Update: Gov’t freezes RCA tariffs, transporters to stage protests on Thursday

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The government has approved on Wednesday an emergency ordinance to freeze the motor third party liability insurance (RCA) tariffs for six months at the amount of loss ratio, Gov’t spokesman Liviu Iolu has announced. The provisions of the ordinance were to be made public Wednesday evening in order to be consulted by the transporters employers’ associations.

“The ordinance was approved by the government. It is to be released this evening. It could be seen by the employers’ associations in doubt. The ordinance could be read by the transporters this evening,” Iolu said during a press briefing at Victoria Palace.

The employers’ associations claim the protests on Thursday will be carried out as scheduled. UNTRR, FORT, APULUM and APTE 2002 have announced on Wednesday they would not give up protests if the government does not mention in the emergency ordinance the RCA levels to be frozen at, realitatea.net reports.

PM Dacian Ciolos has announced on Wednesday, at the beginning of the government sitting, that the draft emergency ordinance regarding the RCA level was to be discussed.  Ciolos added that within a 30-day interval the Supervisory Authority (ASF) would submit a calculation about the average costs for various insurance categories and that level would become the reference price for the next six months. The tariffs will be frozen at this level. “During these six months we should have a system to monitor the prices, with calculations regarding the reference price to be made public and to represent a reference issue in insurance and also for the customers,” PM Ciolos said.

The transporters condition the protest postponement scheduled on September 15 on the emergency ordinance regarding the RCA.

“If the emergency ordinance is issued we will discuss and release a communiqué regarding our intentions. We are talking about the RCA level freezing. We can’t say anything about the protests on Thursday, but we could postpone them. Overall, we’ve gained a plus for the citizens and for the transporters,” Vasile Stefanescu, the leader of Authorized Transporters Confederation (COTAR) said.

“We’ll carry out an analysis to see if our members are satisfied with the outcome, in order to decide upon the protests on Thursday,” said in turn FORT leader Augustin Hagiu.

A decision on the protests is thus expected on Wednesday after 18.00h.

“Currently we are not going to cancel the protests,” Hagiu added.

He said that this step ahead should be followed by convincing the parliament that the issue of emergency ordinance for six months must be extended indefinitely.

The employers’ associations maintain their request for the Financial Supervisory Authority (ASF) president Misu Negritoiu’s resignation.

On Tuesday, the Senate adopted Tuesday the RCA law proposal and after two weeks is going to get the Chamber of Deputies’ vote.

The entry on the RCA market of a state-controlled insurer and the introduction of a reference price calculated at half-year by ASF are the main amendments to the law.

The employers’ associations – UNTRR, APTE 2002, FORT, ARTRI, APULUM – requested the government to issue an emergency ordinance in order to freeze the MTPL tariffs at the average level of the Milliman report.

On September 15, 2016, the road transporters will organize a national protest against the motor third party liability insurance tariffs.

 

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