Following the control actions conducted by ASF, CITY Insurance and EUROINS Romania - the two insurers accounting for almost 75% of the MTPL insurance portfolio in Romania - were sanctioned by the local insurance market supervisor, www.1asig.ro wrote.

Following the control actions, the main deficiency identified, in the case of both companies, was the delayed payment of the compensations related to the MTPL claim files, ASF states.

In addition, the market wachdog's control revealed in both cases deviations from legal deadlines provided for the claims settlement procedures: in the case of CITY Insurance, ASF mentioned the company did not formulate in writing offers of justified compensation within the term provided by law, while EUROINS did not make written notifications regarding the reasons for which the company did not fully/partially approve the claims within the term provided by law and did not communicate the maximum amount of compensation within provided by the legislation in force.

Thus, ASF decided to sanction CITY Insurance with a fine in the amount of RON 500,000 (~EUR 102,000), and EUROINS Romania with a fine of RON 450,000 (~EUR 92,400).