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September 30, 2022

European Commission admits UNSAR complaint over RCA fees capping; Gov’t has 10 weeks to reply

The European Commission admitted the complaint of the National Union of Romania’s Insurers and Reinsurers (UNSAR) regarding the capping of the RCA mandatory liability insurance premium fees; the government has 10 weeks to respond, UNSAR said on Thursday at the request of Agerpres.

“The National Union of Romania’s Insurers and Reinsurers received a letter from the European Commission announcing us that our complaint has been admitted and is being looked into. According to the letter, the government has ten weeks to respond to the EC and afterwards the Commission has another ten weeks to analyze the response,” UNSAR said.

The Union said that they expect national legislation on the RCA not to run counter to European legislation.

“Apart from violating national and European regulations, the capping of RCA fees will have negative effects in the medium and long term that will be felt by the insured too,” UNSAR argues.

UNSAR announced in a release in early November that they notified the European Commission on the capping of RCA fees, which they consider to violate the principle of the free, competitive market set forth in the Romanian Constitution, as well as in a series of European regulations.

“Following the government’s approving the cap on the mandatory liability insurance premium fees, UNSAR affirms its intention to take all the necessary steps to make sure the relevant legislation complies with the European and national regulations in force. Capping the RCA fees violates in the first place the basic principle of the free, competitive market set forth in Romania’s Constitution, and UNSAR members are currently looking at the best ways to act against this provision. UNSAR has already notified the European Commission of the infringement of Directive 2009/138/EC and of the Treaty on the functioning of the European Union, and the premises are in place for Romania to be sanctioned for breach of Community legislation,” the UNSAR release read.

The government adopted on November 2, after one week of public consultation, the maximum fees to be charged by the companies that offer mandatory motor vehicle insurance. The calculation methodology and the maximum fees were established by the Financial Supervisory Authority in consultation with the road haulage associations and the insurers, government spokesman Liviu Iolu told a briefing at the Victoria Palace of Government back then.

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