 185 RTA primarily concerns cyclists and pedestrians. Industry Regulation 7, on the other hand, is specifically intended for occupants and passengers who are classified as faultless third parties.
Evidence and disputes with insurers
Although Industry Regulation 7 protects you, insurers sometimes still attempt to dispute its applicability. They may argue, for example, that there is no faultless third party.
That is precisely why it is important to substantiate your case well and seek legal advice in a timely manner.
Frequently asked questions about Industry Regulation 7
Does Industry Regulation 7 apply automatically?
No. The regulation is not always applied automatically. In practice, an explicit appeal must often be made.
Can the insurer refuse?
An insurer may take the position that the regulation does not apply. However, that does not mean this position is correct.
How quickly will my damage be compensated?
Precisely because Industry Regulation 7 is intended to prevent delays, the damage can often be settled more quickly than in regular liability disputes.
Does legal assistance cost me money?
In personal injury cases, the costs of legal assistance are usually recovered from the liable insurer. As a result, you as a victim bear no net financial risk.
Why choose Arslan Advocaten?
We have extensive experience with personal injury cases in which Industry Regulation 7 plays a role. We know when this regulation applies and ensure that insurers actually apply it.
In addition, we communicate clearly, act decisively, and are committed to achieving full compensation.
More general information about traffic law can be found at the Dutch Government.
Would you like to know whether you are entitled to compensation as a faultless third party? Feel free to contact us for a no-obligation assessment.