Facebook LinkedIn

National awareness campaign regarding the role of the mandatory house insurance

Bucharest, 15 October 2018 The Financial Supervisory Authority (FSA) and the Insurance Pool against Natural Disasters S.A. (PAID) will hold a national awareness campaign on the significance of the mandatory house insurance between 15 and 19 October 2018.

At its second edition, the campaign shall be carried out this year under the slogan "This year I protect my house!" and will take place in eight cities from Moldova region, the most affected by the risks covered by the Insurance Policy against Natural Disasters (PAD) - Braila, Galati, Tecuci, Barlad, Iasi, Targu Frumos, Botosani and Roman.

"The decreased coverage level of the mandatory house insurance in Romania, of only 18.75%, reflects the acute need to inform the population on the risks to which they are subject in the event of not concluding the PAD policy. Through our partnership with PAID, we aim to get the audience to know and understand the significance of this product,” stated the FSA  President, Leonardo Badea.

"Although the law of mandatory house insurance has been in force for years, the PAD policy is still too little known and understood by the Romanians. We are convinced that only by recognizing the usefulness of this insurance can we increase the level of protection for the housing stock in Romania. That is why we also start this year together with FSA  in hoping that we will succeed in explaining to as more homeowners the role of the mandatory house insurance, "stated Nicoleta Radu, General Manager, PAID Romania.

The representatives of ASF and PAID will attend meetings with local authorities and homeowners, during which there will be presented information on the mandatory house insurance, on the risks faced by the citizens when not concluding  such an insurance, as well as information on how this product can be used as efficiently as possible in order to meet one own needs. They will also distribute informative leaflets, brochures and the PAD Guide.

"ASF is running a series of financial education projects and for the citizens' information regarding the significance of non-banking financial services. We have aimed to be as close as possible to the consumer in order to inform him and help him take all decisions regarding the purchase of financial products in full knowledge,”, stated the FSA Prime Vice-President, Mr. Ovidiu Wlassopol.

Considering that in Romania are 7.3 million uninsured houses, it is essential to inform each owner on the responsibilities incumbent to him in this respect. The state has no legal obligation to provide support to the owners whose homes have been damaged as a consequence of certain natural disasters and who have not concluded the PAD, so that each Romanian is responsible for his property.

*********

About ASF

ASF is the national authority established in 2013 through GEO 93/2012 approved by Law 113/2013 for the regulation and supervision of insurance markets, private pensions and the capital market. ASF contributes to strengthening the integrated operating framework of the three sectors, which totalls over 10 million participants. More information can be found on  www.asfromania.ro.

 

About PAID

The Insurance Pool against Natural Disasters (PAID) is an insurance-reinsurance undertaking, with private capital, formed by the association of insurance companies for the conclusion of compulsory home insurance in accordance with the provisions of Law no. 260/2008.

PAID was established as an insurance company in November 2009, through the joint effort of 12 insurance companies (ABC Asigurări, Astra Asigurări, Carpatica Asig, Certasig, City Insurance, Credit Europe Asigurări, Euroins România, Generali, Grawe România, Groupama România, Platinum Asigurări și Uniqa Asigurări), shareholders of PAID.

Under the law, PAID manages the compulsory home insurance system, covering three main risks specific to Romania: Earthquake; Flooding; Landslide.