Romanian President Signs Controversial Insurance Bill Into Law

Insurance companies involved in the mandatory home insurance system could lose over EUR30 million in premiums over this law, which could jeopardize the functioning of the system and could lead to higher premium prices.

The Chamber of Deputies, which was a the decider on this bill, adopted last month an amendment stating that homes already insured would not fall under the rules of the mandatory home insurance law. But the country’s insurance regulator had already passed a norm obliging homeowners to get mandatory home insurance which would cover up to EUR20,000 in damage claims, while the rest of the claims were to be covered by their voluntary insurance policy.

Under the law, homeowners have until January 15, 2011 to get mandatory home insurance or risk fines of 100 to 500 lei.