If average compensations paid for body injury suddenly doubles or triples, their share will be significantly larger in terms of total premium tariff. Another factor which contributes to RCA’s price is the higher price of car parts, due to the depreciation of the leu. These could all lead to a possible recalculation of the RCA premium tariff, and companies might apply for the approval of the Insurance Supervisory Commission (CSA) in March-April to raise their prices.
“Things are beginning to evolve differently than before. Higher compensation claims have begun to appear. There have been accidents with bodily injury before, although these were generally resolved for lower amounts before ending up in court,” said Aurel Badea, Head of the Non-Life Insurance Division of the Allianz-Tiriac insurer.
Last fall, the Unita company paid out compensation worth €200,000 for bodily injuries to a single insured, of which €80,000 were medical expenses alone.
“People are beginning to demand their rights, and Romanian courts have started granting compensation as close to reality as possible. Average damage and its frequency are rising constantly, and the cost of repairs has also increased, by 25-30 percent in the latest period alone, due to the depreciation of the leu,” said the General Manager of the eClaims damage regulatory company, Ion Moise.
