Customers, car repair shops ask bankruptcy of Romanian insurer Euroins

The AutoCar group of car repair shops and several other independent car service companies demanded the bankruptcy of Romanian insurer Euroins on Tuesday, for RON 1.5 million (EUR 0.3 mln) overdue debt.

"The AutoCar group of companies joins the approach of the seven repair units, two of them being BMW and Mercedes dealers, in requesting the bankruptcy of Euroins," AutoCar informed on Tuesday, according to Adevarul.

The group said that it already notified the Financial Supervisory Authority (ASF) on its action in court.

AutoCar currently holds overdue claims worth RON 5.17 mln against Euroins, but only RON 1.5 mln represent debt overdue more than 60 days - thus eligible for requesting the bankruptcy of the insurance company. In turn, Euroins accuses AutoCar of unfair policies, namely charging exaggerated bills - roughly five times the average fees charged in Romania for similar works.

Euroins was one of the top 5 insurers in Romania in 2019 by gross premiums underwritten, with a market share of 11.6%. Moreover, Euroins and market leader City Insurance held 70% of the mandatory car insurance (RCA) market in 2019. The two companies, which charge some of the lowest RCA insurance fees on the market, which explains the high business volumes, have been accused by car repair shops and consumer associations of delaying the compensation payments.

Euroins has also been fined by the market regulator ASF for several irregularities.

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