City Insurance bankrupt: Over 1,000 Romanians to get compensation of over RON 2.3 M on Monday
The City Insurance victims start on Monday to receive the amounts requested based on the damage files opened against this insurer that went bankrupt. It is about 2.3 million lei for 1,003 payment requests. Until November 26, 2021, the Insured Guarantee Fund (FGA) received 68,931 payment requests as well as 35,687 applications for opening files.
According to the data released by the Financial Supervisory Authority (ASF), out of the total number of payment requests received by FGA, 5,556 requests were sent by BAAR, 5,705 represent regression requests received from insurers, while the remaining 57,670 payment requests were was transmitted by various other creditors.
The Insured Guarantee Fund (FGA) announced on Friday that the deadline for the first payments of indemnities is fulfilled on Monday, November 29, given that, according to the legal provisions, the right of insurance creditors to request payment of amounts due from the Fund was born at the date of publication in the Official Gazette of the ASF decision by which the operation authorization of City Insurance was withdrawn, respectively 27.09.2021.
The payment of compensations is made within the limit of 500,000 lei for each insurance claim due under an insurance contract concluded with the insurer in insolvency, according to the guarantee ceiling regulated by Law no. 213/2015 updated.
The victims and customers of City Insurance, the former RCA leader who went bankrupt, have sent 56,900 payment requests so far worth approximately 530 million lei, according to the Financial Supervision Authority (ASF). The amount is close to the total FGA resources, but the Fund may increase its availability.