Specific measures to protect MTPL policyholders

Bucharest, 25 January 2024 - In the context of discussions held by the management of the Financial Supervisory Authority (ASF) with representatives of carriers and insurance companies, the solutions identified to protect MTPL policyholders are beginning to materialize.

The new formula for calculating the recommended premium for the category of high-risk policyholders, natural and legal entities, owning transport vehicles with a maximum authorised mass of more than 16 tonnes, is operational, and several offers have already been issued by the Romanian Motor Insurers’ Bureau (BAAR).

The possibility of suspending the effects of the MTPL contract, the damage certificate and the electronic monitoring of the validity of the MTPL through the network of traffic surveillance cameras are measures included in the draft law transposing the provisions of Directive 2021/2118/EC, which has already been registered at the Romanian Senate and will go through the necessary stages of the legislative process.

Also, the payment of the MTPL premium in instalments regardless of its level, the possibility of reducing the amount of the premium by introducing an excess payable only in the event of damage and other elements concerning the reduction of the financial effort of potential policyholders are to be introduced as amendments in the draft above legislation.

ASF has already started the process of revising Rule No. 20/2017, necessary as a result of the amendments to be made by the draft law on the transposition of Directive 2021/2118/EC. The estimated deadline for drafting is 30 days after the publication of the draft law in the Official Journal of Romania, and the deadline for implementing the provisions is 30 days after its publication in the Official Journal of Romania.

ASF will continue to identify and implement medium and long-term measures necessary to stabilise the MTPL market and protect the rights and interests of consumers (natural and legal entities).