Romanian MPs approved yesterday with a large majority of votes a bill that sets new rules on the mandatory car insurance (RCA) segment.

Car owners can be compensated regardless of the service where they repair their car, and policies will not increase because of repair costs, according to the bill, reports local News.ro.

The law is hugely significant, because it will regulate the RCA auto insurance market in Romania.

All vehicles need to be covered by the RCA insurance, except for bikes and carriages, according to the bill. Car owners will not be able to register their vehicles unless they have a valid RCA insurance policy.

The new law replaces the maximum RCA price, adopted by the Financial Supervisory Authority (ASF) six months ago, with a reference price that will be calculated by ASF and will be indicative for the local insurers. The Financial Supervisory Authority will later issue a set of norms that will limit the RCA prices in a certain interval above the reference price.

editor@romania-insider.com