​The government on Wednesday will approve the RCA price cap for 6 months at the end of February 2023, with one condition: during this period, the ASF and the Competition Council will prepare the necessary changes to the RCA law. In order to avoid future crises and bankruptcy, said Prime Minister Nikolae Chuke.

Prime Minister Nicolae Chuke also explained why the approval of this draft GD was delayed last week.

• “We postponed this decision last week at the cabinet meeting because we felt the need to continue the dialogue and get more data and information about how this decision will have an effect.
• At the same time, we held meetings and conditioned this DG on the development of legislative changes within 6 months, which would ensure the avoidance of such misdemeanors.
• This is the third insurance company that has gone bankrupt. I believe that it is completely unacceptable to continue to play with these imbalances created by one company or another, so the ASF, together with the Competition Council and other insurance market participants, must have an honest and very clear dialogue about the legislative changes that need to be made.
• I assure you that I will not accept that within 6 months this assumption will not be fulfilled,” Chuke said.

Christian Rochu, Vice President of ASF: Probably at the end of April or beginning of May, we will certainly present the new formula of the RCA law

Present at the government meeting, Christian Rosu, vice-president of the Financial Supervisory Authority (ASF), which contributed to the bankruptcy of City Insurance and now Euroins, presented the main news of GD’s RCA price cap project.

• “These proposed rates will be as at the end of February 2023. The distribution fee will also be capped at 8% of the net premium, and all insurers will calculate and offer these rates at B0, which means the original base of any calculation that will later be bonused or misapplied based on each driver’s claims history in previous years .
• This would also apply to BAAR, an issue on which everyone agreed. Everyone agreed with this formula,” Christian Rosu said on Wednesday.

The ASF Vice President said that the legal essence of the changes proposed by this draft GD is the law on the Competition Council, which allows us to make these adjustments to the market.

• “In the coming months, probably in late April or early May, there will certainly be a new formulation of the RCA law that will eliminate all the dysfunctions that have led to so many syncopes and the elements that have created the crises we are witnessing today.” – noted the vice-president of ASF.

It is updated

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