Romania: the new law on MTPL adopted; see here what are the main changes it provides for
Among these, the introduction of reference tariffs of MTPL policies - already calculated by The Financial Supervisory Authority - ASF -, the possibility of direct compensation, as well as the limitation expenses are some of the most debated aspects. Here is a list with the most important changes brought by the new law regarding MTPL insurance in Romania:
- The reference tariff - This was calculated by the Financial Supervisory Authority and is not compulsory, only acting as guidance. It was calculated based on data concerning MTPL policies (2012-2016) and claims (2010-2016) and its value is between RON 500 and RON 7,300 per year. The norm regarding reference tariffs will be enforced starting May 19, 2017.
- Direct compensation - Insurers must offer this auxiliary service, but it is only voluntary for clients.
- The administrative expenses and expenses related to the sales of MTPL policies, included in the premium tariff, cannot exceed 25% of the total tariff.
- The concept of "insured with a high risk" was introduced - this insured will be assigned by BAAR - The Romanian Motor Insurer Bureau - to an insurance company.
- The payment of the policy tariff can be made fully or in instalments.
- The MTPL contract can be concluded for a period from 1 month to 12 months, according to the option of the insured.
- The MTPL contract can be suspended at the insured's request, the insured being under an obligation to hand the car's number plates to the authorities.
- The cars which need to be matriculated must have a MTPL insurance before receiving their number plates.
- Bicycles and carriages will not pay for MTPL policies.
- The use of fake and/or counterfeit motor parts by services for repairing vehicles will be sanctioned.