New leader of RO car insurance market under fire from car repair shops
The car repair shops organised under the COTAR association, which also includes road transportation companies, claim that the largest insurer, Euroins, pays only 10% of the damages and that it has a similar situation to that of City Insurance, the former market leader that went bankrupt.
The insurer, part of a Bulgarian group, replied that it has an excellent relationship with hundreds of car repair shops, that it pays the damages faster than ever, and it warned it was considering legal action against COTAR for its allegations.
However, Economica.net reports that there are already thousands of cases in which the car repair shops have sued the insurer.
In general, the cases are won by the repair shops, however, not in substance, but on various procedural issues.
Now, COTAR, which brings together some 1,500 car repair shops, claims that Euroins pays even less than in the past. Euroins is the largest third-party liability insurance company in Romania, with over two million customers in this segment.
The company controls about 34% of the market in terms of total sales and about 40% of the car insurance market.
(Photo: Whirlitzer/ Dreamstime)