How much will the civil liability insurance policy for motor vehicles (RCA) cost, as a maximum, over the next six months? The maximum rate for drivers without damages will be between lei 541 and 3,087 depending on the motor vehicle type. For the drivers w
Author: Anelis Baciu
Over the next six months, individuals will pay a maximum rate for the mandatory civil liability insurance for motor vehicles (RCA) comprised between lei 541 per year and lei 3,087 per year, in reference to the age and the cylinder capacity of the motor vehicle. These rates are valid for the B0 class, i.e. without penalties or bonuses for the behavior in traffic.
For the drivers having a “stained” history, i.e. having produced traffic accidents, the rates are indexed, being possible to get to a doubling, as the worst case scenario. Thus, the drivers having in the driving record more than 3 damages could pay maximum between lei 1,082 and lei 6,074 per year civil liability insurance policy for motor vehicles (RCA).
The lowest maximum rate calculated by the Financial Supervisory Authority, of 541 lei per year, will be paid by a driver with the age over 60, driving a motor vehicle with a cylinder capacity below de 1,200 cubic centimeters. For a Logan car, with a cylinder capacity of 1,200 – 1,400 cubic centimeters, the maximum rate for the civil liability insurance policy for motor vehicles (RCA) for one year varies between lei 800 and lei 541. The highest rates, as expected, for the young people aged below 25, these ones being considered the riskiest by the insurance companies.
For instance, the most expensive insurance policy for one year, for a driver in Bucharest, with the age below 30 and a motor vehicle with cylinder capacity of 1,600 cubic centimeters currently reaches lei 1,515 and it is sold by Allianz-Ţiriac. After the maximal rates calculated by the Financial Supervisory Authority have been approved by the government, the most expensive policy will be by 60% cheaper than the most expensive policy at the current moment. The representatives of the insurers claim that the maximal rates will have discriminatory effects for the individual clients, since they favour the drivers with doubtful behavior in traffic and high damage index and penalize the ones with good damage history.
“The drivers in the big cities and with high damage index are the only ones gaining. For the other ones, the rate increases.”
The drivers in the big cities, where the high frequency of accidents increases the damage index level, are the only ones that will benefit from a decrease of the rates for the civil liability insurance policy for motor vehicles (RCA), whereas for the other ones the rates at which the policies will be taken out are going to be in average over 20% higher, a calculation made by Safety Broker, the biggest broker for civil liability insurance for motor vehicles (RCA), indicates, taking into account the rate leveling effect.
The analysis of Safety started from the fact that an insured with the age between 31 and 40, having taken out last year a civil liability insurance policy for motor vehicles (RCA) for a new Logan, therefore B0 class (without premium discount or penalty), renews their civil liability insurance policy for motor vehicles (RCA). For instance, a driver in Bucharest having taken out a civil liability insurance policy for motor vehicles (RCA) at B0 class at a rate of lei 772 will pay, upon the policy renewal, lei 694, in the current market conditions and provided that they had no damages. After the policy enforcement, the rate that they will pay is going to be lei of 549, i.e. a 20% drop. For the drivers in the small towns and localities, the situation changes. Thus, for a motor vehicle registered in Reşiţa, the premium paid upon renewal is currently of lei 399 and it will get to lei 549 after the enforcement of the maximal rates. This would equal a 38% increase of the rate.
“In most counties of the country, more will be paid. In very many towns and small localities in counties such as Teleorman, Prahova, Olt, Giurgiu, Tulcea, Sălaj etc., the increase will be of 38%. The champions of the additional payments will be the drivers in Maramureş and Covasna, where the increases will be of 78%, respectively 50%. Only in 12 counties, less money is paid, the biggest rate reduction being of only 21%. The majority thereof are, however, between 2% and 9%. We have reached these result taking into account the fact that the insurers will take the rates to the maximum level, in order to reduce loss, fact that is otherwise admitted by the companies”, Viorel Vasile, managing partner at Safety Broker, explained.
The maximal rates calculated by the Financial Supervisory Authority are currently subject to public consultation, being subsequently adopted by the Government and published in the Official Gazette. After the publication in the Official Gazette, 10 more days will lapse until the actual application.
The market of civil liability insurances for motor vehicles (RCA) is a stake of over 3 billion lei yearly for the local companies of general insurance, that rely in a proportion of 50% on the incomes from the civil liability insurances for motor vehicles (RCA).
Article published in the printed edition of Ziarul Financiar as of October 28th, 2016