The Romanian Senate’s budget and finance committee endorsed the draft law that provisions, among others, the introduction of a benchmark for the fees charged by auto services for repairs covered by mandatory insurance contracts (third party liability or RCA), which are paid by the insurance firms on the behalf of their customers.

The bill is significantly improving the existing legal provisions in favor of the insurance companies, which have been blaming the auto services of taking advantage of the loopholes in the existing legislation, Economica.net reported.

In their turn, the auto services blame insurance firms for not paying the bills on time and often challenging the bills in court.

In February, the Competition Council’s head Bogdan Chiritoiu admitted that the law is not fair, as it allows abusive behavior of auto services, and recommended the lawmakers to amend it.

The decision of the Senate's committee generated harsh reactions from the representatives of the car repairing units, who were not invited to the latest round of debates.

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editor@romania-insider.com