ROMANIA, MTPL: The direct settlement clause may become mandatory

29 October 2020 — Andrei Victor
The MTPL legislation in Romania is in the process of being amended, the insurance portal 1asig.ro wrote here.

Thus, the direct settlement clause, currently optional, could become mandatory, so that, in case of a traffic accident, the damaged driver will repair his car to his own MTPL insurer. After that, the insurer of dameged driver will recover the settled claim from the insurer of the guilty driver.

Today, the direct settlement clause is optional, being an auxiliary coverage but obligatory offered by MTPL insurers.

The Romanian insurance portal 1asig.ro mentioned, quoting market sources that direct settlement clause "will become mandatory for all MTPL policies with the amendment of the MTPL Law (132/2017), debated since the beginning of this year. According to them, direct settlement can increase the level of consumer confidence in the insurance system, thus supporting the financial stability of the market, as well as consumer loyalty in terms of the quality of services received by the insured".

Nicu MARCU, President of ASF, also told Digi24 that "In the next period, the MTPL legislation will be amended, so as to give the consumer the possibility to settle the damage within his insurer".

Nicu MARCU mentioned that this coverage is already offered by MTPL insurers, the client having the possibility to he choose to settle the MTPL damage within his insurer, "but this insurance has a higher cost ".

The ASF President pointed out that this coverage is already offered by MTPL insurers, the client having the possibility to he choose to settle the MTPL damage within his insurer, but in this form the clause increase the MTPL tarrif.

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