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    High-risk insureds protected by the RCA (civil liability insurance for car owners) Law

High-risk insureds protected by the RCA (civil liability insurance for car owners) Law

Bucharest, 28 September 2021The Financial Supervisory Authority (FSA) requires all the insurance intermediary companies to immediately inform all customers that if they receive from at least three different insurers offers for RCA premiums which are 36% ("N" factor - https://www.baar.ro/asigurati-cu-risc-ridicat/) higher than the reference tariff for the risk segment to which they belong, they are classified as high-risk insureds, according to Law no. 132/2017. This type of customer can ask the Romanian Motor Insurers' Bureau (BAAR) for an offer to conclude a RCA contract.

The "N" factor is determined by BAAR and is calculated for a vehicle with the same technical characteristics as the vehicle for which insurance is claimed and for the same bonus/malus class of the insured/user. The technical characteristics of the vehicles will be related to their cylinder capacity, except for vehicles with electric motors, in which case their power will be taken into account.

According to Article 19 of Law no. 132/2017, a high-risk insured may apply to BAAR asking for an insurance offer, and BAAR will issue an insurance offer calculated based of the reference tariff and will assign the insured a RCA insurer for the conclusion of the RCA contract, as follows:


  • BAAR settles the high-risk policyholder's request for the conclusion of the RCA contract within a maximum of 20 days after the complete submission of the documents requested by BAAR. The application form and the required documents can be found on BAAR's website at the following link: https://www.baar.ro/wp-content/uploads/2017/08/Anexa-1-la-Procedura-formular-cerere-oferta-risc-ridicat.pdf.
  • According to the information available on BAAR's website, the above-mentioned documents will be submitted to BAAR in one of the following ways:
  • E-mail: riscridicat@baar.ro;
  • fax: 004 021 319 13 01;
  • by post: str. Vasile Lascăr nr. 40 – 40 bis, et. 6, sector 2, București, postal code 020502.

For a RCA contract to be allocated to a RCA insurer, the offer must be explicitly accepted by the high-risk policyholder. The insured communicates to BAAR all the information necessary to prepare a premium offer or to allocate the RCA contract to an insurer.

The allocation provided for above is made by BAAR once the insured is notified of the insurer to which the RCA contract has been allocated.

The ASF's request, addressed to insurance intermediaries, comes in the context of the withdrawal by the ASF of the operating licence of the Insurance - Reinsurance Company City Insurance S.A. and the application for the opening of bankruptcy proceedings against the company. This has led to a number of situations that may affect customers of insurance products, in some cases by making it more difficult to offer and issue RCA insurance policies distributed through insurance brokers, including through online insurance policy marketing channels.


About the Financial Supervisory Authority

The Financial Supervisory Authority is the national authority, established in 2013 by GEO 93/2012 approved by Law 113/2013, for the regulation and supervision of the insurance markets, private pensions, as well as the capital market. The FSA contributes to strengthening the integrated functioning framework of the three sectors, amounting to over 10 million participants. More information can be found on www.asfromania.ro.