In this context, UNSAR – the national union of the Romanian re/insurers -, calls again for transparency and market-based solutions to provide for fair pricing in MTPL claims and, consequently, to maintaining affordable and sustainable MTPL tariffs. To ensure fairness and better inform Romanian drivers, the ongoing debate over MTPL compensation could be resolved in their favor through amendments to the MTPL Law. These changes should correct existing imbalances and promote transparency for all stakeholders—policyholders, insurers, and claimants.
A key solution is the introduction of market-based reference prices for vehicle repair labor and replacement costs during repairs, ensuring that compensation aligns with actual market rates. The insurance industry has repeatedly proposed defining the “market price” based on final sale prices set by authorized businesses, reflecting supply and demand. This definition is clear, transparent, and fair, eliminating any need for policyholders to cover additional costs.
A recent ruling by Romania’s High Court of Cassation and Justice (Decision No. 4462/2024) reinforces this principle, stating that insurers must cover real market costs rather than arbitrarily inflated prices. This ruling protects consumers from excessive repair charges, which ultimately drive up MTPL premiums.
The media has frequently highlighted cases of repair shops and rental firms exploiting loopholes in the MTPL Law to impose unjustified costs, maximizing profits under the guise of “economic freedom.” However, these inflated costs burden all policyholders who pay higher premiums as a result.
While certain industry associations insist that insurers should cover any invoice issued by repair shops, their true priority is safeguarding their financial interests. They fail to acknowledge that inflated claims are funded by the premiums paid by drivers. The higher the repair and rental costs, the greater the financial strain on policyholders.
Romanian drivers are aware of their rights and support new measures for cost transparency. According to an IRES survey commissioned by UNSAR, over 90% of Romanians favor annual publication of reference prices for rental vehicles provided during repairs. This measure would prevent excessive charges and help maintain a sustainable RCA system.
Furthermore, 7 in 10 Romanians believe repair shops prioritize maximizing claims from insurers rather than fair pricing. In this context, 9 in 10 drivers support receiving insurer-recommended repair shop options when making an RCA claim—demonstrating a clear demand for more predictability in repair costs.
Cost predictability is essential for consumer protection and market stability. Publishing reference prices for rental vehicles would serve as a vital tool against overcharging, ensuring balance between claimants' needs and RCA system sustainability.
If even half the effort spent debating compensation calculations was redirected toward road safety initiatives, not only would numerous lives be saved, but accident frequency—and by extension, MTPL premiums—would also decline significantly.
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