2023-09-27 21:27:28
On Thursday, the government discusses the draft decision that proposes in the first reading the extension of the RCA price cap until December 31, 2023. The measure, proposed by the Financial Supervisory Authority (ASF), led by Nicu Marcu, aims to eliminate the potential negative impact of price increases.
RCA insuranceFoto: Everydayplus / Dreamstime.com
The measure is motivated by the fear of increasing RCA prices
The reasons for this proposal are also mentioned in the supporting note of the draft government decision:
- “The normative act proposes the extension until December 31, 2023 of the period of applicability of the provisions established by Government Decision no. 298/2023 regarding the establishment of maximum premium rates and other applicable measures by insurance companies that practice compulsory motor civil liability insurance for damages caused to third parties through vehicle and tram accidents.
- The normative act ensures the possibility of complying with the legal obligations resulting from the conclusion of RCA contracts on the basis of which compensations are granted to third parties as a result of such accidents.
- Applying this measure eliminates the potential negative impact of price increases, a crisis situation generated by a major imbalance between demand and supply, an obvious market dysfunction, as stipulated in art. 4 para. (3) from the Competition Law no. 21/1996, republished.”, it is shown in the document.
Initially, ASF considered capping RCA prices until January 10, 2024
The ASF initially wanted to propose to the Government the extension of the RCA price cap for another 3 months, until January 10, 2024, the reason given being that all the RCA policies of Euroins, the bankrupt insurer, would expire, as they declared last month in the premiere for HotNews. ro several sources from both government and the insurance industry.
We remind you that, in the context of the Euroins bankruptcy, the Ciucă Government decided to cap RCA prices, at the level of basic prices (B0) practiced by insurers on February 28, 2023, to which the price reduction or increase related to the bonus-malus class is applied where each insured is located.
Prices have been frozen since April 11, 2023, for 6 months, which would expire on October 10, 2023.
The government also extended the validity of Euroins’ RCA policies
The government decided at the end of last month to extend the validity of the RCA insurances issued by Euroins for another 3 months, until December 8 (inclusive), given that almost 1.7 million drivers still had RCA insured cars with this insurer entered into bankruptcy.
How hard it is for drivers who denounce Euroins RCA policies to get their money
One of the reasons why drivers did not rush to report RCA policies to Euroins is that it takes a long time to refund the difference in premium for the period left uncovered, and the data provided by the Insured Fund (FGA) confirms this. The FGA has so far paid less than 15% of refund claims made by Euroins policyholders.
Furthermore, before canceling the policy Euroins would have to take out new RCA insurance with another insurer, and the price would certainly be higher considering the low and financially unsustainable rates charged by Euroins before bankruptcy.
In addition, tens of thousands of drivers who had their RCA cars insured with City Insurance, the insurer that went bankrupt last year, have been waiting for more than a year for the Insured Guarantee Fund (FGA) to pay them the difference in money for the period left uncovered, following they canceled their RCA insurance before it expired, according to official data obtained by HotNews.ro.
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