RCA permite unor service-uri auto sa factureze cat vor, cum vor si ce vor.
Source: Financiarul.ro
Challenges in the Current RCA Legislation
The existence of the RCA Law today is undeniable, yet it remains in dire need of revisions and updates that have not been implemented thus far. This situation has raised concerns from both industry stakeholders and the European Commission, as it poses a risk of infringement. The application rules of the RCA Law allow third parties, such as auto repair shops, to charge arbitrary amounts for their services. Consequently, the average repair cost has soared to over 8,300 lei, as stated by Madalin Rosu, president of BAAR – the Bureau of Automobile Insurers in Romania, during the International Insurance-Reinsurance Forum (FIAR).
Unresolved Questions and Rising Costs
Rosu expressed several pressing questions directed at the Financial Supervisory Authority. „Why has the secondary legislation not been amended despite the increasing severity of these discrepancies? Just a few weeks ago, I received a rental car invoice from a Romanian auto service amounting to 15,000 euros, exceeding the car’s value. Perhaps moving forward, it would be more cost-effective to replace the damaged vehicle rather than repair it,” he remarked.
Impact on Consumers and Industry Dialogue
Every RCA policyholder ultimately bears the burden of these escalating costs, which amount to hundreds of millions of euros in damages. Unfortunately, the recent trend shows that the dialogue between insurers and consumers has shifted towards a select group of auto services in Romania, rather than addressing the broader consumer base, Rosu added.
Consumer Preferences and Legislative Limitations
He referenced a study conducted by IRES, revealing that 28% of Romanians prefer to have their vehicles repaired at a partner service of their insurance company. However, current legislation prohibits insurers from recommending specific auto services. Additionally, 20% of respondents indicated a preference for direct compensation based on an offer from their insurer. This self-management approach has faced significant criticism from independent auto services in Romania. Only 13% of individuals would choose to repair their vehicles at a dealership, while a mere 7% would opt for a multi-brand auto service. Thus, the services engaged in dialogue with insurers represent only a small fraction of the population, leading to legislative changes that favor a select few.
Urgent Need for Reform in the Insurance Market
We find ourselves at a critical juncture where the Romanian insurance market is experiencing continuous losses, and the number of uninsured individuals is gradually increasing. Action is imperative. Shouldn’t the Competition Council also raise pertinent questions regarding legislation that favors one segment at the expense of another? Rosu further argued that the RCA legislation protects certain auto services that charge victims exorbitant rates for rental cars, sometimes up to 400 euros per day, creating an unfair competitive landscape for companies whose core business is renting cars at rates of 30, 50, or 70 euros per day, depending on the vehicle. „Where is the fair competition? We all pay for these excesses out of our own pockets,” Rosu concluded.
Source: wall-street.ro
