RCA Insurance
Although RCA insurance is mandatory, not all insurance companies offer the same services. The consultants at DESTINE Broker can help you choose the right RCA insurer, so that when you are involved in a car accident for which you are at fault, you can be worry-free about the damage caused.
What is the RCA contract?
Compulsory third-party liability insurance for damages caused by vehicular accidents (RCA) is a contract concluded between the owner of a vehicle, an individual or legal entity, and an authorized insurance company. Based on this contract, the company that issued the RCA insurance policy pays compensation to third parties damaged because of an accident caused by the vehicle for which the policy was concluded, for material damages and/or death or bodily injuries, including moral damages, suffered in that accident.
Legislative Framework
The contractual conditions for RCA insurance are established by Law no. 132/2017 – regarding the mandatory auto civil liability insurance for damages caused to third parties through vehicle and tram accidents (published in the Official Gazette on June 12, 2017 that became applicable 30 days after the date of publication) and by the regulations of the Financial Supervision Authority (A.S.F.), issued in its application, Norm no. 20/2017 on car insurance in Romania (applicable starting August 1, 2017). The form and content of the RCA contract are established by the regulations of the A.S.F.
Legislative Framework
The contractual conditions for RCA insurance are established by Law no. 132/2017 – regarding the mandatory auto civil liability insurance for damages caused to third parties through vehicle and tram accidents (published in the Official Gazette on June 12, 2017 that became applicable 30 days after the date of publication) and by the regulations of the Financial Supervision Authority (A.S.F.), issued in its application, Norm no. 20/2017 on car insurance in Romania (applicable starting August 1, 2017). The form and content of the RCA contract are established by the regulations of the A.S.F.
Availability of the RCA contract
RCA contracts can be concluded for a period between one and 12 months, in multiples of one month, depending on the option of the insured.
By way of exception, the RCA contract can be concluded for less than one month in the following situations:
- for vehicles registered in other member states of the European Economic Area and the Swiss Confederation when insurance is requested for import to Romania, for a maximum period of 30 days from the date of acquisition of the property, proven with supporting documents.
- for vehicles intended for export, for a maximum of 30 days.
- for vehicles that are provisionally authorized for circulation, for periods of 30 days, but cumulatively no more than 90 days.
Where do I benefit from the RCA contract?
- On the Romanian territory.
- On the territory of the member countries of the International Green Card System registered in the RCA policy.
Covered risks:
- bodily injuries and/or death including non-patrimonial damages.
- material damage.
- damages caused due to the lack of use of the damaged vehicle, including the temporary replacement of the vehicle, based on the option of the injured person.
- court fees incurred by the injured person or related expenses in the case of an alternative resolution of the dispute if the solution is favorable to the injured person.
- the expenses related to the transport of the damaged vehicle, belonging to the damaged third party, from the scene of the accident to the location of the damage assessment center, to the repair unit chosen by the damaged party to repair the vehicle, the one/closest to the place of the accident or the residence of the injured person, depending on the case, if said vehicle can no longer move by its own means, and the insurer does not provide transport.
The compensation limits established by the Financial Supervisory Authority are:
- for material damage caused in the same accident, regardless of the number of injured individuals, the compensation limit is set at a level of 1,220,000 euros.
- for bodily injuries and deaths, including non-patrimonial damage caused in the same accident, regardless of the number of injured individuals, at a level of 6,070,000 euros.
Not insured:
- breakdowns and damage to your vehicle.
- vehicles used exclusively for legally organized training, races, competitions, or rallies.
Malus bonus system
It provides the determination of RCA insurance premium rates depending on the insured’s history regarding damages caused in a certain reference period.
In other words, those who cause damage will pay more for RCA insurance and those who do not cause any damage will be rewarded by getting a discount for the RCA premium.
As of August 1st, 2017, according to ASF Norm 20/2017, a new bonus-malus system was added. The bonus-malus system consists of the basic category B0, 8 bonus classes, and 8 malus classes; class B0 is assigned to a new insured with no insurance history. The reduction or increase established according to the bonus-malus system is applied to the rates charged by the RCA insurer when the potential insured signs the RCA contract, in effect since the RCA contract is signed. Each separate class corresponds to a certain percentage reduction or increase in the premium rate for RCA insurance according to the table below:
Malus bonus system
It provides the determination of RCA insurance premium rates depending on the insured’s history regarding damages caused in a certain reference period.
In other words, those who cause damage will pay more for RCA insurance and those who do not cause any damage will be rewarded by getting a discount for the RCA premium.
As of August 1st, 2017, according to ASF Norm 20/2017, a new bonus-malus system was added. The bonus-malus system consists of the basic category B0, 8 bonus classes, and 8 malus classes; class B0 is assigned to a new insured with no insurance history. The reduction or increase established according to the bonus-malus system is applied to the rates charged by the RCA insurer when the potential insured signs the RCA contract, in effect since the RCA contract is signed. Each separate class corresponds to a certain percentage reduction or increase in the premium rate for RCA insurance according to the table below:
Direct settlement clause
Direct settlement is an auxiliary claims management service provided by RCA insurers to their policyholders. In other words, your RCA insurer handles the payment to the car repair shop that will fix your vehicle directly, without needing the intervention of the insurance company of the driver who injured you. This makes the entire claim resolution process faster and easier.
Direct settlement between RCA insurers is regulated by Law 132/2017, art. 26, and is applicable upon cumulative fulfillment of the following conditions:
a) car accidents that occur on the territory of Romania.
b) the vehicles involved in car accidents are registered in Romania.
c) damage caused exclusively to vehicles.
d) both vehicles involved in the car accident have valid RCA insurance on the date of the event.
e) damage excludes bodily injury.
The direct settlement service is mandatorily offered by the insurer, but its purchase is optional for the insured.
Exclusions:
The RCA insurer does not grant compensation for:
The RCA insurer does not grant compensation for:
a) cases in which the owner, user, or driver of the guilty vehicle has no civil liability if the accident occurred:
(i) in case of force majeure.
(ii) due to the exclusive fault of the injured person.
(iii) due to the exclusive fault of a third party, apart from damages caused to third parties because of opening the vehicle doors, while driving or when the vehicle is stopped or parked, by its passengers, without making sure the safety of other traffic participants is not endangered.
b) the damages caused to the goods belonging to the driver of the vehicle responsible for the accident, as well as those caused because of his bodily injury or death, regardless of who requests these compensations.
c) in the following situations:
(i) the damages were caused to goods belonging to individuals or businesses if they were caused by an RCA-insured vehicle, owned or used by the same individual or business and that is driven by a subordinate of the same legal entity or by another person for whom the individual or business is responsible.
(ii) the damaged property and the insured vehicle are part of the joint patrimony of the spouses.
(iii) the damaged good is used by the owner of the insured vehicle, which caused the damage.
d) damage caused in situations where there is no proof of validity for the RCA insurance at the date of the accident or the RCA insurer is not liable.
e) the part of the damage that exceeds the liability limits established in the RCA contract, produced in the same accident, regardless of the number of injured people and the number of people responsible for causing the damage.
f) fines of any kind and criminal expenses for which the owner, user, or driver of the insured vehicle is responsible when causing damages.
g) expenses incurred in the criminal process by the owner, user, or driver of the insured vehicle, responsible for causing the damage, even if the civil side was also settled in the criminal process.
h) the sum of money that the driver of the vehicle, responsible for causing the damage, is obligated to pay to the owner or user who entrusted them with the insured vehicle, for the damage or destruction of the vehicle.
i) damages caused to transported goods if, at the time of the accident, there was a contractual relationship between the owner, user of the vehicle, or the responsible driver that caused the accident and the injured people.
j) damages caused to people or goods transported in the vehicle that caused the accident if the RCA insurer can prove that the injured people knew that the respective vehicle was stolen.
k) damages caused by devices or installations mounted on vehicles, when they are used as work equipment or installations, constituting risks of professional activity.
l) damage caused by accidents that occurred during the loading and unloading operations, constituting risks of the professional activity.
m) damages caused due to the shipping of dangerous products: radioactive, ionized, flammable, explosive, corrosive, and/or combustible products that determined or aggravated the damage.
n) damages caused by using a vehicle during a terrorist attack or war if the event is directly related to that attack or war.
Exclusions:
The RCA insurer does not grant compensation for:
The RCA insurer does not grant compensation for:
a) cases in which the owner, user, or driver of the guilty vehicle has no civil liability if the accident occurred:
(i) in case of force majeure.
(ii) due to the exclusive fault of the injured person.
(iii) due to the exclusive fault of a third party, apart from damages caused to third parties because of opening the vehicle doors, while driving or when the vehicle is stopped or parked, by its passengers, without making sure the safety of other traffic participants is not endangered.
b) the damages caused to the goods belonging to the driver of the vehicle responsible for the accident, as well as those caused because of his bodily injury or death, regardless of who requests these compensations.
c) in the following situations:
(i) the damages were caused to goods belonging to individuals or businesses if they were caused by an RCA-insured vehicle, owned or used by the same individual or business and that is driven by a subordinate of the same legal entity or by another person for whom the individual or business is responsible.
(ii) the damaged property and the insured vehicle are part of the joint patrimony of the spouses.
(iii) the damaged good is used by the owner of the insured vehicle, which caused the damage.
d) damage caused in situations where there is no proof of validity for the RCA insurance at the date of the accident or the RCA insurer is not liable.
e) the part of the damage that exceeds the liability limits established in the RCA contract, produced in the same accident, regardless of the number of injured people and the number of people responsible for causing the damage.
f) fines of any kind and criminal expenses for which the owner, user, or driver of the insured vehicle is responsible when causing damages.
g) expenses incurred in the criminal process by the owner, user, or driver of the insured vehicle, responsible for causing the damage, even if the civil side was also settled in the criminal process.
h) the sum of money that the driver of the vehicle, responsible for causing the damage, is obligated to pay to the owner or user who entrusted them with the insured vehicle, for the damage or destruction of the vehicle.
i) damages caused to transported goods if, at the time of the accident, there was a contractual relationship between the owner, user of the vehicle, or the responsible driver that caused the accident and the injured people.
j) damages caused to people or goods transported in the vehicle that caused the accident if the RCA insurer can prove that the injured people knew that the respective vehicle was stolen.
k) damages caused by devices or installations mounted on vehicles, when they are used as work equipment or installations, constituting risks of professional activity.
l) damage caused by accidents that occurred during the loading and unloading operations, constituting risks of the professional activity.
m) damages caused due to the shipping of dangerous products: radioactive, ionized, flammable, explosive, corrosive, and/or combustible products that determined or aggravated the damage.
n) damages caused by using a vehicle during a terrorist attack or war if the event is directly related to that attack or war.
The liability of the RCA insurer begins:
a) from the following day of the previous RCA contract expiration date for the insurer who fulfills their obligation to sign a new policy, at the latest on the last valid day of the previous contract.
b) for people who did not have an available RCA policy when they signed the contract – the following day after signing the RCA contract.
c) in the case of sold vehicles that are not yet registered – from the moment the insurance contract is issued but not earlier than the start date for the provisional driving license or for the registration of the vehicle.
The RCA contract ends when:
a) the owner of the vehicle notifies the RCA insurer, with supporting documents, that the ownership of the vehicle changed.
b) the vehicle was removed from circulation.
c) the RCA contract expires.
d) the insurer exercises their right to terminate the RCA contract due to unpaid premiums (when the RCA contract includes a clause that states the insurance needs to be paid in installments).
