Price of mandatory car insurance could drop in Romania

The Financial Supervisory Authority ASF has removed from legislation the insurers’ obligation to establish premium rates for mandatory car insurance RCA that cover all commitments which may arise from these contracts, reports local Mediafax. The decision could trigger a drop in the price of the insurance. ASF also decided that the premium rates can be modified after a minimum period of 6 months, down from 12 months, except indexation or changes in certain risk categories. The changes will come into force once they will be published in the Official Gazette. These decisions came after the Government asked the ASF to reduce the price for the RCA policies, especially for young people, who were forced to pay several times more than last year. Irina Popescu, irina.popescu@romania-insider.com