Premium
The Financial Supervisory Authority (ASF) pulled down a draft regulatory act on mandatory civil liability car insurance (RCA) fees in order to carry out an analysis of the submitted observations, ASF spokesman Daniel Apostol said on Friday.
Insurance brokers announced on Friday that they oppose the draft Government Decision on capping RCA policy rates, the main reason being the major negative impact the future regulatory act will have on insurance distribution, customers and on all participants in road traffic.
Insurers associations also announced that they do not agree with the draft Government Decision on freezing RCA rates, on the grounds that it violates European legislation, lacks economic foundation, is ambiguous and could destabilize the market even more.
In its turn, the Association of Romanian Users of Financial Services (AURSF) said that it supports the principle of limiting the price of RCA contracts, but considers that the mechanism proposed in the draft Government Decision does not represent an optimal solution to the problem and suggests that the capping should not exceed the reference rates.
The government's spokesman Dan Carbunaru announced that the draft act on capping RCA policy rates is not on the agenda of the government's Friday meeting, because the act was withdrawn by the Financial Supervisory Authority.
The Finance Ministry released the draft on Wednesday for public debate. The document provides for the freezing for a temporary period of six months of RCA fees at the level of March 1, 2022.
According to the draft regulation, distribution fees related to RCA contracts are limited to a maximum of 8 percent of the gross premium charged for a period of 6 months. AGERPRES
