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_ RCA insurance charge capping should not exceed reference charges (association)

RCA insurance charge capping should not exceed reference charges (association)

"Given the situation caused by cancelling the business licence of Euroins, the market leader in the area of the RCA car civil liability insurance, the Association of Romanian Users of Financial Services (AURSF) supports the principle of capping the charges on RCA contracts in order to prevent their explosion to levels that make them unaffordable for consumers. The previous bankruptcy in this market, that of City Insurance -- the market leader at the time -- generated a massive increase in the RCA contract charges, and consumers can no longer stomach a similar new development this time as well. Although we support the principle of capping the charges on RCA contracts, we believe that the mechanism suggested by the government decision put up for public debate by the Ministry of Finance is not an optimal solution to the problem, because the premium rates applied by insurers on March 1, 2022 are not transparent and cannot be verified by consumers, to make sure that the cap is effectively respected," AURSF says in a press statement released on Thursday, told Agerpres.

AURSF says that the capping should not exceed the reference charges, which can be verified at any time by any interested person.

In addition, AURSF requests that the fines for non-compliance with the piece of legislation up for public consultation be much higher than those suggested in order to discourage non-application of the RCA contract charge capping.

The Association of Romanian Users of Financial Services was established in 2013 to represent the interests of users of financial services. AURSF is involved in all public debates tackling financial services and the impact on consumers of policies in the field.

In 2016, the AURSF chairman became a member on the Better Finance Board, the European federation of investors and users of financial services.


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