​Tens of thousands of drivers who insured their RCA cars with City Insurance, an insurance company that went bankrupt last year, have been waiting for more than a year for the Fund for Policyholders’ Guarantee (FGA) to pay them the difference in money for According to official data obtained by HotNews.ro, after , how they dropped their RCA insurance before it expired.

1.6 million drivers still have cars insured by RCA at Euroins and one of the reasons they are not canceling these contracts is that they will have to wait a long time before the FGA refunds the difference in premium for the period left uncovered .

In addition, before canceling the policy, Euroins would have had to take out new RCA insurance with another insurer, and the price would certainly have been higher, given the low and financially unsustainable rates charged by Euroins prior to bankruptcy.

In connection with such a large number of Euroins insured cars on the road, the government has extended the term of validity of these RCA policies for 3 months, the last day of validity is December 7, 2023.

RCA insurance from Euroins can only compensate up to €100,000

The danger for RCA policyholders in Euroins would be if they were accused of a serious accident that resulted in major property damage or casualties, according to the insurance broker.

In that case, their RCA policy could cover a maximum of €100,000 in damages, instead of what a regular RCA insurance might cover, ie €1,220,000 for property damage and €6,070,000 for bodily injury, moral damage and death.

In such a serious accident, the injured parties should receive a maximum of €100,000 from the Insurance Guarantee Fund (FGA).

How long did City Insurance policyholders who canceled their RCA policies wait for their money?

HotNews.ro wanted to know how long it takes on average to get paid if you cancel an RCA policy, and how long former policyholders of City Insurance, the former leader of RCA, which went bankrupt last year, had to wait for Euroins.

On 27 September 2021, ASF revoked City Insurance’s operating license and on 29 November 2021, FGA made the first payments on both claims and premium reimbursements.

Data provided to HotNews.ro by the Policyholder Guarantee Fund (FGA) shows that out of more than 78,000 premium refund requests submitted by drivers insured with City Insurance, the Fund has so far granted less than half, i.e. 34,393 refund requests. awards

• “The Fund has a legal obligation to settle payment claims in the order in which they are registered, whether it is a payment claim for reimbursement or a claim for the return of a premium. The FGA registered 78,165 requests for reimbursement of premiums for insurance creditors of City Insurance SA and 55,115 requests for reimbursement of premiums for insurance creditors of Euroins SA until 31 August 2023.
• For City Insurance SA, the FGA approved approx. 34,392 premium refund requests, and for Euroins SA approx. 8.164″, Officials of the Guaranty Fund of Policyholders clarified for HotNews.ro.

With City Insurance’s latest bankruptcy figures showing that the FGA is now considering payout claims from the July 2022 level, this means that the outstanding claims are more than a year old.

How does the FGA explain why RCA premium refunds are taking so long?

HotNews.ro asked the FGA to explain why these payments are taking so long.

• “The time to resolve a payment claim addressed to the Federal Tax Service depends on the completion of all stages of the administrative procedure, on the possible need for documentation, on the confirmation by the judicial liquidator of the validity of the insurance policy, on the situation notified by the liquidator regarding the cancellation of insurance policies, as well as the situation regarding compulsory collections, initiated by creditors against the insurer.
• Last but not least, the settlement of the payment claim depends on the volume of applications registered in the Fund, as well as on the structure of the FGA staff, which participates in their approval and approval.
• Please note that Law No. 213/2015 does not set a deadline for the settlement of FGA payment claims.
• Thus, payment claims are analyzed by the Fund within a reasonable, optimal and predictable period that allows the Fund to perform all administrative operations provided for by the regulatory framework, avoiding unjustified delays, taking into account the procedure for registering payment claims at the FGA.”, FGA representatives claim.

The average payment for RCA award refund requests in Euroins is 530 lei

The Insurance Guaranty Fund (FGA) has also announced how much it has paid out on average so far to Euroins policyholders who have canceled their policies and applied for refunds.

• “The level of the average payment for the first compensation claims paid by the FGA for the insurance creditors of Euroins SA is 530 lei, according to the estimates of the Fund based on the relevant history,” the representatives of the FGA said.

More than 220 requests to open loss files are received at Euroins every day.

HotNews.ro also asked how many new claims have appeared since the withdrawal of Euiroins’ authorization on March 17, 2023, and what is the monthly frequency of claims or compensation.

• “From the date of revocation of the company’s activity permit until August 31, 2023, 25,710 requests for the opening of claim cases were registered with a daily frequency of approximately 226 requests (working days).
• The requests for opening the file on damages do not contain any mention of the claims of the parties, they are contained only in the payment demands subsequently addressed to the Fund.” FGA representatives mentioned HotNews.ro.

Only 15% of applications for the return of premium funds are approved in Euroins. Payments of almost 1 million euros

The Policyholders’ Guarantee Fund (FGA) announced on Tuesday that it had registered 55,115 Schedule 9 premium refund requests from Euroins creditors until 31 August 2023.

Of these, by the end of August 2023, the FGA had approved 8,164 premium refund requests under the Fund’s Special Commission, which is less than 15% of the total number of requests submitted by Euroins policyholders.

The amount approved for payment on the mentioned premium refund requests is approx. 4.98 million lei.

• Read more: How hard it is for drivers who condemn RCA Euroins policies to get their money. The FGA has announced what payments it has made so far

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