UNSICAR: RCA legislation is non-competitive, we’ll notify the EC if the law is approved

The National Union of Intermediation and Consultancies in Insurances from Romania (UNSICAR) will notify the the European Commission, the executive arm of the European Union, if the auto civil responsibility insurance (RCA) law is promulgated, claiming the piece of legislation harms competition.

„We consider that the new law is non-competitive, that on medium and long term, it will have an opposite effect. The oligopoly conditions of RCA will increase, which means that we’ll have a reduced quality of services and those who’ll be affected will be the ones who should get the damages due to an event on road. The new law is an organic one, that should be regulated in a balanced manner, all categories of actors from RCA market on medium and long term. Unfortunately, this law regulated on short term, an issue in the favor of a small segment of clients, with a very high damage rate and unfavors the biggest part of the RCA policies consumers, mainly individuals, ” said the UNSICAR president, Bogdan Andriescu.

The representatives of insurances brokers consider that only a high competition on RCA market will regulate the tariffs of this insurance and any artificial type of ceiling can result in the inappropriate protection of those who should benefit of the coverage of RCA policy.