The freezing of the RCA insurance policies infringe European laws, Romanian constitution – insurers association says

The freezing of the compulsory insurance policies (RCA) violates both European norms and the Romanian Constitution and it will adversely affect consumers, the representatives of the National Association of Insurance and Reinsurance Companies in Romania (UNSAR) have said on Tuesday.

“The insurance companies comply with the laws in force, and therefore the maximum tariffs imposed by the Emergency Ordinance will certainly be respected. We emphasize, however, that UNSAR pointed out several times on the illegality of that provision. The freezing of RCA levels for premiums violate both the European norms and Romania’s Constitution. Moreover, we believe that any intervention in capping the tariffs without taking into account the realities of the insurance market will impact in a negative way the consumers, because it will lead to a levelling: price increases for the client groups with a better attitude in traffic and lower prices for categories with high risk,” UNSAR says about the decision on the maximum premium rates for compulsory auto insurance for damages to a third party by motor vehicle accidents.

UNSAR also underscores that it has always expressed availability to contribute to the elaboration of the legal framework regarding the RCA, nevertheless the pressures coming from transporters have led to regulations that will negatively impact the market.

The Confederation of Operators and Certified Transporters in Romania (COTAR) has rejected on Tuesday the Financial Supervisory Authority (ASF) proposal on the level of premiums amounting to RON 7,540 for the compulsory insurance policies (RCA) for vehicles of over 16 tonnes and recalls that the risk premium for this category is RON 2,011, while the remaining RON 5,949 represents administrative costs and the profit of insurance companies coming from RCA.

Transporters will pay a compulsory auto insurance (RCA) premium of maximum RON 7,534 for a cargo vehicle with weight exceeding 16 tonnes, while for passenger vehicles with a capacity of over 40 seats the maximum premium will be of RON 6,600, according to a Financial Supervisory Authority (ASF) press release issued on Monday. For individuals, for a vehicle with an engine capacity of 1201-1400 cc, whose owner is aged between 31 and 40 years, the maximum premium rate is of RON 610.

ASFauto insurancecompulsory insuranceCOTARemergency ordinancefinancial supervisory authorityfreezinginsurers associationRCAtariffsUNSAR
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