Insurers and brokers will no longer pay certain taxes to the Financial Conduct Authority (ASF) on proceeds from the sale of compulsory RCA car insurance until the end of this year, according to a draft released for consultation by the body. The move comes after the government, at the suggestion of the ASF, extended the RCA price ceiling in the context of the Euroins bankruptcy.

• SEE THE ASF PROJECT HERE

In particular, insurers will no longer temporarily hand over to the ASF the quota for the supervision and control of the compulsory civil liability insurance of vehicle owners for damages caused to third parties as a result of road accidents (traffic accidents).

• This is a share of 1% of gross premiums collected from RCA’s insurance activities, as well as a share of 1% of gross premiums collected from RCA’s insurance activities related to insurers’ branches in third countries.

Brokers will no longer remit to the ASF an operating or distribution commission for the insurance contracts they distribute related to the civil liability insurance of vehicle owners for the use of land vehicles, including the liability of the carrier.

• In this case, the rate of 0.1% is applied to income from distribution activities.

For insurers, the measure regulated by the draft normative act applies to contracts of mandatory RSA insurance concluded between November 15 and December 31, 2023.

As for the main intermediaries, the measure regulated by the project applies to the IV quarter of 2023 regarding the insurance contracts distributed by them, related to the insurance of the civil liability of the owners of vehicles, the use of land vehicles, including the liability of the carrier.

The project will be on public discussion for 10 days.

Ministry of Finance: Around 1.5 million cars still have RCA in Euroins / Bolosh: It was vital to protect consumers

Finance Minister Marcel Bolosh warned on Thursday, October 5, of the dangers that would exist in road traffic if the government did not decide to extend the RCA price cap for 3 months, until December 31, 2023. In a context where hundreds of thousands of motorists are left without policies at the end of the year, it was vital to protect consumers and make car insurance affordable,” he said.

• SEE THE DECISION PUBLISHED IN THE OFFICIAL GAZETTE

At a meeting on Thursday, October 5, 2023, the government adopted a regulation on the extension for 3 months, until December 31, 2023, of the period of application of the maximum RCA insurance premiums practiced by insurers on February 28, 2023.