Prime Minister Marcel Ciolacu announced on Thursday that the Government is extending the capping of RCA policy rates by another three months, until June 30.
“We want to combat this risk of excessive price increases due to imbalances previously produced on this market and give a helping hand to Romanians, as the ASF recently did and seriously reduced RCA insurance in the case of transporters” announced the head of the Executive.
The Confederation of Authorized Operators and Transporters from Romania (COTAR) drew attention, after the Ministry of Finance published the new draft emergency ordinance aimed at extending the capping of RCA tariffs until June 30, 2024, that any price capping imposed by the authorities, but not at the reference rate calculated and displayed on the ASF website does not help anyone, and what will happen after this period will be a disaster.
In a press release, COTAR specified that, “although it was seen that the prices increase regardless of the capping, the insurance companies will have the opportunity to double the prices, at the end of the so-called capping period, under the pretext that until then there were no increases of tariff. On the other hand, this type of intervention drives away both the current investors from the insurance market and those interested in entering the Romanian market, which will make only the current ones remain on the market sharks, who will have a monopoly and raise prices as much as they want. Such a measure is particularly dangerous and will give the opportunity to some players in the insurance market to justify a future bankruptcy that will also be paid by the insured, like the previous ones”.
Source: AGERPRES/ Editor: Adina Sîrbu/ Photo: Pixabay
