AFTER NOTIFYING THE UNJUSTIFIED INCREASE OF CAR INSURANCE POLICY RATES The association of auto repair shops requests increased oversight of the insurance business

After raising the issue of the unjustified increase of the rates for the auto civil liability insurance policy (RCA) for the year 2010, the Association of Independent Auto Repair Shops (ASSAI) proposes several measures for eliminating abusive practices and improving the protection of insurance policy holders, as well as some measures for improving the oversight and control of the Romanian insurance market.

ASSAI warned that over the course of the last five years, the RCA rates have increased over four times.

Backed by the Romanian National Council of Small and Medium Enterprises, of which it is a member, ASSAI also requests the "elimination of the abuse of policy holders by insurers who often refuse honoring insurance claims, by taking advantage of the precarious state of the policy holders". The Association also considers that there is a need to "create an adequate environment for a real partnership between the auto repair shops and the insurance companies, by following the good practices model of the EU member states".

ASSAI emphasizes the fact that the Insurance Surveillance Commission (CSA) did not do a good job of regulating the domestic insurance market, and amid the current economic crisis to the closing down of over 17% of the privately owned car repair shops, which led to over 10,000 jobs lost, putting additional strain on the public budget.

According to ASSAI, auto repair shops are directly affected by the way some insurance companies pay the claims after a long time, only pay part of the amount or sometimes outright refuse to compensate their customers, which requires stronger involvement from the Insurance Surveillance Commission.