​Drivers will lose the 50% discount on the RCA price if they do not renew their policy within 30 days of its expiry or if they receive a traffic ticket, including for parking in prohibited areas, and RCA suspension will only be allowed if the car will not park in public access, otherwise a fine will be applied. Here are some of ASF’s proposals to amend the RCA Act, which would require carriers to charge insurers and raise prices.

In addition to the temporary reduction in RCA prices for trucks, the Çolaku government promised to urgently change the RCA law for all insured persons after the protest of the transporters, the draft law was discussed in the Senate.

The Financial Conduct Authority (ASF) has proposed a number of measures which it claims will reduce RCA prices, such as a review of the bonus-malus system, the possibility of RCA contract suspensions and the payment of insurance premiums in installments, but some of the proposals could have the opposite effect, it warned in Monday Confederation of Authorized Operators and Transporters of Romania (COTAR).

Carriers sent the media a list of amendments proposed by the ASF to amend the RCA law (132/2017), warning that some of the proposals would raise prices for policyholders and benefit insurers.

• REVIEW ASF’S PROPOSALS REGARDING CHANGES TO THE RAC LAW

What changes to the “bonus-malus” system will further penalize drivers and increase the price of RCA

One of the ASF’s proposals is to modify the bonus-malus system, which now provides a reduction or increase in the RCA price based on the insured driver’s loss history.

ASF suggests taking into account, in addition to damage history, the following criteria:

• the nature and degree of severity of the damage caused, for which compensation has been paid, respectively moral damage, bodily injury or death;
• driving vehicles while under the influence of alcohol and/or psychoactive substances;
• dishonest provision of unreliable or unwilling information in accordance with the provisions of Law no. 287/2009 on the Civil Code, reissued, with the following changes, during the conclusion of the RCA agreement;
• failure to fulfill the RCA insurance obligation continuously for a period exceeding 30 days;
• violations and sanctions applied by Romanian police officers in relation to vehicle traffic violations, which means inappropriate driving behavior leading to a high risk of accidents;”

In other words, insurers will increase the price of RCA if you are involved in an accident that results in bodily injury or death, or if you receive traffic tickets.

• “In particular, if you managed to get at least 4 years of faultless driving a bonus class 8, which provides a 50% price reduction at RCA, but you do not renew your RCA policy within 30 days of its expiration, you lose the bonus (price reduction of 50 %) that you have accumulated over the years. This also applies to motorcyclists, even though they only ride for a few months of the year, they also have to pay the RCA for the winter months.
• Traffic fines will reduce your bonus accumulated over the past years of accident-free driving: “violations and sanctions applied by Romanian police officers for traffic violations, which mean inappropriate driving behavior leading to a high risk of an accident” are taken into account.
• In this way, insurance companies will have complete freedom to interpret in their favor any wrong behavior of the driver and increase his RCA price, losing the bonus when calculating the RCA price.
• Example: a trivial fine for parking in an illegal space, so common in Bucharest, which the insurance company believes may lead to the risk of accidents, will allow the insurance company to steal your bonus accumulated over years of careful driving,” COTAR warns.

Suspension of the RCA contract – only if the car will not be parked in the public area / Otherwise – a fine

Another ASF proposal concerns the possibility of voluntary suspension of the RCA contract.

• “The policyholder may submit a written request to the RCA insurer for the voluntary suspension of the RCA contract concluded for a period of 6 or 12 months, only during the period provided for in the original RCA contract, and indicate the start and end date of the suspension; the period of suspension shall be at least one month and shall not exceed the period between the date of suspension and the date of termination of the RCA contract (…)
• During the entire period of suspension of the RCA contract, vehicle registration, the insured immobilizes the vehicle in a private space, outside the public domain,” the ASF proposal says.

The Confederation of Motor Carriers notes that the ASF also proposes to treat failure to comply with this obligation as a breach of the RCA’s insurance obligations and punish it as a breach.

• “The policy holder will only be able to suspend the RCA policy for a limited period of time if the vehicle is not parked in public for that period and ASF and the insurance companies will require the RCA policy holder to be parked. is punishable as an offense if he does not keep his vehicle in the yard or garage during this entire period.
• That is, if you don’t have a garage or yard to keep your car for the period you suspend your RCA insurance, ASF and insurance companies will fine you!” says COTAR.

Increasing sanctions for drivers without RCA and the possibility to pay half of the fine in 15 days disappears

Another ASF proposal seeks to increase fines for owners and authorized owners of an uninsured vehicle and for driving on public roads with a vehicle for which the RCA is suspended, namely:

• a) in the case of vehicles classified as passenger cars – 2,000 lei;
• b) for passenger vehicles, including trams – 7,000 lei;
• c) in the case of cargo vehicles: (i) the maximum permitted weight of which does not exceed 3.5 tons – 5,000 lei; (ii) with a permissible maximum weight of more than 3.5 tons and less than or equal to 12 tons – 7,000 lei; (iii) the maximum permitted weight exceeds 12 tons – 15,000 lei;
• d) vehicles, other than those specified in letter a) – c) – 1,000 lei”.

“Although the fines for drivers are increasing significantly, the ASF did not consider it appropriate to increase the fines for insurance companies, at least in a similar way. And more, by way of derogation from Art. 8 para. (2) from Government Resolution no. 2/2001, you will not pay half of the fine for 15 days,” COTAR emphasizes.

The confederation is asking the government and parliament to hold the ASF accountable for these proposed legislative changes that will benefit insurers.

• “We can say that 80% of the current proposals to amend Law 132/2017 will lead to a 30-40% increase in the price of RKA policies.
• What benefit will the insured receive – almost 9 million non-free payers in Law 132/2017?
• All these proposals come from the insurers, and they have been constantly trying to translate them into law with the help of the ASF leadership in recent years. We recognize them because we have seen them before.
• The reduction of bonus classes is their dream to throw us straight into the abyss so that we can no longer claim any bonuses that we have not been given at all for the past 7 years,” said Vasile Stefanescu, President of COTAR.

The measures promised by the Cholak government and the ASF are in full protest by the transporters

The Financial Supervisory Authority (ASF) proposed a series of measures, in full protest from the carriers, the end result of which was a reduction in the RCA. They concern, among other things, the review of the bonus-malus system, the possibility of suspending the RCA contract, as well as the payment of the insurance premium in installments, according to an ASF document seen by HotNews.ro.

• Read: 4 sets of measures proposed by ASF that will reduce RCA

On Friday, January 19, the authorities adopted the first measure to reduce RCA prices, which is aimed exclusively at carriers: the recommended premium for trucks over 16 tons in class B0 (without fines and bonuses) will not exceed 9,000 lei.

Prime Minister Cholaku said it was a stable price, lower than neighboring countries, and he also promised to pay in installments and suspend the policy until the car is driven for a long time, measures that will apply to all RCA policyholders.

• Read: ASF: RCA price for trucks over 16 tons will not exceed 9,000 lei / Ciolacu increases with payment in installments and suspension of the policy until the vehicle is driven