Insurance consultants claim law on compulsory motor third party liability is anti-competitive

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The National Union of Intermediation Societies and Insurance Consultants in Romania (UNSICAR) will notify the European Commission if the compulsory third party car liability bill (RCA) is promulgated because it considers its provisions to be anti-competitive.

“We believe that the new law is a continuation of non-competitive regulations which, over the medium and long term, will have an adverse effect on the legislator’s intentions. The oligopolistic conditions of the RCA market will increase, which means that we will have a low quality of services and, as a consequence, those who will suffer will be those who have to be compensated as a result of a road event. The new law is an organic one, which should regulate in a balanced way over medium and long term all categories of actors involved on the RCA market. Unfortunately, this law regulates, over short term, a punctual problem in favour of a very narrow segment of customers with a very high injury rate, and deprives most of the RCA clients, mainly natural persons,” UNSICAR chairman Bogdan Andriescu said on Monday.

UNSICAR was set up in 2000, represents 80 companies – insurance brokerage, damage adjustment, professional training. UNSICAR is a full member of BIPAR (Bureau International des Producteurs d’Assurances et de Reassurances), an international organization established in 1937, which brings together national professional associations of insurance intermediaries as well as POIs (Partners of Intermediaries).

The Chamber of Deputies adopted 226 votes for, 25 against and four abstentions last week, the draft law on compulsory motor third party liability insurance for road and tramway accidents.

 

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