Rule No. 23/ 2014 on compulsory insurance against civil liability for prejudices caused by vehicle accidents

Transcription

1 FINANCIAL SUPERVISORY AUTHORITY INSURANCE-REINSURANCE SECTOR Rule No. 23/ 2014 on compulsory insurance against civil liability for prejudices caused by vehicle accidents Based on the provisions of Art. 1 Para (2), Art. 2 Para (1) Letter b), Art. 3 Para (1) Letter b), and Art. 6 Para (2) of Government Emergency Ordinance No. 93/2012 on the establishment, organisation and operation of the Financial Supervisory Authority, as subsequently amended and supplemented, approved by Law No. 113/2013, as subsequently amended and supplemented; Further to the deliberations of the Financial Supervisory Authority s Board of 21 October 2014, The Financial Supervisory Authority hereby issues this rule: TITLE I Third party civil liability insurance contract and the authorisation of insurers to practice RCA insurance CHAPTER I General Provisions Art (1) In accordance with the provisions of Art. 49 of Law No. 136/1995 on insurance and reinsurance in Romania, as subsequently amended and supplemented, insurers practicing compulsory insurance against civil liability in respect of the use of vehicles in Romania grant compensation for prejudices caused by vehicle accidents, for which the policyholders tort liability to third parties shall be entailed. The insurance does not cover liability arising from the execution of a goods transport contract performed against payment. (2) The compulsory insurance contract against civil liability for prejudices caused by vehicle accidents covers the civil tort liability of the owner or user of a vehicle for the prejudices caused to a third party by the use of the vehicle. (3) The contractual conditions for the compulsory RCA insurance are regulated by the provisions of Law No. 136/1995, as subsequently amended and supplemented, and by this rule. Art. 2. For the purposes of this rule, the terms and expressions below shall have the following meanings: 1. claim report a procedure whereby the injured party files a claim with the insurer based on documents revealing the occurrence of an event covered by the insurance policy; 1

2 2. bonus-malus a system whereby the policyholder/user falls under any of the bonus classes (which reduces the insurance premium) or in any of the malus classes (which increases the insurance premium), depending on the loss history of the policyholder/user over the reference period; 3. electronic issuance the underwriting of the RCA policy simultaneously with the registration and instant storage in the insurer s information system of the data comprised by the policy; 4. premium rate indexation uniform increase by the RCA insurer of the premium rates by the same percentage; 5. RCA insurance policy the written form of the compulsory insurance contract against civil liability for prejudices caused by vehicle accidents; 6. vehicle owner/co-owner any natural or legal person mentioned in the vehicle s identity documents or in other documents attesting to the ownership right; 7. territory in which the vehicle is normally based represents: a) the territory of the state in which the vehicle is registered either permanently or temporarily; b) the territory of the state in which the distinguishing sign is issued to a vehicle, in cases where no registration is required for a particular type of vehicle but that vehicle is assigned a distinguishing sign similar to the registration plate or to an insurance policy against civil liability in respect of the use of motor vehicles; c) the territory of the State in which the vehicle owner or user is a permanent resident, in cases where neither registration plate is required nor distinguishing sign is assigned for certain types of vehicles; d) the territory in which the accident took place, if the vehicles involved in the accident do not have a registration plate or the registration plate does not correspond or no longer corresponds to the vehicle, for the purpose of determining the compensation, in accordance with this rule; 8. vehicle user any natural or legal person entitled for a specific period of time to use the vehicle based on a contract concluded with the owner/co-owner; 9. vignette the sticker placed on the windshield of the vehicle in a place visible from the outside, issued together with the RCA insurance policy. CHAPTER II Authorisation of insurers and conditions for practicing compulsory RCA insurance Art (1) Insurers may practice compulsory RCA insurance if they are authorised to conduct insurance activities, in accordance with the provisions of Law No. 32/2000 on insurance activity and supervision insurance, as subsequently amended and supplemented, and cumulatively meet all of the following special conditions: a) they are authorised to underwrite civil liability risks in respect of the use of vehicles, provided under Letter B Class 10 of Annexe No. 1 to Law No. 32/2000, as subsequently amended and supplemented; b) they have a claim settlement representative in each state located within the territorial coverage limits of the RCA insurance, as defined in Art. 1 1 Item 7 of Law No. 2

3 136/1995, as subsequently amended and supplemented, and of the other states, signatories of the Multilateral Agreement; c) they have a territorial network consisting of at least one unit, branch or agency, registered with the trade registry in each county and in Bucharest Municipality, except for Ilfov County, both for the insurance contracting activity and for ascertaining and adjusting losses for vehicles; d) they carry out motor vehicle damage ascertaining activities by their own or contracted specialised personnel, and make compensation payments in each county and in Bucharest Municipality, except for Ilfov County; e) they have, both for the head offices, and for the territorial units, adequate hardware and software and the necessary personnel to allow contracting RCA insurance, to keep detailed records on the conclusion, execution and termination of the RCA insurance, to manage loss files and send such information in electronic form to the CEDAM database; f) they carry out compulsory RCA insurance activities only at: (i) the head or secondary offices of insurers and insurance intermediaries; (ii) the head or secondary offices of the legal person policyholders or potential policyholders; (iii) the domicile or, as applicable, the residence of the natural person policyholders or potential policyholders; g) they have a reinsurance programme guaranteeing an own prudential withholding; h) they are members of the Romanian Motor Insurance Bureau, hereinafter referred to as BAAR, and of the "Street Victim Protection Fund" Association. (2) The conditions for practicing compulsory RCA insurance, provided under Para (1), must be met throughout the validity period of the authorisation by the insurers authorised to practice such insurance. (3) The insurers that are authorised to practice compulsory RCA insurance shall assume liability for all RCA policies and for all errors or omissions in the issuance of the RCA insurance policies either directly or through insurance intermediaries. Art (1) In order to be authorised to practice compulsory RCA insurance, the applicant insurers shall submit an application to the Financial Supervisory Authority, together with the documentation comprising the following: a) the documentation attesting to fulfilment of the conditions provided under Art. 3 Para (1) Letter a); b) the list of claim settlement representatives provided under Art. 3 Para (1) Letter b); c) the list of territorial units of the insurer where it conducts the activities provided under Art. 3 Para (1) Letter c), together with the supporting documents, issued by the trade registry office, attesting to the existence of such territorial units; d) the list of offices belonging to the legal entities with which the insurer concluded mandate contracts to carry out insurance contracting activities, accompanied by supporting documents, issued by the trade registry office, attesting to the existence of such territorial units; e) the list of specialised personnel in charge of conducting motor vehicle damage ascertaining and adjustment activity, the work structure necessary to make compensation payments, as well as other information deemed relevant, for each territorial unit, under the signature of the executive manager of the undertaking; 3

4 f) the statement of the executive manager of the undertaking and of the manager of the specialised compartment regarding the fulfilment of the conditions provided under Art. 3 Para (1) Letter e); g) the explanatory memorandum which shall include, on a mandatory basis, the premium rates for the first 2 years and the actuary calculation methods used for establishing the premium rates, according to Art. 21, as well as an estimate of the specific ratios for a period of 5 years; h) the statement of the executive manager regarding the fulfilment of the conditions necessary to comply with the provisions of Art. 20 Para (4). (2) The insurer whose registered office is in a EU Member State shall be deemed authorised to practice compulsory RCA insurance in Romania as of the date when the competent authority in the home Member State informs it of the Financial Supervisory Authority s confirmation regarding the receipt of the notification referring to the intention to exercise its freedom to provide services or the right of establishment. (3) RCA insurers must inform the Financial Supervisory Authority of any modification and/or supplementation of the information transmitted according to Para (1), within 30 days from that modification or supplementation. Art (1) After reviewing the documents submitted to it, as well as the indicators of the fact that the insurer may manage such form of insurance in conditions compatible to the regulations on prudential practice, the Financial Supervisory Authority shall decide on granting the authorisation to practice compulsory RCA insurance. (2) The authorisation may be withdrawn or suspended by the Financial Supervisory Authority, according to law. Art (1) RCA insurers must submit to the Financial Supervisory Authority, within 30 days from the authorisation date, the following documents: a) the proof of the reinsurance legal relationships; b) a copy of the BAAR mandate to issue green cards, as member of the national bureau; c) a copy of the document attesting to the affiliation to the "Street Victim Protection Fund" Association. (2) RCA insurers must submit to the Financial Supervisory Authority a copy of the additional act amending and/or supplementing the reinsurance contract submitted according to Para (1) Letter a), within 30 days from the amendment or supplementation date. (3) RCA insurers that notified the Financial Supervisory Authority of the performance of the insurance activity against civil liability in respect of the use of vehicles on the territory of other EU Member States, according to the provisions of Law No. 32/2000, as subsequently amended and supplemented, must carry out their activity in compliance with the national legislation of said countries. (4) The insurers that have the right to practice compulsory RCA insurance in Romania, based on the right of establishment and on the freedom to provide services, shall carry out their activity in compliance with the provisions of this rule. Art (1) For the implementation of the provisions of Art. 53 of Law No. 136/1995, as subsequently amended and supplemented, and of Art. 5 Letter c) of Law No. 32/2000, as subsequently amended and supplemented, in consideration of the preparation and publication 4

5 of these rules, the management of the monitoring programme of insurers practicing this insurance, the development and maintenance of the CEDAM database, as well as for the proper protection of the policyholders interests, a rate of 1.00% of the gross insurance premiums collected each month shall be withheld for the compulsory RCA insurance. (2) The amounts obtained by applying the 1.00% rate to the monthly volume of collected gross insurance premiums shall be transferred each month, prior to the last working day of the month following that for which the reporting is made, into the account of the Financial Supervisory Authority. (3) The percentage rate referred to in Paras (1) and (2) may be amended depending on the achievement of the abovementioned objectives. Art RCA insurers shall keep records regarding the compulsory RCA insurance and submit, on a quarterly basis, to the Financial Supervisory Authority, the reports prepared according to the templates set out in Annexes Nos. 1, 2, 3 and 4, prior to the last working day of the month following the quarter for which the reporting is made, both in writing and in electronic form. Art RCA insurers must publish on the website and periodically update all necessary data that will allow the injured parties direct access to the information regarding the claim reporting and ascertaining procedure, as well as information regarding the specialised personnel in charge of conducting the ascertaining and adjustment of motor vehicle damages. Art (1) The insurers issuing RCA insurance policies for vehicles registered in Romania shall transmit to the CEDAM database complete information regarding the RCA insurance policies concluded directly or through intermediaries. (2) RCA insurers shall transmit to the CEDAM database, through the electronic system, using an electronic communication medium, all information related to the conclusion of the compulsory RCA insurance and the expiry date or termination of the insurance documents, as well as information regarding the losses registered based on the RCA insurance policies further to events occurred during the term of the insurance contract. Art (1) The RCA insurer shall designate claim settlement representatives in each Member State, with the exception of the Member State in which it obtained authorisation to practice insurance against civil liability in respect of the use of vehicles. The claim settlement representative shall be established in the State where it was appointed, if it is a legal person, or it shall be a resident of, or established in, the Member State in which it was appointed, if it is a natural person. (2) The appointment of a claim settlement representative shall not be construed as establishment of a subsidiary of the RCA insurer. Art (1) The claim settlement representative is authorised to investigate claims in the name and on behalf of the RCA insurer and to represent the RCA insurer. To this end, the claim settlement representative prepares the loss file and takes all necessary measures for the settlement of claims filed by the injured party for the prejudices caused by an accident, as a result of the use of a vehicle: 5

6 a) for which the insurance against civil liability was issued by an insurer or its subsidiary in a Member State other than the State where the injured party is resident or has its seat; b) that comes from a Member State other than that where the injured party is resident or has its seat; and c) for the prejudice occurred in a Member State other than that where the injured party is resident or has its seat. (2) The claim settlement representative may act for more than one RCA insurer. Art (1) The claim settlement representative must be authorised to represent the RCA insurer with full powers, including the disposal right before the injured party, must be given the necessary competence to respond to the justified compensation claims of the injured party and be able to examine the case in the official language of the Member State where the injured party resides or has its seat. (2) The appointment of a claim settlement representative does not exclude the right of the injured party to initiate direct proceedings against the person that caused the prejudice or its insurer, as the case may be. Art (1) The RCA insurer shall inform the "Street Victim Protection Fund" Association of the first and last name, date of birth and address or the work point of the claim settlement representative, where it is represented by a natural person or of the name and registered office, where it is represented by a legal person, as well as regarding all changes in respect of the representative within 7 days from the appointment or from the occurrence of such changes. (2) The "Street Victim Protection Fund" Association shall immediately communicate such information to the national information centres in the Member States. CHAPTER III Insurance Contract SECTION 1 General Provisions Art (1) A vehicle is considered insured if its owner has entered into a compulsory insurance contract against civil liability for prejudices caused by vehicle accidents, valid within the territorial limits referred to in Art. 1 1 Item 7 of Law No. 136/1995, as subsequently amended and supplemented, as well as of the other States signatories of the Multilateral Agreement, hereinafter referred to as the compulsory insurance against civil liability in respect of the use of motor vehicles or compulsory RCA insurance. (2) The RCA insurance contract shall be concluded with an insurer authorised to practice compulsory RCA insurance in Romania. Art (1) Upon the conclusion of the compulsory RCA insurance, the insurer must issue to the policyholder the compulsory insurance policy against civil liability in respect of the use of vehicles, hereinafter referred to as RCA insurance policy, along with the vignette and the international insurance document. 6

7 (2) Based on an additional act, the RCA insurance contract may include additional clauses if they do not reduce or restrict the rights of the injured party arising from the compulsory RCA insurance and do not breach the legal provisions. (3) RCA insurers must request all information necessary for the risk evaluation, according to their own criteria set out in the premium rate, and to verify the accuracy of the information regarding the identification and technical data of the vehicle, the data of its owner/user and the proof of the fiscal registration of the vehicle in the name of the new owner, for vehicles for which the insurance is required for the purpose of registering the vehicle in Romania. Art (1) The proof of the existence of the compulsory RCA insurance, during the controls carried out by competent bodies, in compliance with the provisions of Art. 64 of Law No. 136/1995, as subsequently amended and supplemented, shall be: a) the RCA insurance policy issued by the RCA insurer, for the validity period mentioned therein, as well as the vignette applied on the vehicle s windshield in a place visible from the outside for vehicles registered in Romania; b) the international insurance document; c) the international documents for the insurance against civil liability in respect of the use of vehicles, issued by foreign RCA insurers, valid in Romania and only for the period mentioned therein, or the border insurance policy for vehicles registered outside the European Economic Area and the Swiss Confederation. (2) For vehicles normally based in a Member State, the registration plates attest to the fact that the national bureau in the Member State is a guarantor of the payment of the compensation to the injured party in a vehicle accident. (3) In the case of controls carried out by the competent authorities, the owners or users of the registered vehicles, which are normally based in Romania, must present the valid RCA insurance policy or, outside Romania, the international insurance document. (4) RCA insurers must confirm the validity of the RCA policies and communicate copies of these policies at the request of courts and other public authorities, of the autonomous administrations, at the request of insurers that have subrogated to the rights of the injured party, and at the request of other natural and legal persons. Art (1) The compulsory RCA insurance document issued by an RCA insurer in exchange for a premium paid by the owner or user of a vehicle guarantees, for the validity period indicated therein, compensation for losses caused by vehicle accidents occurred within the territorial coverage limits, in accordance with the provisions of these rules or with the legislation regarding compulsory RCA insurance, in force at the time of the accident, of the State in which it occurred. (2) Within its territorial coverage limits, the compulsory RCA insurance guarantees, for the same premium, coverage of the prejudices in compliance with the legislation in force in the state on the territory of which the vehicle accident occurred and with the compensation provided in such legislation or that provided in the insurance contract, whichever is higher. (3) In the case of a prejudice caused to a citizen of a Member State, by means of a vehicle normally based in Romania, during the travel between two Member States in which the Treaty Establishing the European Economic Community is valid, if there is no national bureau in charge for the crossed territory and where the prejudice occurred, the provisions of these rules 7

8 or of the legislation of the State where the insurer that issued the RCA policy is based shall apply. Art. 19. Compulsory RCA insurance is concluded for a limited period, as follows: a) for vehicles registered in Romania, for one-year or half-year periods, as the case may be; b) for vehicles for which insurance is required for the purpose of their permanent registration in Romania, for one-year or half-year periods, as the case may be, if the owner provides proof of the fiscal registration of the vehicle in its name; c) for vehicles registered in other Member States, for which insurance is required for the purpose of importing them to Romania, for a period of maximum 30 days from the ownership acquisition date, evidenced by supporting documents; d) for vehicles temporarily registered as follows: (i) for foreign vehicles that benefit from the temporary customs admission regime, for one-year or half-year periods, during the temporary registration, if the owner provides evidence of the fiscal registration of such vehicle in its name, unless the vehicle is excluded from the payment of such taxes; (ii) for vehicles intended for export, for a period of maximum 30 days; e) for vehicles temporarily authorised for road traffic, for periods of 30 days, but no more than 90 days cumulated; f) during the authorisation for road traffic for tests, for one-year periods. Art (1) The RCA insurance policy must contain information on: the parties involved in the contract, the validity period of the insurance, the maximum compensation limits set by the insurer, the insurance premium, the mediation fee or the average direct purchase cost, the bonus-malus class and the registration number or vehicle identification number, as well as the States where such document is valid. (2) The form and content of the RCA insurance policy, of the international insurance document and of the vignette are provided in Annexe No. 6. (3) The Financial Supervisory Authority shall allocate to each newly authorised insurer a unique series which shall be mentioned in the RCA insurance policies and vignette. (4) The RCA insurance policies shall be issued electronically. (5) The mediation fee shall be mentioned in the RCA insurance policy both as absolute value and as percentage applied to the insurance premium mentioned in the policy, its value being included in the total insurance premium. (6) The average direct purchase cost shall be mentioned in the RCA insurance policy as a percentage, being included in the insurance premium, and shall be calculated by the RCA insurer for the insurance policies issued through its own personnel in the calendar month preceding the policy issuance. (7) The RCA insurer shall determine on a monthly basis, the average direct purchase cost related to such month as a percentage of the direct purchase costs applicable on the RCA policy issuance date, without considering any remunerations depending on the performance of the portfolio managed by its own employees and the gross insurance premiums written in such month. 8

9 Art (1) RCA insurers must establish premium rates by categories of homogeneous risks, for one-year periods, calculated on generally accepted actuarial bases, for the compensation limits set out based on the provisions of Art. 24, so as to cover all the obligations arising from the conclusion of RCA insurance contracts, the establishment of the technical reserves referred to in the legislation in force and the payment of contributions to the funds set up in accordance with the legislation in force, as well as the purchase and administrative costs. (2) The premium rates established by the insurers may contain commercial discounts up to a level of no more than 10%, with the exception of discounts granted to pensioners and persons with locomotor disabilities, as well as those established by the bonus-malus system. (3) The compensation limits established by each RCA insurer, as well as the premium rates established in accordance with these rules shall be notified to the Financial Supervisory Authority no later than 30 days before the beginning of the period in which they can be applied, along with a statement of the actuary responsible for the calculation of insurance premium in respect of the correctness thereof, acknowledged and signed by the executive manager of the undertaking. The actuarial calculation must contain the risk premium, including an estimate of the loss frequency and the average loss for each category of risk for which the premium rate is calculated. (4) By way of exception from the provisions of Para (3), the indexation of the premium rates shall be notified at least 10 working days prior to the commencement of the period in which they shall be charged. (5) The premium rates may be amended after at least one year from the last notification, except for the indexations or increases for certain categories of risks. (6) The insurers must submit, in electronic form, to the Financial Supervisory Authority, the assumptions used, the actuarial methods and the justification for their application to the calculation referred to in Para (1), together with the database used for such calculations. (7) The RCA insurance rates must contain the bonus-malus system. The application criteria for the bonus-malus system are those mentioned in Chapter IV of Title II. (8) RCA insurers failure to observe the provisions of this article is punishable by the withdrawal of the authorisation to practice compulsory RCA insurance, in compliance with Art. 39 of Law No. 32/2000, as subsequently amended and supplemented, and with the rules issued for the application of such law. Art (1) RCA insurers must ensure the access of prospective clients to the premium rates charged by them on the website of each RCA insurer, at its registered office and at the addresses of its territorial units, as well as to provide all information in relation to the criteria taken into account in the calculation of the insurance premium. (2) RCA insurers/insurance intermediaries may not offer, promote or sell RCA insurance for premiums other than those resulting from the application of the premium rates notified to the Financial Supervisory Authority, mentioned in the insurance policy and in the insurance premium payment document. (3) Regardless of the distribution channel used, the RCA insurer shall charge the same insurance premium based on the specific criteria of each policyholder. (4) RCA insurers/insurance intermediaries are prohibited from granting any collateral advantages to policyholders upon the conclusion of an RCA insurance policy, with the exception of voluntary insurance covering risks associated to the risks covered by the RCA policy. 9

10 (5) The application used in the sale points for the calculation of the insurance premium must consider all criteria established by the insurer in the premium rate. (6) The offer must contain the client-specific criteria which are used to determine the insurance premium, including the answers given by the prospective policyholder. (7) The insurer s offer shall be valid for a period of at least 3 days and must contain the following information: a) the total insurance premium resulting from the application of the premium rate, which shall be mentioned in the insurance policy; b) the commission paid by the insurer to the intermediary; the commission shall be expressed as absolute value and as percentage of the total insurance premium. The offer shall specify that the absolute value of the commission is determined by applying the percentage to the total insurance premium and that it is included in the total premium; c) the average direct purchase cost; it shall be specified on the RCA insurance policy as a percentage, specifying that it is included in the total insurance premium; d) the date up to which the offer is valid. (8) The provisions of this article are also mandatory for the website applications used by the insurers and intermediaries for the sale of RCA insurance. (9) RCA insurers may not conclude RCA insurance policies that become effective later than 30 days from their issuance date. Art (1) The insurance premium is calculated for an entire year of writing, according to the annual premium rates applied by the insurer, related to the validity period of the RCA insurance policy. (2) The annual insurance premium is calculated by aggregating the monthly premiums for each month of validity of the RCA insurance policy, the monthly premium being calculated as a ratio of 1/12 of the annual premium rate charged. Any period of time exceeding or equal to 15 calendar days is considered full month. (3) RCA insurers must perform, on a quarterly basis, analyses regarding the registered purchase costs and adopt the measures required to ensure the consistency of the purchase policies with the obligations assumed under the policies concluded. In order to protect the policyholders/injured parties, based on the analysis of reported indicators, the Financial Supervisory Authority may intervene by limiting the mediation commission. (4) RCA insurers shall specify, in any intermediation contract, the intermediary s obligation to collect the insurance premium related to the RCA policies in full in the insurer s account or, in the case of payments in cash, to transfer the insurance premium received in the insurer s account in full, no later than 5 working days from the collection date. Art (1) RCA insurers must set compensation limits which shall not be lower than the limits established by the Financial Supervisory Authority. (2) The compensation limits established by the Financial Supervisory Authority are as follows: a) in respect of the damages to property occurred in the same accident, regardless of the number of injured parties, the compensation limit shall be set, for accidents occurring starting from 2012, at EUR 1,000,000, in lei equivalent, at the exchange rate of the currency market at the time of the accident, communicated by the National Bank of Romania; 10

11 b) in respect of personal injury and death, including for non-material prejudices occurred in the same accident, regardless of the number of injured parties, the compensation limit shall be set, for accidents occurring starting from 2012, at EUR 5,000,000, in lei equivalent, at the exchange rate of the currency market at the time of the accident, communicated by the National Bank of Romania. (3) The compensation limits shall be revised every 5 years, depending on the evolution of the European Index of Consumer Prices (EICP) established in accordance with Council Regulation (EC) No 2494/95 of 23 October 1995 concerning harmonized indices of consumer prices. Art. 25. If more than one person were prejudiced in the same event and the total value of the prejudices exceeds the compensation limits specified in the RCA policy, the compensation shall be determined based on the share of the value of the prejudice, due to each person entitled to compensation for the prejudices sustained in the same accident. SECTION 2 Coverage Risks and Exclusions Art (1) The RCA insurer shall compensate the injured party for the prejudice incurred as a result of the accident caused through the use of the insured vehicle, according to the claims provided in the application for compensation, supported by any type of evidence. Without exceeding the compensation limits mentioned in the RCA insurance contract, if the insured event took place during the validity period of the RCA insurance policy, money compensation shall be granted for: a) personal injury or death, including for non-material prejudice; b) material damages; c) damages incurred by the lack of use of the damaged vehicle; d) court expenses incurred by the injured party. (2) Regardless of where the vehicle accident occurred - on public roads, on roads that are not open to public traffic, in premises and in any other places, both while moving, and during the stay of the insured vehicle, the RCA insurer shall grant compensation up to the compensation limit provided in the RCA insurance policy for: 1. the prejudice caused by the devices or installations installed on the vehicle, including for the prejudice caused further to the accidental detachment of the trailer, semi-trailer or the side-car pulled by the vehicle; 2. the prejudice caused by the fault of the insured vehicle s driver, including if, on the accident date, the driver: a) was driving the vehicle without the explicit or implicit consent of the policyholder; b) does not have a license to drive such vehicle; c) did not comply with the technical obligations regarding the condition and safety of such vehicle; 3. the prejudice caused by the thing itself, when the prejudice is caused by the characteristics or by the action or inaction of the vehicle, by another thing displaced by vehicle s movement, by the leaking, spilling or accidental fall of substances, materials or objects carried; 11

12 4. the prejudices caused as a result of the personal injury or death of the policyholder s family members or the driver s family members, except for the compensation claimed by the driver at fault for the accident; 5. the prejudices caused to third parties, as a result of opening the vehicle s doors, while driving or when the vehicle is stopped or stationary, by its passengers, without verifying that it does not endanger the safety of other traffic participants. Art. 27. The insurer shall not grant compensation for: 1. the cases where the vehicle s owner, user or driver at fault for the accident is not civilly liable, if the accident occurred: a) in a force majeure event; b) for the exclusive fault of the injured party; c) for the exclusive fault of a third party, except for the situations provided under Art. 26 Para (2) Item 5; 2. the prejudices caused to goods belonging to the vehicle driver responsible for the occurrence of the accident and those caused by the driver s personal injury or death, regardless of who claims such compensation; 3. the following situations: a) the prejudices were caused to goods belonging to natural or legal persons, if they were caused by a vehicle with RCA insurance, owned or used by the same natural or legal person and which is driven by an agent of the same legal person or by another person for whom the natural or legal person is responsible; b) the damaged property and the insured vehicle are part of the spouses community property; c) the damaged property is used by the owner of the insured vehicle that caused the damage; 4. the prejudices caused in the cases where the validity of the compulsory RCA insurance is not proven upon the occurrence of the event or the RCA insurer is not liable; 5. the part of the prejudice in excess of the compensation limits established by the RCA insurance policy, occurred in the same accident, regardless of the number of injured parties and the number of persons liable for the accident; 6. any fines and criminal expenses that the insured vehicle s owner, user or driver, responsible for the prejudice, would have to pay; 7. the expenses incurred in the criminal lawsuit by the insured vehicle s owner, user or driver, responsible for the prejudice, even if the civil part of the trial was also settled in the criminal lawsuit; 8. the amounts that the vehicle driver responsible for the prejudice must pay to the owner or user who entrusted the insured vehicle to him, for damaging or destroying the vehicle; 9. the prejudices caused to the goods carried, if upon the occurrence of the accident there was a contractual relationship between the owner or user of the vehicle that caused the accident or the driver responsible and the injured parties; 10. the prejudices caused to the persons or goods inside the vehicle that caused the accident if the insurer may prove that the injured parties were aware of the fact that the vehicle was stolen; 12

13 11. the prejudices caused by the devices or installations installed on vehicles when they are used as working installations or machinery; 12. the prejudices caused by accidents occurred during the loading or unloading operations, which represent risks of the professional activity; 13. the prejudices caused further to the transport of hazardous products: radioactive, ionizing, flammable, explosive, corrosive, combustible products, which caused or aggravated the prejudice; 14. the prejudices caused by the use of a vehicle during a terrorist attack or a war, if the event is directly connected with such attack or war; 15. any claims regarding the reduction of the goods value further to the repair. Art (1) If the injured party contributed, by his fault, to the occurrence of the accident or the increase of the prejudice, the person held liable shall only answer for the part of the prejudice ascribable to him the common fault. In such situations, the extent of the liability of each person shall be that attested by any evidence. (2) If the extent of the liability of each person cannot be determined, it shall be established as equal shares, by reference to the number of parties involved in the accident, each party being entitled to receive compensation in the proportion in which such party was not responsible for the accident. SECTION 3 Validity period of the insurance against civil liability in respect of the use of vehicles Art (1) The RCA insurer s liability commences: a) on the day following the expiry date of the previous insurance policy, for the policyholder that fulfils its obligation to conclude the insurance no later than the last day of its validity period; b) on the day following that when the insurance document was concluded, for the persons that did not have a compulsory RCA insurance valid upon the conclusion of the insurance; c) upon the issuance of the insurance document, but not sooner than the entry into force of the temporary circulation authorisation or the registration of the vehicle, for vehicles that were sold and are to be registered. (2) In the case of transfer of a vehicle based on civil acts under private signature, for which there is a valid compulsory RCA insurance, such insurance shall remain in force until the new owner acquires the capacity as holder of the vehicle registration. Where the new owner has a compulsory RCA insurance issued in its name, it will be considered valid even if the registration procedure in its name was not performed. Art The RCA insurer's liability shall cease at hours of the last validity day mentioned in the RCA insurance policy or prior to such date upon the deregistration from the traffic records or on the date when the policyholder submits to the insurer documents attesting to the transfer of the ownership right over the insured vehicle. Art (1) For vehicles deregistered from the traffic records or for which the insured person transfers the ownership right during the insurance period, the insurance premium in 13

14 respect of the period between the commencement date and the expiry date of the RCA insurer's liability is calculated by aggregating the monthly premiums established in the RCA insurer s premium rates corresponding to the number of full months of insurance included in the validity period of the insurance. Any fraction of a month is considered a full month. (2) In the situations referred to in Para (1), the insurer must return to the policyholder, within maximum 10 days from the latter s written request, accompanied by supporting documents, the difference between the insurance premium paid and that calculated as specified in Para (1), only if no compensation was paid or is owed for events occurred during the validity period of the insurance. Where the RCA insurer must pay compensation for events covered by the insurance policy, the insurer is entitled to recover from the policyholder the insurance premium returned to the latter upon request. Art If the policyholder fails to comply with the obligation to notify the RCA insurer of the amendments to the information contained in the insurance policy, relating to the vehicle and the owner or user thereof, the RCA insurer shall not have the obligation to return the difference of premium paid. SECTION 4 Establishing the liability in the case of the tractor-trailer/semitrailer group Art (1) The compulsory insurance against civil liability for prejudices caused by accidents of trailers/semitrailers has coverage only if they are not attached to a tractor vehicle. (2) If the event occurs while the trailer/semitrailer is attached to the tractor vehicle, the liability falls on the tractor vehicle. (3) The tractor vehicle s insurer must compensate the injured party, having however the possibility of exercising the right of recourse against the insurer of the trailer/semitrailer, if it can prove that the damage occurred due to a technical failure of the trailer/semitrailer, which could not have been noticed by the driver. (4) If the event occurs while the trailer/semitrailer is attached to the tractor vehicle, the compensation shall be borne, depending on the situations presented below, by: a) the insurer of the tractor vehicle, if the tractor vehicle is identified and insured, regardless of whether the trailer/semitrailer is or is not identified or insured; b) The "Street Victim Protection Fund" Association or the national bureau of the State in which the tractor vehicle is normally based, for vehicles registered in other States, if the tractor vehicle is identified and uninsured, regardless whether the trailer/semitrailer is or is not identified or insured; c) the trailer/semitrailer s insurer, if the tractor vehicle is unidentified, and the trailer/semitrailer is identified and insured; after the payment of compensation, the trailer/semitrailer s insurer has the right of recourse against the person responsible for the accident and, where appropriate, against the insurer of the tractor vehicle, should they be identified subsequently; d) The "Street Victim Protection Fund" Association, if the tractor vehicle is unidentified and the trailer/semitrailer is identified and uninsured. 14

15 SECTION 5 The policyholder s obligations Art (1) The policyholder must inform, as soon as possible, the RCA insurer of the event and specify the circumstances relating to such event and, during the investigation relating to such event, proceed according to the instructions received from the insurer. (2) The policyholder must notify, as soon as possible, the RCA insurer in writing of the fact that: a) the injured party requested compensation from it; b) the criminal or administrative proceedings were taken against it in connection with the occurred event and it has to immediately inform the RCA insurer regarding the evolution of such proceedings and their result; c) the injured party exercised its right to compensation by submitting an application to a court of law or any other authority, if the policyholder becomes aware of such fact; d) the information mentioned in the RCA insurance policy were amended during the insurance validity period. Art The policyholder must, within the shortest time, provide the injured party, at its request, with any information necessary to file for compensation, in particular the name and surname and place of residence of the person who was driving the insured vehicle at the time of the damage; the name, surname and place of residence or the name and address of headquarters of the vehicle s owner or user; the name, head office of the insurer that issued the RCA insurance policy, the series and number of the RCA insurance policy, as well as the registration number of the insured vehicle or its identification number. SECTION 6 Compensation Art The injured party is entitled to submit the claim report to the RCA insurer in the event of a risk covered by the compulsory RCA insurance according to these rules, or to the "Street Victim Protection Fund" Association, in the event of a risk covered in this fund, according to Art of Law No. 32/2000, as subsequently amended and supplemented, or to BAAR, in its capacity as managing office. Art (1) Within no more than 3 months after reporting the insured event by the injured party or by the policyholder, the RCA insurer must: a) either respond to the applicant, by filing a written offer for compensation, justified, transmitted with acknowledgement of receipt, if the policyholder's liability in the occurrence of the risks covered by compulsory RCA insurance is proven, and the prejudice was quantified; b) or notify the injured party in writing, with acknowledgement of receipt, of the reasons for which it did not approve, in full or in part, the claims for compensation. (2) If within not more than 3 months after reporting the occurrence of the insured event by the injured party or by the policyholder, the RCA insurer failed to notify the injured party of the rejection of its claims for compensation, as well as the justification thereof, the RCA insurer must pay the compensation. 15

16 (3) The RCA insurer may conduct investigations on the occurrence of the accident, within the term referred to in Para (1), provided that it is not subject to investigations carried out by the competent public authorities, which are in progress. (4) The compensation shall be paid by the RCA insurer within maximum 10 days from the submission date of the last document necessary to determine the liability and quantify the prejudice requested in writing by the insurer, or from the date on which the insurer received a final court decision on the compensation amount it must pay. (5) The RCA insurer must issue to the policyholder/user, within 15 days from the registration of its request, a certificate concerning the losses recorded during the last 5 years of contractual relationships, or the absence of such losses. (6) The certificate regarding the recorded losses must contain the following information: the name of the policyholder, personal number code or sole registration code, data regarding the vehicle, the insurance policy number, validity period, the related bonus-malus class, the date of the registered event, the payment date of the compensation. Art If the RCA insurer fails to fulfil its obligations within the terms referred to in Art. 37 or it improperly fulfils them, including if it unjustifiably reduces the compensation, a 0.2% penalty shall be applied, calculated for each day of delay, for the entire amount of the compensation due or for the unpaid difference, which shall be paid by the insurer. TITLE II Technical rules on reporting, ascertaining of prejudices and payment of compensation CHAPTER I Reporting and ascertaining of prejudices Art (1) To cover the prejudices incurred as a result of vehicle accidents, in order to report the loss, the injured parties shall refer to the RCA insurer with whom the vehicle owner, responsible for the accident, concluded the compulsory RCA insurance, to the compensation representative office, to the "Street Victim Protection Fund" Association or to BAAR, in its capacity as managing office. (2) If any loss is reported in connection with the occurrence of an event insured under the RCA insurance policy, the responsible RCA insurer must open the loss file and ascertain the loss, notify in writing the injured party with regard to the documentation to be submitted for the settlement of the compensation claims and settle the claim within the legal term. (3) The insurer must register all documents submitted to the loss file. Art (1) If, to recover the material damage, the injured party refers to his property insurer, the ascertaining of the prejudices, the technological solutions adopted, as well as the method of establishing the amount of compensation, and the repair cost of the damaged parts or components or the replacement cost thereof, including the expenses with the materials, as well as those for the disassembly and assembly related to the repair and replacement required as a result of the prejudice caused by the vehicle accident shall be binding against the RCA insurer of the guilty person. 16

17 (2) If the provisions of Para (1) are complied with, the injured party's property insurer shall recover the compensation paid from the RCA insurer of the guilty person, and the RCA insurer may not reject such a request. (3) Any compensation difference resulting from the calculation modality of the maximum compensation amount, if justified, shall be covered by the voluntary insurance and may not be recovered from the guilty policyholder if the compensation paid from the voluntary insurance does not exceed the compensation limit that can be granted by the RCA insurer for the prejudices caused in the same vehicle accident as provided in the insurance policy. Art (1) The loss ascertaining report shall be prepared in two counterparts and shall be signed by all persons participating in the drafting thereof. (2) At the time of the ascertaining, the RCA insurer must release to the injured party a copy of the loss ascertaining report or a findings note indicating also the number of the file opened, the parts found damaged in the same accident, and the technical solutions adopted: replacement or repair, and the list of documents required to be submitted by the injured party to settle the loss file and make the payment. (3) Any objections of the parties regarding the prejudices found as well as the technical solutions adopted shall be recorded in the report or in an annexe thereto. Art (1) If by dismantling or repairing the damaged property additional damages which had occurred further to the accident and that could not be ascertained initially are found, an additional loss ascertaining report shall be prepared. (2) The RCA insurer must ascertain the losses that could not be ascertained initially within maximum 3 working days from the request. Art RCA insurers may also grant compensation if the injured party proceeded to repair the damaged vehicle, before the insurers ascertained the prejudices, if the circumstances and causes of the occurrence of the insured event, as well as the amount of prejudice are revealed by the documents contained in the file. In such cases, the value of the prejudices shall be established based on the data recorded in the amicable accident report, in the documents concluded by the police, by the fire brigade units or by other competent public authorities, on the documentation relating to the actual cost of the repairs performed, corroborated with the prices charged by specialised units, on the written statements of the parties involved in the accident and of the witnesses regarding the accident occurred, as well as on other evidence submitted, corroborated with insurer s own findings, as a result of the examination of the repairs performed to the vehicle and, as applicable, of the replacement of any damaged components or parts, as well as with the investigations in connection with the accident dynamics, its exact location, etc. In these cases as well the data found shall be recorded in the vehicle loss ascertaining report, which shall be signed by all the persons taking part in its preparation. 17

18 CHAPTER II Establishment of the compensation SECTION 1 General provisions Art. 44. The compensation shall be established in accordance with Art. 54 of Law No. 136/1995, as subsequently amended and supplemented, based on the RCA policy, in compliance with the legal provisions in force, based on the elements included in the form "Amicable Accident Report" or based on the documents issued by the persons competent to ascertain vehicle accidents, based on the notification or the loss ascertaining report prepared by the insurer and on any other evidence or by court decision. Art. 45. The compensation may be established if, the documents existing in the loss file - amicable accident report, documents issued by the persons competent to ascertain vehicle accidents, notifications, loss ascertaining report prepared by the insurer, or other evidence reveal the civil liability of the owner or driver of the insured vehicle in the occurrence of the prejudice, and the injured party provides evidence of the prejudice incurred. Art. 46. The compensation shall be established by court decision if: 1. compensation claims are filed for the lack of use of the damaged or destroyed property, for that part of the claim, with the exception of the lack of use of the means of transportation used by the injured party to conduct its activity and for which it holds license and authorisation, but only for the standard amount of time necessary to repair the damage to the means of transportation. The part of the claim relating to the lack of use shall be determined taking into account the rates for the transportation of goods or persons, charged by the injured party on the date of the prejudice. The burden of proof falls upon the injured party and shall be performed with supporting documents. 2. compensation claims are filed for: valuable papers, documents, manuscripts, jewels, precious stones, works of art, platinum, gold or silver items, postmarks, stamps, as well as for the disappearance or destruction of money; 3. the person liable for the prejudice, the causes and the circumstances related to the accident and the amount of the prejudice caused cannot be determined. Art. 47. If the vehicle accident is subject to criminal proceedings, the compensation shall be established amicably if: 1. according to law, the criminal action was settled or may be settled by the parties reconciliation; 2. although the decision of the criminal court is final and irrevocable, the civil compensation are to be established subsequently; 3. although the criminal action cannot be settled by the parties reconciliation: a) an indictment was issued and the injured party undertakes in writing to return immediately, in full or in part, the compensation received, depending on the decision of the criminal court regarding the deed, the perpetrator and the fault; b) or, the documents concluded by the public authorities reveal both their civil liability, the prejudices caused and the criminal liability of the driver who shall be prosecuted after the 18

19 completion of the ongoing investigations, and the injured party undertakes in writing to return immediately, in full or in part, the compensation received, depending on the decision of the criminal court regarding the deed, the perpetrator and the fault. Art In determining the compensation, in the event of damage or destruction of the property, the basis for the calculation shall be the claims made by the injured parties, taking into account the legal provisions regarding the coverage of the property damage, without exceeding their value at the time of the accident nor the compensation limits provided by the RCA insurance policy. Art If the compensation amount in the same vehicle accident exceeds, on the date of the accident, the compensation limit provided by the RCA insurance policy, excluding the expenses incurred with the civil trial, regardless of the number of injured parties and the number of persons liable for the prejudice, the compensation shall be granted within the limits of such amount, to each injured party proportionally to the ratio between the compensation limit provided under the insurance policy and the total amount of the compensation. SECTION 2 Establishment of compensation in case of personal injury or death Art. 50. Upon establishing the compensation in case of personal injury or death of persons, the following shall be considered: 1. in case of personal injury: a) the difference between the net income of the injured party, proved with fiscal documents, and the indemnity received from the funds of the legal or natural person where the employee conducts his activity and/or, where applicable, from the state social insurance budget, during the hospitalization and medical leave period; b) the average monthly net income obtained from activities carried out by the injured party, proved by supporting documents, in the case of persons who are not employees; c) the minimum gross base salary per economy, in the case of injured parties who are, at the time of accident, in the last year of study or qualification; d) any expenses occasioned by the accident expenses with the transportation of the injured party, with the treatment, with hospitalization, for recovery, for dentures, extra food, according to the medical prescriptions, proved by supporting documents, and which are not borne by the social insurance funds provided by the regulations in force; e) expenses with caretakers during the period of incapacity for work, if this is recommended by the medical certificate, but not more than the minimum gross base salary per economy; f) moral prejudices: in accordance with the legislation and jurisprudence in Romania; 2. in case of death: a) funeral expenses, including for the tombstone, as well as those incurred with the performance of religious rites, proved by supporting documents; b) body transportation costs, including those of embalming, proved by supporting documents, from the locality where the death occurred to the locality in which the funeral is to take place; 19

20 c) the net unrealised income and other expenses incurred from the date of the accident until the time of death, referred to in Item 1, if they were caused by the accident; d) moral prejudices: in accordance with the legislation and jurisprudence in Romania. SECTION 3 Establishment of compensation in case of damage or destruction of vehicles Art (1) The compensation for vehicles may not exceed the amount of the prejudice, the value of the vehicle at the time of the accident or the compensation limit provided in the RCA insurance policy. (2) Remaining value means the value of the parts of the vehicle remaining undamaged, which may be dismantled and capitalised, between 0.1% and not more than 25% of the value of the vehicle at the time of the accident. In case of a total loss, if the injured party provides evidence of the deregistration of the damaged vehicle and the full capitalisation thereof by a company that specialises in dismantling and recycling vehicles, the remaining value shall be that mentioned in the supporting fiscal documents issued by the company in question, without exceeding 25% of the value of the vehicle at the time of the accident. (3) The amount of the prejudice to vehicles is equal to the repair cost of the damaged components or parts or their replacement cost, including the costs of materials, as well as the disassembly and assembly related to the repairs and replacements required as a result of the prejudices caused by the vehicle accident, established based on the prices charged by the specialised units, plus the vehicle transportation costs and those incurred with the limitation of the prejudices, proved with supporting documents, according to Art. 53. (4) If the vehicle repairs require the payment of compensation before performing the repairs, the value of the prejudices shall be determined by taking into account the prices charged by the specialised units or provided in specialised vehicle loss assessment systems, for the manual labour related to the repair/replacement of the damaged parts, as well as for components, new replacement parts, and materials. (5) The prices charged by the specialised units used in establishing the amount of the prejudice may not be higher than the prices charged by the specialised units authorised by the vehicle manufacturers, namely the Romanian representatives thereof. (6) Specialised units means duly authorised legal persons whose object of activity includes the marketing of vehicles, parts, replacement parts and materials for them, except for those under a consignment regime, and/or the execution of maintenance and repair works to vehicles. (7) The cost of repairs performed on vehicles shall be established based on the documents issued by the specialised units. (8) If for some components or parts of the vehicle there are no prices charged by specialised units, their value as new shall be determined on the basis of the prices of specialised vehicle loss assessment systems for spare parts or, in their absence, by assimilation with the prices in the specialised vehicle loss assessment systems or with those charged by local specialised units for the components or parts of similar vehicles. (9) The compensation shall not exceed: a) the amount of the prejudice, the value of the vehicle upon the occurrence of the event or the compensation limit provided in the RCA insurance policy, in case of total loss, if the injured party provides evidence of repairing the vehicle; 20