​RCA maximum prices will be set by each insurer at the level of their own premium rates applicable on March 1, 2022, and in a situation where these rates are higher than those applied on March 1, 2023, RCA insurers will apply the lower of the two premium rates, according to the draft GD, sent to the government and received by HotNews.ro.

The draft obtained by HotNes.ro shows that the distribution commission related to RCA contracts is limited to a maximum of 8% of the gross premium collected within 6 months from the date of entry into force of this decision.

Another provision is aimed at covering the costs of temporarily replacing a damaged car.

Below we reproduce in full GD’s draft of maximum RCA prices over the next 6 months:

Article 1. – (1) This decision establishes the maximum premium rates for compulsory civil liability insurance of vehicle owners for damages caused to third parties as a result of road accidents of vehicles and trams, hereinafter referred to as RCA insurance, applied by insurance companies insured provides RCA insurance, hereinafter referred to as RCA insurers, in accordance with Art. 4 para. (3) from the Law on Competition No. 21/1996, reissued with further changes and additions.

(2) The maximum premium rates provided for in para. (1) are set at the level of own premium rates that were applied by each RCA insurer on March 1, 2022 and are valid for 6 months from the date of entry into force of this decision.

(3) As an exception to the provisions of par. (2), in a situation where the premium rates charged by RCA insurers on 1 March 2022 are higher than those charged on 1 March 2023, RCA insurers shall apply the lower of the two premium rates.

(4) RCA insurers apply the maximum premium rates provided for in para. (2) or (3) starting from the effective date of this decision.

(5) The maximum premium rates shall apply in the case of RCA contracts entered into after the date of entry into force of this decision.

(6) The distribution commission related to RCA contracts is limited to a maximum of 8% of the gross premium collected within 6 months from the effective date of this decision.

(7) Supervision of the practice of maximum premium rates by RCA insurers established in accordance with the provisions of this decision is carried out by the Financial Supervisory Authority, hereinafter referred to as the ASF

Article 2. – Maximum premium rates are set for bonus/malus class B0; depending on the policyholder’s claim history, RCA insurers apply the bonus/malus class to which it falls, in accordance with legal provisions.

Article 3 – (1) When applying the provisions of this decision to compensations provided by RCA insurers, based on the contracts provided for in Art. 1 paragraph (5), in order to cover the costs of temporarily replacing the damaged vehicle with a vehicle of the same class or a lower class, the compensation calculation takes into account a rate that cannot exceed the average rental rate published by the Vehicle Insurance Bureau in Romania.

(2) Compensation provided for in para. (1) is provided only in a situation where the damaged vehicle can no longer be used from a technical point of view.

(3) The maximum period during which the compensation provided for in para. (1) and (2) is 30 days from the date of issue of the Repair Permit by the Police or the Entry into Repair Document issued by the RCA Insurer, as the case may be.

(4) As an exception to the provisions of par. (3), the maximum period may be extended only with the prior consent of the RCA insurer.

(5) In the case of vehicles that are no longer repairable and subject to total economic damage, the compensation provided for in par. (1) and (2) cover the period between the date of discovery of the loss and the date of submission of the offer of compensation; at the same time, the amount of compensation cannot exceed 25% of the market value of the damaged vehicle.

Article 4. – (1) Exceeding the level of the maximum premium rates established in accordance with this decision and the practice of distribution commissions at a level higher than provided for in Art. 1 paragraph (6) by RCA insurers is a violation and is punishable by a fine of 1,000 to 50,000 lei.

(2) In addition to the main punishment provided for in par. (1), depending on the seriousness of the act, the ASF Council may also apply additional sanctions for offenses provided for in Art. 5 para. (3) lit. b) and f) from Government Resolution no. 2/2001 regarding the legal regime of offenses approved with amendments and additions by Law no. 180/2002 as amended.

(3) Violations are established by persons with oversight and control powers within the ASF, and sanctions for violations are enforced by the ASF Board; fines are paid to the state budget.

(4) Provisions of Government Order No. 2/2001, approved with amendments and additions by Law No. 180/2002 with further amendments and additions.