Romania: the new law on MTPL adopted; see here what are the main changes it provides for

The Chamber of Deputies (the lower house in Romania's bicameral Parliament) adopted on Tuesday, 16 May 2017, the New MTPL Law, which brings important changes to the local motor insurance industry.

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.

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