ASSAI: Romania risks infringement due to high RCA level

Romania risks at anytime infringement from the EU and large fines against the Romanian state, incurred by the citizens as taxes, due to the high level of the compulsory insurance policy (RCA), the Association of Independent Auto Services (ASSAI) informs on Monday in a release.

“The Financial Supervisory Authority (ASF) cut by 40% on October 17, 2016 the RCA level for transporters (level capped at RON 7,534) and increased by 31% the RCA level for natural persons (from RON 466 to RON 610). The decision to cap the RCA price, although over short-term it solves the RCA price issue for carriers, has the effect of disfavouring individuals. (…) The RCA price for youth has increased by over 300%, from about RON 585 in June 2014 to RON 1,760 in February 2016. Due to the prohibitive price of the RCA, the insurance level of the national fleet falls to almost 70%, a situation caused in particular by the high cost of the RCA. Romania risks at any time the EU infringement, huge fines for the Romanian state to be paid by all citizens through taxes,” the release reads.

According to ASSAI, the RCA has experienced, in 2016, the largest price increase (24%) of all products sold in Romania last year, also being compulsory.

In addition, the representatives of independent auto service companies argue that although the Miliman report was aimed to X-ray the insurance market, ASF refuses for more than three months to make it public.

“This survey was paid with public money, but it was never made public. This study refutes the statements of all insurers and of ASF about the real situation on the insurance market in Romania, whereby the RCA insurers claim that, for every RON 100 collected, they bare costs of RON 130,” the ASSAI representatives say.

 

ASFASSAIcarrierscompulsory insurance policyEuropean Unionfinancial supervisory authorityMiliman reportprice increaseRCAtransporters
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