The Minister of Finance, Marcel Boloş, announced on Thursday evening that the validity of the policies concluded by insurers in insolvency proceedings was extended by 90 days, in order to protect 17% of the national car fleet. According to him, the measure is necessary to ensure the protection of contractors and insurance beneficiaries.
“Following the opening of the bankruptcy procedure of an insurance company with an effect on approximately 1.7 million RCA contracts, the Ministry of Finance today promoted a GEO to regulate the extension by 90 days of the term of termination of insurance/reinsurance policies”, according to a message posted on the social media page of the institution.
Thus, the term will be 180 days from the date of the pronouncement of the decision to open the bankruptcy procedure.
“In this way, we are preventing a real danger in terms of the decrease in the degree of inclusion in the compulsory RCA insurance of 17% of the national car fleet. Now, we are regulating longer terms in which the insurance contracts of the insurer with a market share will automatically cease raised on the insurance segment, which is in insolvency proceedings at the date of entry into force of this emergency ordinance”, wrote the Minister of Finance, Marcel Boloş, on the social media page.
The Government decided, on Thursday, to extend by 90 days, until December 8, the terms of RCA insurance contracts concluded by insurers in insolvency proceedings, announced the spokesman of the Executive, Mihai Constantin.
“I must also mention the extension, by means of an emergency ordinance, approved by the Government today, of the terms in which the insurance contracts concluded with the insurer with a high market share in the RCA insurance segment and in insolvency proceedings cease by law. Thus , for the insurance and reinsurance policies concluded by the reinsurance insurance companies in ongoing insolvency proceedings, on the date of entry into force of this emergency ordinance, the legal termination terms of 90 days and 150 days, respectively, provided by law, they are extended by 90 days”, stated Mihai Constantin.
He mentioned that “the measure is necessary to ensure the protection of insurance contractors and beneficiaries, for the stability of the insurance market and to avoid the risk of diminishing the degree of inclusion in the compulsory RCA insurance of vehicles registered on the territory of Romania”.
“Consequently, the new term of validity becomes December 8, 2023”, Constantin also specified.
Since last week, Valentin Ionescu, head of the General Insurance Directorate, Financial Supervisory Authority (ASF), announced that RCA policies can be bought in advance two months after the amendment of Norm 20, and the denunciation of Euroins policies could be extended by 90 days.
He claimed that, if the reporting period is extended until December, the number of policies that would still be valid would decrease by a lot, probably somewhere between 700,000 – 800,000 from 1.5 – 1.6 million policies , number that can be absorbed by the market without major problems, considering that there are only six insurance companies authorized on RCA and two on European passport.
Editor: Andreea Smerea