Romania's financial markets regulator ASF fined local insurance companies City Insurance and Euroins for late payment of the compensations related to mandatory car insurance (RCA) contracts.

City Insurance was fined RON 500,000 (EUR 100,000) fine while Euroins will pay RON 450,000 (EUR 90,000), Economica.net reported.

The ASF Board of Directors decided these sanctions after the regulator's controls at the two companies.

City Insurance and Euroins are the biggest players in the mandatory car insurance (RCA) segment mainly due to their low prices for this type of insurance. However, there have been many complaints from car repair shops about the late payment of compensations by these two companies.

Euroins also received some harsh sanctions from ASF last year due to financial irregularities.

Euroins is part of Bulgarian group Eurohold while City Insurance is controlled by a group of Romanian investors.

andrei@romania-insider.com

(Photo source: Dreamstime.com)