​RCA insurers will be required to electronically submit new information on approved loss reserves, history of claims or denials or litigation to AIDA’s compulsory motor insurance database, and ASF will have real-time access to all of this. information, shows the act published on Thursday evening in the Official Gazette.

There are no changes that ASF brings to the norm. 20/2017 on car insurance in Romania should change the lives of drivers involved in road accidents for the better, at least when it comes to receiving compensation on time.

• SEE RCA STANDARDS IN THE OFFICIAL BULLETIN HERE

ASF’s new rule requires insurers to submit new information to AIDA’s database, currently managed by the Bureau of Motor Insurers (BAAR), to which ASF does not have full access.

Bet: ASF will know whether RCA insurers have sufficient reserves to meet contractual obligations

The AIDA database currently contains information on RCA insurance contracts concluded for vehicles registered or registered and for those to be registered or registered in Romania, including their validity period, date of termination, termination and suspension of the contract, declared drivers, bonus class -malus, information on direct settlement and information on registered losses and compensation paid under insurance contracts.

What has changed in the AIDA database and why?

• “The project involves restructuring and supplementing the database with a series of data and information on losses approved under RCA contracts, the history of changes to the reserve of approved losses, payments or refusals to pay compensation, this information will be accessible to ASF, analyzed and used as in the process supervision and control carried out by our body, as well as in the implementation of research, analysis and forecasts at the level of the RCA market.
• The purpose of these changes is to guarantee at all times both unrestricted access by the ASF to accurate, correct and unchanging information on the development of each RCA insurer’s approved claims reserve and at the market level, and at the same time, by highlighting a record over time of the changes, entered into this reserve on the date of payment or refusal to pay the claim file for which it was created.”, this is shown in the act of approval according to the ASF norm.

Around 400,000 RCA claims are made each year and some insurers are delaying payments

In the RCA market in Romania, they are opened annually about 400,000 damage filesand insurance companies that have many contracts and do not have sufficient human, technical or financial resources to process these files have long delays in paying compensation.

Insurance companies are required by law to create, maintain and register in accounting certain technical reserves related to obligations accepted under insurance contracts, one of which is the approved loss reserve.

• Approved damage stock it is established and updated monthly based on the estimates of loss notifications received by the company so that the fund created is sufficient to cover those losses.

The calculation of the approved loss reserve includes the estimated value of compensation for the approved loss, as well as the costs of establishing and assessing the loss, respectively, the costs of liquidating the loss, related to services provided by third parties. parties, such as: costs of technical expertise, court costs and others of a similar nature.

Thanks to the changes, the ASF wants to know at any time what payments the insurer is making, whether they are partial or full, whether it has built up its reserves for legal claims, when it has paid or rejected compensation, whether there are recourse or legal proceedings in in connection with a specific claim for damages from the insured.

What new data will RCA insurers have to provide

Insurers will be required to transmit through the computer system to the RCA database complete and correct information regarding registered losses and the approved loss reserve.

The transfer of information is carried out daily for all approved claims, and these

comprise:

• a) identification data of the insurance contract;
• b) claim case number;
• c) information about the type of damage, including damage to bodily integrity or health, or about death;
• d) name, surname, CNP, series and CI/BI number of the driver guilty of the accident, and an additional sign, if he is one of the persons declared in the RCA contract;
• e) identification number of vehicles participating in the event, body series or chassis series;
• f) the date of occurrence of the event;
• g) the place of production of the event, internal — Romania or external — other states;
• h) date of damage approval;
• i) the date of establishment of losses;
• j) initially registered approved loss reserve;
• k) revaluation of the approved loss reserve, if applicable;
• l) the date of revaluation of the approved loss reserve, if applicable;
• n) date of registration of claim for compensation;
• n) compensation paid and whether the payment is partial or final;
• o) date of payment of compensation;
• p) the date of rejection of compensation claims, if applicable;
• q) recourse, if applicable;
• r) legal proceedings, if applicable;
• s) the date of limitation of the right to claim compensation, if applicable.”

This rule will take effect on February 1, 2023, and until March 1, 2023, RCA insurers will be able to submit information based on the data available before the effective date of the provisions of this rule.

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