Romanian Insurers Owe EUR300M To Auto Repair Shops

"The delays in payment for the discount of services performed based on civil liability (RCA) and Casco insurance policies reach some EUR100,000 per shop, and Romania has 3,000 authorized auto repair shops. In these conditions, companies in the business are forced to take out bank loans to cover the costs of repairs," Muntean said.

He said 80% of insurance companies delay payments beyond the 15-day legal limit.

"If two years ago payment would be performed within 20 days, now the average interval of payment reaches 60 days," Muntean said, adding current legislation provides no sanctions against delayed payment.

ASSAI will hold Monday a protest rally in front of insurance market regulator CSA, accusing the authority of abusively increasing fees on RCA policies.

On the other hand, the regulator said the RCA policy fees are established solely by insurers, based on free competition, and they are later notified to the CSA.

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