Romania’s Government approved yesterday the decision that sets the maximum prices for the mandatory car insurance premiums (RCA).

The decision also includes an annex setting the prices for the RCA policies in the case of electric vehicles.

The maximum tariffs were decided in a special meeting of the Financial Supervisory Authority (ASF) on October 6. However, they had to be approved through a Government Decision, which happened yesterday.

According to experts, even if these tariffs are considered to be the maximum, it is expected that all insurers on the market will sell their policies at the maximum prices to reduce the losses caused by the Government’s decision to freeze RCA prices for six months. The insurance companies selling RCA policies above the maximum prices set by the Government risk getting fines of RON 1,000-5,000 (EUR 222-1,110).

The Government decided to freeze RCA premiums after transporters organized large protests in Bucharest and throughout Romania complaining about the rapid increase in RCA tariffs. The increases came as two big insurers which mostly sold this type of insurance, namely Astra and Carpatica Asig, went bankrupt while others had big financial problems.

editor@romania-insider.com