The law was adopted after representatives of the transportation industry protested against sharp price increases in less than a year, which insurers explained were caused by a rise in compensations for bodily injuries claims, as well as the bankruptcy of ASTRA Asigurari and CARPATICA Asig, two players known for their very competitive price on the MTPL lines.
The most important changes brought by the current legislation are:
- The prices for all segments of customers will be capped for a period of 6 months at a level of reference which will be calculated by the Financial Supervisory Authority until October 15th.
- The MTPL contract will be valid for periods ranging from one month to 12 months (multiple of one month) depending on the customers' preference.
- The insurer will be able to recalculate the premium if the data provided by the insured are proven to be false.
- The insured is able to cover the amount of the damage he caused to a third party in order to maintain his no-claim bonus
- The MTPL contract can be suspended for the time the vehicle is out of use or is prohibited to travel on roads. This procedure will be subject to further regulation.
- The insured is now obliged to cover the costs with a replacement vehicle if the damaged party demands it.
- The insurer is able to use telematics to calculate and to record customer driving history and behavior. Also, the no-claim bonus will be calculated taking into consideration the driver's history, not only the vehicle's history, as it was until now.
- Claims adjusters will be certified by a specialized body.
- Insurers will face higher penalties if they will not respect the legal deadline for the payment of an indemnity.
- Insurers will be able to use direct settlement on a voluntary basis.
- Bodily injuries will be able to be compensated, outside the courts of law, using a table of trauma points calculated by the Romanian Institute of Forensic Medicine. Inside the courts of law, this system will not be applicable.
- The Romanian Motor Insurers' Bureau (Romanian Green Card Bureau) and the Street Victims' Protection Fund (the Romanian guarantee fund for uninsured vehicles) will merge and function as one entity.