he Confederation of Authorised Carriers and Operators in Romania (COTAR) demands the application of the bonus/malus system for all policyholders, including individuals, COTAR President Vasile Stefanescu told AGERPRES on Thursday.

"The ASF [Financial Supervisory Authority] refers only to freight transport. We have taken as a reference the transport of goods because it is the largest, but we referred to all commercial transport, as well as individuals. The reference tariff, as long as it includes absolutely all expenses, both for individuals and legal entities, but also the 5% profit share, you cannot now take into account only one category," said Stefanescu.

He said that individuals have so far not benefited from the application of the bonus-malus system, and from year to year the rate for the Motor Third Party Liability Insurance policy has increased, although some drivers are included in the bonus classes.

According to the ASF's Motor Third Party Liability Insurance (MTPL) Guide, the bonus-malus system is regulated by rules issued by the Authority and was introduced as a measure to make road users more responsible. This system aims to ensure that prudent vehicle owners do not pay the same insurance premium as those who cause accidents.

The bonus-malus system influences the insurance premium according to the damage recorded in the reference period. If no claims were paid during the reference period, the insured will receive a bonus or a reduction in the insurance premium when renewing the MTPL policy. In the case where claims have been paid during the reference period, the insured will be penalised by a malus, namely an increase in the insurance premium, when renewing the MTPL policy.

According to the quoted source, ASF representatives have had, over the last few days, several rounds of discussions and consultations with representatives of Romanian carriers and insurance companies.

"The Authority has thus created a broader framework for analysis and identification of concrete and sustainable solutions necessary to solve the problems faced by the transport industry in relation to MTPL policies," the press release mentions.

At the same time, together with the dialogue partners, the ASF has considered all possible approaches in response to the carriers' requests.

Among the measures aimed at reducing the financial burden on MTPL policyholders are: the possibility of suspending the effects of the MTPL contract while the vehicle is not in use, with its validity extended by the period during which it was suspended; payment of the MTPL premium in instalments regardless of its level, both for individuals and for legal entities, with the option of payment in instalments belonging to the potential insured; reviewing the way the MTPL premium rate is set for contracts concluded for periods of less than 12 months, so that there are no longer such large differences between annual and sub-annual policies.

Following the discussions, also underlined was the need for the Romanian Bureau of Motor Insurers (BAAR) to analyse and find solutions regarding the status of the high risk insured. AGERPRES (RO - author: George Banciulea, editor: Oana Tilica; EN - author: Adina Panaitescu, editor: Cristina Zaharia)