The ASF specifications remained unchanged after the withdrawal of the RCA rate cap project.

The RCA tariff capping project started with the left. Although it was supposed to be approved in the Government meeting, it was removed from the agenda and could be approved next week, according to the prime minister.

Most likely, the ASF proposal will undergo changes, after the Competition Council and the Ministry of Justice have made several observations and recommendations. And representatives of insurance companies sent a letter claiming that the project would violate European law.

At the opening of the Government meeting, the Prime Minister announced that the project that forced insurance companies to return to RCA prices from a year ago was withdrawn. ASF representatives say they are analyzing the comments received.

Daniel Apostol, spokesperson of the Financial Supervisory Authority: “In this context, it is absolutely normal to look at the suggestions made, to make an analysis of all these observations. All these observations are the subject of an analysis that will lead to a revised version to come up with in the government’s proposal”.

Officials have not yet said what changes they will make. In the last days, the project received several approvals, including from the Competition Council, but with two recommendations.

Bogdan Chirițoiu, president of the Competition Council:
“Let’s look at the other big cost. Let’s look at the repair costs. That’s what we said, ‘Sir, cap the cost of repairs over this 6-month period.’ The second set of recommendations says, ‘Okay, we have 6 months now of market calm, but things will return to normal, we will leave the market free’. Or, if we don’t use these six months to regulate the dysfunctionalities in the market, we risk having price increases afterwards”.

And the Ministry of Justice gave a favorable opinion, but with the observation that there is a risk of illegality and the initiation of the infringement procedure. On the other hand, the Economic and Social Council, which has an advisory role, gave a negative opinion.

Radu Burnete, executive director of the Confederation of Concordia Employers: “The fundamental problem is that if all we do is to cap the prices, that does not solve the problem. and the problem is that for 10 years, under the watchful eye of the ASF, four large companies have gone bankrupt. If we cap even after if we raise the ceiling, we end up in the same situation, we haven’t solved anything and we’re destroying the compulsory insurance market”.

The representatives of the insurance companies sent a point of view to the Minister of Finance.

Mădălin Roșu, director of the Bureau of Motor Vehicle Insurers in Romania: “It’s hard to compare something from this year, which works according to completely different principles, with something from last year. Sure, it’s easy to say: ‘This year’s price vs. last year’s price. But the tariff structure is different’.

It violates European legislation, in short, many directives are violated, there are several decisions of the European Court of Justice”.

While the proposed RCA rate freeze has been delayed, many drivers who have defunct Euroins policies want to ditch them. But as this was in some cases the cheapest option, the insurance may now cost more. For example, a 38-year-old driver paid 2,200 lei for a fairly powerful car in January. He wants to give up the policy, but now the cheapest option is 2,500 lei.

Read HERE the project withdrawn by ASF.