RCA prices remain capped until June 30, 2024, the Ministry of Finance announced on Thursday.
The government approved the three-month extension of the period of application of the maximum RCA insurance premium rates practiced by insurers on February 28, 2023.
The measure is necessary to combat the excessive increase in prices and the gradual stabilization of the RCA insurance market, to avoid negative effects in other sectors of the economy, the Ministry of Finance claims.
“We decided to come up with this temporary but vital solution for drivers, in the context where there are still unresolved problems in the car insurance market that translate into a market characterized by an imbalance between demand and supply”, says the Minister of Finance, Marcel Boloș .
The maximum premium rates have been set at the level of their own premium rates that were practiced by each RCA insurer on February 28, 2023, with the possibility of these being adjusted by a maximum percentage of 6.8%. The rates are applied in the case of RCA contracts concluded after the date of entry into force of the decision.
Distribution commissions related to RCA contracts are limited to a maximum of 8% of the net premium of distribution expenses, for a period of 3 months from the date of entry into force of the decision.
The calculation of the compensation takes into account a rate that cannot exceed the average rate charged by rent-a-car agencies that offer car rental services without a driver and is granted only in the situation where the damaged vehicle can no longer be used from the point of view of technical.
“The maximum period for which compensation can be granted is 30 days, either from the date of issuing the repair authorization by the units of the Romanian Police, or from the date of issuing the entry document for repair issued by the RCA insurer. The deadline can be extended only with the approval of the RCA insurer in justified situations, proven with documents”, according to the MFP.
In the case of vehicles that fall into the situation of total economic damage, the compensations cover the period between the date of damage detection and the date of submission of the compensation offer, in compliance with the terms provided by Law no. 132/2017. In this case, the amount of compensation representing the cost of temporary replacement of the damaged vehicle cannot exceed 25% of the market value of the damaged vehicle, explains MFP.
