Only 55 pc of MTPL claim files are paid within the 10 day- statutory period

54.70 percent of the MTPL claim files in the first half of 2016, namely 45,643, were paid within the 10 day- term, the legal deadline, the Financial Supervisory Authority (ASF) analysis reads, quoted by a press release.

Thus, during January – June 2016, insurance companies approved a number of 135,709 claim files for the mandatory MTPL policies, increasing by 16.40 percent compared to the second half of 2015. Among them, 82.35 percent resulted in payments to insurers, 16.34 percent were unpaid files until the reporting date and payment was rejected for 1.60 percent of the total files.

Of the total number of claim files approved, in the first half of last year, 86.63 percent were opened for material damages, 2.61 percent were opened for bodily injuries and 10.76 percent were opened for regress actions.

Four insurance companies totaled 74.89 percent of the total number of MTPL claim files approved, namely: Euroins S.A. (23.58 percent), Carpatica Asig S.A. (20.02 percent), Asirom VIG S.A. (17.07 percent) and City Insurance S.A. (14.23 percent).

In terms of compliance by insurance companies with the legal deadline for payment and settlement established under MTPL rules, from the analysis of MTPL claim files approved for material damages, which fulfilled the conditions to grant compensation, two indicators can be highlighted that show the period of time in which insurers pay compensations to damaged persons and, respectively, settle the cases: the average duration of payment of claim files and the average duration of settlement of claim files.

Data reported by insurance companies indicate that, in the first six months of last year, the average duration of payment of MTPL claim files approved for material damages was 25.38 days/file (the analysis of this indicator was made without the data related to claim files approved and paid by Carpatica Asig S.A.).

Omniasig VIG S.A. recorded the lowest average duration of payment of claim files, i.e. 3.15 days/file, with a rate of 98.49 percent of files paid within the legal deadline, while City Insurance S.A. and Asirom VIG S.A. have the highest rates of files paid after the legal deadline (84.27 percent and, respectively, 71.07 percent). ASF has conducted a number of inspections on this issue in 2016 at both City Insurance S.A. and Asirom S.A., has applied sanctions and ordered remedy measures which are permanently monitored and whose effects will be seen in 2017.

ASF analysis shows that the average duration for the settlement of MTPL claim files approved for material damages in H1 of 2016 was 60.07 days/file, down 6.69 percent compared to levels recorded in H2 of the previous year. Almost 80 percent of the files were settled within the legal deadline.

Uniqa Asigurari S.A. recorded the lowest average duration of file settlement (27.95 days/file), and City Insurance S.A. recorded the highest average duration of claim files settlement (117.25 days/file), a rate of 63.66 percent of files paid being handled within a period of more than 3 months.