The approximately 2.8 million Romanians who have RCA car insurance valid in Euroins, as well as the injured parties of the RCA leader, whom the ASF has decided to file for bankruptcy, will be able to immediately claim reimbursement of premiums and payment of losses from the Guarantee Fund of the Insured (FGA), after publication of the ASF decision in the Official Gazette. However, payments can be made within 500,000 lei per insurance contract.

According to HotNews.ro, Euroins Romania had 2.76 million active RCA policies at the end of January 2023.

What to do if you have become a customer or victim of Euroins

The first legal step following the statement made by the ASF on Friday is the publication of the supervisory body’s decision in the Official Gazette.

Immediately thereafter, all Euroins customers and injured parties will have a 60-day period during which the Policyholders’ Guarantee Fund (FGA) can make payments to customers (who want a refund of the balance of the RCA premium already paid) or an indemnification of the company’s RCA losses, up to a limit of 500,000 lei for an insurance contract.

All Romanians with valid policies in Euroins have two options:

• 1. they can keep their insurance until it expires or
• 2. can denounce them and conclude contracts with the insurer without problems.

But the injured parties who were hit in an accident by a car insured by Euroins will suffer the most, because many services will no longer repair these policies and all compensation from this insurer will be paid only after the court finally declares it bankrupt. .

The policy of RCA “Euroins” will be valid until the court makes a decision on the opening of the bankruptcy procedure of “Euroins”. Following this court ruling, the immediate effect is that within 90 days all Euroins policies will cease to exist.

Guide for Euroins policyholders and claimants:

In the case of City Insurance’s bankruptcy, the FGA has put together a guide with everything you need to know whether you are a customer or an injured party, which is also valid in the Euroins situation as follows:

• a) If you have an insurance policy issued by CITY Insurance

Your insurance policy remains valid and has its consequences.

However, you can cancel the policy at any time and take out a new one with another authorized insurer. If you cancel the policy and you have had no claims during the period of validity prior to the cancellation, for the period that has not ended, you are entitled to recover the difference in premium from the FGA – Insured Person’s Guarantee Fund in accordance with the procedure set out in clause b) (ii) Below .

CAREFULLY! Your insurance policy remains valid, in accordance with the provisions of the law, no later than 90 days after the final decision to open bankruptcy proceedings. This means that if the validity period of the policy entered in the insurance document exceeds the previously specified period, you will no longer be insured.

The above specifications are also valid for the situation where you have an RCA insurance policy issued by Euroins. This way, you can drive on public roads and in the event of a road traffic inspection by the authorities you will not be subject to sanctions, your RCA policy is still valid. In short, you’re still covered, of course, given the caveats above.

In addition, if you are at fault for causing a traffic accident that resulted in material damage and/or bodily injury, the injured third party will receive compensation under this policy within the limits established by Law 213/2015 on the Insured’s Guarantee Fund, respectively 450,000 lei and by registering in the credit table in the bankruptcy procedure, which will be decided in the first instance by the Court of Bucharest, and at the stage of appeal by the Court of Appeal of Bucharest.

• b) If you are the victim of a traffic accident caused by a driver in a vehicle insured under an RCA policy issued by Euroins:

(and) If you have not yet accepted a claim with Euroins, you have the right to do so by applying to the Policyholders’ Guarantee Fund no later than the date of termination of the RCA policy by the policyholder, but no later than 90 days from the date. on issuing a decision to open bankruptcy proceedings;

(ii) To receive allowances/compensations, you will be able to submit a reasoned request for payment together with supporting documents, starting from the date of publication of the ASF decision to withdraw the Euroins authorization in the Official Gazette and up to a maximum of 90 days from the date of final suspension of the decision to open bankruptcy proceedings or from on the date of the right of claim, if it arose later.

FGA has the right to start payment of debts to insurance creditors (insurers, beneficiaries, injured parties) from the date of the final decision on the opening of the Euroins bankruptcy proceedings.

These proposed provisions are intended to provide additional protection against losses in the event of an insurer’s insolvency.

(iii) Regardless of whether you applied to the FGA for compensation, you have the right to apply for recognition of the claim (presumed compensation) within the bankruptcy procedure within the prescribed time limits and under the instructions of the receiver to be appointed by the Bucharest Court. You should be aware that to the extent you have received funds from the FGA, they will be deducted during the bankruptcy proceedings from the amounts you may receive.

Contextual information

Romania is one of the countries of the European Union that uses a security system for policyholders in case of bankruptcy of an insurance company: FGA – Insurance Guarantee Fund.

The fund, as a guarantee solution in the field of insurance, aims to protect insurance creditors from the consequences of the insolvency of an insurer that is in bankruptcy proceedings.

The main purpose of the sums available to the FGA is to pay to insurance creditors indemnities/compensations arising from contracts of optional and compulsory insurance concluded in accordance with the terms of the law and premiums payable by the insurer for the period in which the risk was not covered by it as a result of termination of insurance contracts in accordance with the guarantee limit provided by law.”

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