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Bucharest
April 16, 2021
ECONOMY TRANSPORTS

Dissatisfied by RCA insurance rates, transporters protest in Victoria Square, between 9:00 and 15:00 hrs

The road transporters who are dissatisfied with the growth of RCA insurance rates will protest on Thursday, in Victoria Square, between 9:00 and 15:00 hrs, and they will be taking out into the street over 5,000 vehicles, the representatives of the employers’ associations in this sector announced.

The protest will take place in other 20 cities in the country, with a total number of 100,000 vehicles.

The employers’ associations of the road transport – UNTRR, FORT, APULUM, APTE 2002 – requested the Romanian Government to freeze the RCA insurance rates, to the average values of the damages recorded by the Financial Supervisory Authority (ASF) and not to the level of those that will be calculated in the future, and to specify this measure in the content of the Emergency Ordinance.

The Government approved on Wednesday, through an Emergency Ordinance, capping the RCA insurance rates for a period of 6 months, to a level that will be decided by the Financial Supervisory Authority. The ordinance will allow ASF to establish, on a period of six months, a RCA insurance rate that can be applied both to individuals and companies.

“This Ordinance was enacted taking into account the exceptional circumstances manifested through the major unbalance between request and offer, respectively the obvious dysfunctionality of the Romanian mandatory vehicle insurance market. Therefore, the Government together with the Competition Council considered necessary to instate a control mechanism of Romanian mandatory vehicle insurance markets, manifested in the first phase through the establishment of some caps on the RCA insurance premiums by the ASF,” a release of the Executive points out.

 

RCA mandatory motor vehicle liability insurance capped by Gov’t at level decided by Supervisory body

 

The government endorsed on Wednesday through a Government Emergency Ordinance (GEO) the legal framework to resolve the issues signaled out on the RCA mandatory motor vehicle liability insurance market.

According to a government release sent to AGERPRES, the GEO allows the Financial Supervisory Authority (ASF) to set a six-month RCA reference price applied both to individuals and companies.

“This GEO is adopted considering the exceptional circumstances that have irrupted into a major imbalance between offer and demand, namely the obvious failure of the motor vehicle liability insurance market in Romania. So, the Romanian Government together with the Competition Council have found it necessary to establish a control mechanism of the mandatory motor vehicle liability insurance market in Romania, manifested in a first stage through the ASF setting of rates by capping premiums related to the RCA,” says the release.

In his turn, Prime Minister Dacian Ciolos says that by this GEO the government wishes to ensure ‘the clearly defined legal framework for this issue to be resolved by the ASF which has this responsibility.’

The release also reads that the GEO takes into account the European relevant regulations, the experience of other Member States regarding this kind of insurance’s regulation, as well as the propositions lodged by the professional, employers’ associations of the car insurers and transporters.

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