The Competition Council recommends capping car repair costs

​The Competition Council gave a favorable opinion for establishing maximum rates at RCA, but with a recommendation: during the 6 months of freezing RCA prices, there should also be a ceiling on compensation related to material damage, i.e. a limitation of the costs of service repairs- car doors.

The authority led by Bogdan Chirițoiu formulated the following recommendation to the Government “considered to be a measure proportional to the establishment of maximum tariffs for RCA policies”: “During the application of the provisions of this Government Decision, the level of compensation related to material damages will be established based on the information obtained through platforms specialized in the assessment and administration of car damages, at the time of their assessment.”

“We will give the opinion this afternoon and we will basically say what we have publicly stated so far: that we agree in principle with the capping, that it is justified. (…) It is good that we do not only cap the final result , the RCA policy, but also the cost elements that lead to that price, because you can’t just cap the result, without looking at the components of that result. Yes, it’s good that we have a limit set on the commissions that brokers have, we have a cap on the cost of the replacement car, on the daily rental for the replacement car. But by the same logic, we should also have a cap on the cost of repairs, both parts and labor. That’s our only recommendation. So, we approve this Government Decision on capping, but we have the recommendation to extend it, to include the cost of repairs”, said the president of the Competition Council.

He argued that the purpose of capping is to reduce panic in the market and to give companies time to do their calculations.

“We are capping now so that we don’t have a price explosion and the expectation is that, in a few months, things will settle down, calm down and when the capping period ends, we won’t have a price explosion”, said Chiriţoiu, as quoted by Digi24.

Bogdan Chiritoiucar repairceilingcompensationCompetition CouncilcostsdamageRCA
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