Damages of at least EUR 40 M, following Astra bankruptcy

The bankruptcy of Astra Asigurări insurance company will cost the Romanian Motor Insurers’ Bureau (BAAR) – the association of insurance companies that practice MTPL (RCA)- at least EUR 40 million, Ovidiu Vadean, president of BAAR stated on Wednesday in a press conference.

After the Financial Supervising Authority (ASF) decision from August 2015 to withdraw Astra’s operating authorization, BAAR began to receive as of September 1, 2015, all confirmation of damages which before arrived to Astra, for the Green Card international insurances, and the pertaining claims issued in the name of its former member – Astra Asigurari.

During September 1, 2015 – April 30, 2016, 4,567 claim files were approved and 3,537 claims for reimbursement were received, worth EUR 13.82 million.

2,242 requests have been paid so far, with a total of EUR 9.595 million from the Green Card Common Fund, Vadean added.

For Astra bankruptcy case, BAAR has signed a reinsurance contract, excess of loss type with own retention of EUR 500,000, placed by Swiss Re, as leader of a consortium of reinsurers. The contract validates the Astra Asigurari Green Card policies available between August 28, 2015 – August 27, 2016.

Green Card international insurance system was created in 1949 in order to facilitate the movement of vehicles outside the country and involves national associations of MTPL (RCA) insurers, as BAAR in Romania’s case.