Drivers insured by RCA at Euroins have so far sent only 63,000 requests to cancel their car insurance policies, representatives of CITR, the judicial liquidator of the bankrupt former RCA leader, told HotNews.ro. Given that one in four RCA-insured cars has a Euroins policy that automatically expires on 8 September, the ASF has proposed a 3-month extension to the Government.

Valentin Ionescu, director general for insurance at the Financial Supervisory Authority (ASF), recently told Euronews Romania that the body has proposed to the government to extend the validity of insurance policies issued by Euroins.

• “Taking into account the development of events in the insurance market and with the aim of protecting consumers, ASF proposed to extend the validity period of the policies. So, if this proposal that we submitted to the Government, the draft emergency resolution, is accepted, sometime in early December there will be cancellation of RKA policies,” he said.

The reason is the large number of RCA policies that will remain in force because few drivers have surrendered their Euroins issued policies.

• “After the analysis, after the exchange of information that we had with the Guarantee Fund, seeing that there are not many denunciations and that, however, many policies remain in force, we came after the analysis that we did – internally, we came up with this proposal to continue denunciation of policies instead of September 8, let’s do it on December 8,” said the ASF representative.

CITR, the judicial liquidator of Euroins: So far we have received only 63,000 requests to denounce the RCA policy

As of 17 March 2023, Euroins had 2.8 million RCA policies in force when the ASF declared it insolvent and withdrew its licence.

ASF sources recently told HotNews.ro that “on July 19, 2023, more than 1.8 million RCA policies issued by Euroins were valid, corresponding to 25% of the total number of more than 7.2 million RCA policies, according to data provided to the ASF Bureau of Automobile Insurers (BAAR)”.

• Every fourth car has RCA insurance in Euroins and risks losing it. How ASF wants to give drivers time to sign new contracts

According to the law, the policies are still valid until September 8 inclusive, from which date these contracts will automatically expire, so the drivers in question should take out another RCA insurance in time.

To do this, he must cancel the RCA policy even at Euroins, which has now been taken over by CITR, the judicial liquidator, and then apply for the refund of the remaining contract premium to the Insurance Fund (FGA).

How many drivers applied to Euroins with a request to cancel RCA policies?

• “Approximately 63,000 applications were received. Premium returns are requested from and paid for by FGA. Only this institution can give you the number of people who have received a premium refund,” Paul Dieter Cirlenaru, CEO of CITR, told HotNews.ro.

There were also technical issues with the single email address to which rules are notified. What CITR says

In addition to people not rushing to change RCA insurance that is still in force, there have also been technical issues with the single email address for cancellation requests for Euroins policies.

• “There were technical problems with the address [email protected], which were resolved in a short time. We will monitor the situation in real-time to ensure the optimal functioning of the Euroins server,” said a CITR representative.

What to do if you want to cancel your RCA policy from Euroins

Regarding the termination of the policies, the head of CITR clarified what steps are currently being taken:

• 1. Termination takes place, in accordance with the Civil Code, within 20 days from the day when the person concerned sends a request for termination to the address [email protected].
• 2. Individuals requesting termination receive confirmation when the request is resolved, but it is possible that due to the high volume of requests, they will not be resolved in time.
  However, in fact, the denunciation takes place within the 20-day period established by law. Therefore, individuals who have submitted a cancellation request must have a new insurance policy valid after the 20-day period.
• 3. The next step for those who have submitted a termination request is to formulate a payment request for a refund of the FGA premium or register at the cred desk to receive a refund of the premium.

SEE – CITR GUIDE FOR EUROINS CREDITORS

How much money has the FGA paid into the Euroins account: 44,263 refund requests paid for the first time

While CITR says it has received only 63,000 requests to cancel contracts, the Insurance Guarantee Fund recently announced it had paid out even fewer of them, suggesting there are delays there too.

“For the Euroins company, whose payments began on May 17, 2023, 7,591 payment claims were paid by July 31, 2023, the payments made amounted to approx. 27.2 million lei.

By July 31, 2023, 109,577 payment claims were registered on Euroins.

Of the total number of appeals registered by Euroins, more than half are requests for compensation of damages, respectively:

• 65.314 Payment requests for reimbursements/compensations – Appendix 10
• 44,263 premium refund applications – Appendix 9,” the FGA said.

Major RCA bankruptcies: €200m paid out for less than half of claims by injured parties. City Insurance / ASF salaries have increased

Earlier, HotNews.ro wrote that almost two years after the revocation of the authorization of the former leader of the RCA, City Insurance, the Insurance Fund (FGA) paid out approximately 200 million euros for less than half of the claims of the injured parties.

Meanwhile, another RCA leader, Euroins, which already has more than 100,000 payment requests, has gone bankrupt under the same leadership of ASF, which was paid thousands of euros per month to monitor the market.

Last year, the salaries of the management of ASF increased

Heard in parliament after RCA’s two major bankruptcies, members of ASF’s management defended themselves, claiming that they had applied historic fines to Euroins of 16 million lei over 3 years, that data had been hidden from them in the control process, and that they had filed claims of criminal wrongdoing.

On the other hand, even in the decision to withdraw from the activity, ASF emphasized that Euroins collects 8 million per day from RCA.

The management of the ASF was also summoned to the government for an explanation, given that in order to stabilize the RCA market, the executive body led by Nicolae Chuke decided on Wednesday to limit RCA prices.

And it all stopped there.

Meanwhile, the ASF management has published its property declarations for the past year, and revenues are significantly higher than in 2021, Economedia.ro reports.

• Niku Marku, President of ASF, received a salary of 989,925 lei in 2022 for this position, which is an increase from 748,324 lei in 2021 and an increase from 391,563 lei in 2020. He also accumulated an income of 28,533 lei from the Academy of Economic Studies. Financial assets from the current account in the amount of 117,852 lei are added to the salary from the ASF.
• Elena Doina Daskalu, the first vice-president of ASF, declared revenues of 829,138 lei in 2022, an increase compared to 2021 (713,489 lei)
• Christian Rochu, Vice President of Insurance, declared a salary of 761,259 lei last year, which is more than in 2021 (658,079 lei)
• Gabriel Gradinescu, the vice president, declared a salary of 746,374 lei in 2022 against 665,260 lei in 2021.
• Stefan Daniel Armenianu, the vice president, declared a salary of 760,486 lei in 2022 against 656,775 lei in 2021.

Non-executive members of the board of directors, respectively Jozef Birtalan, Ioan Gheorghe Shara, Aura Gabriela Sokol, Ovidiu Rezvan Vlassopol, received 422,700 lei, 419,174 lei and 422,958 lei, respectively.

• Read also: ‘I don’t want to comment, it seems a bit biased’: ASF chief asked about honorable retirement and performance bonuses after City and Euroins bankruptcies

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