Romanian Govt. to change mandatory car insurance (RCA) law by emergency ordinance

Romania's Finance Ministry published on August 18 the draft emergency ordinance for changing the law on mandatory car insurance (RCA).

The Government decided to change the RCA law by emergency ordinance after the European Commission urged it to change some of the provisions in the current law, adopted in 2017.

"As the European Commission considers that the current mode of operation restricts the freedom to charge by imposing a premium calculated by the Romanian Motor Insurers' Bureau (BAAR) and not by the RCA insurer, the proposal to amend the legislation aims to eliminate the obligation that BAAR sets the insurance premium in the case of the high risk insured," the draft emergency ordinance says.

The changes could lead to higher prices for mandatory car insurance policies, according to Hotnews.ro.

The European Commission started an infringement procedure against Romania in 2018 because of the changes to the RCA law adopted in 2017 following the protests of large transport operators against the high insurance premiums.

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