Government approved on Wednesday the GD on capping the compulsory insurance policies (RCA) rates for six-month period, as a press release informs. The lowest RCA policy will be RON 541 per year and the largest – RON 3,087, according to the maximum tariffs grid.
Young people owning high horsepower cars will pay most for RCA insurance policies and 60 yo persons, driving cars with engine capacity between 1.2 and 1.4 liters, the lowest rates. Thus, a driver aged up to 25 years will pay RON 3,087 per insurance per year. It’s the highest level of an insurance premium.
The new maximum tariffs for compulsory motor insurance could come into force as of November 15.
Insurers’ IT systems are 80 percent adapted to new legislative requirements. The insurer will not cover light damages only if the insured expressly requests this when concluding the policy and accidents’ coverage as well as roadside assistance system are granted only to policies on 6 and 12 months.
Bonus-Malus System (BMS) does not apply on the insurances concluded for up to five-month period, whether or not the policy had damages.
The maximum RCA premium tariffs were determined based on the methodology adopted by ASF Board on 5 October, following a public consultation process, and calculations are in line with both the provisions of GEO 54/2016 and the actuarial practices generally accepted in the insurance industry.
The calculation formula includes the claim frequency, the average claim, claims incurred but not reported (IBNR), claims inflation and the safety charge, which determine the risk premium, plus the acquisition and administration expenses, fixed and variable, as well as the Bonus/Malus charge (15 percent) and the profit share (1 percent).