​The General Directorate of Police of the Municipality of Bucharest wants to conclude a 2-year framework agreement for the purchase of compulsory car insurance (RCA/Green Card) for a minimum number of 398 and a maximum of 4,430 vehicles and motorcycles, the contract is estimated at more than 8.7 million lei ( without VAT), the auction announcement shows. The police demand not to raise prices during the entire term of the framework agreement and agree them with the ASF. In response, the Authority states that it does not approve RCA prices offered by insurers, which is prohibited by EU law.

The tender notice was published on Friday in the Electronic State Procurement System.

The General Directorate of the Police of the Municipality of Bucharest establishes as a mandatory requirement in the specifications that “prices for RCA-Green Card policies are approved by the ASF”.

Another mandatory requirement is that “The level of insurance premiums, established by the concluded contract, should not be subject to increase during the entire period of its validity, except for cases established by law.”

In the final provisions, the Police clarifies: “the price of RCA insurance for all types/brands of vehicles included in the offer (by category, cylinder capacity) will remain unchanged throughout the term of the framework agreement.”

2 years ago, the Police concluded a similar contract, also for 2 years, with Fast Brokers.

This specification did not require that the prices be approved by the ASF, but only that: “the level of insurance premiums established by the contract to be concluded shall not be subject to any increase throughout its term, except as provided by law” .

How is it possible that the price of RCA has not increased for 2 years?

• “RCA contracts can be concluded for a maximum of 1 year. Separately from the RCA contracts, an agreement/contract/agreement can be concluded that establishes others, such as: monitoring by the insured by means of telemetry systems of the way the vehicle is used; preservation of the tariff when the policy is extended, etc.» A source from the insurance industry explained to HotNews.ro.

The ASF argues that EU law prohibits it from approving or interfering with prices set by insurers

HotNews.ro has asked the Financial Supervisory Authority (ASF) to clarify whether insurers are obliged to transmit the applied rates to the RCA and whether the ASF has the leverage to approve or reject these rates, as policed ​​in the specifications.

• “There are, as usual, periodic reports that have a statistical purpose and are necessary for monitoring activities.
• In accordance with Directive 2009/138 (Solvency II), the ASF does not approve RCA prices offered by insurers.
• Moreover, the possible involvement of the ASF in this sense will lead to the opening of proceedings on violations”, – noted the representatives of the ASF.

On Friday, HotNews.ro asked the specifications and the General Directorate of Police of the Municipality of Bucharest for their opinion on these requirements, and we will return with the answers as soon as we receive them.

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