► Updated concepts
▸ The term “vehicle” has been redefined so that the insurance obligation is based on clear technical criteria. Thus, a vehicle is deemed to be any self-propelled means of land transport that does not run on rails, having either a maximum design speed greater than 25 km/h or an unladen mass greater than 25 kg and a maximum design speed greater than 14 km/h, as well as any trailer intended to be used with such a vehicle, or a tram. Consequently, the MTPL insurance obligation may also extend to certain means of transportation that were previously outside the scope of regulation, such as electric scooters and electric bicycles. The new definition of a vehicle excludes wheelchairs or other similar vehicles used by persons with physical locomotor disabilities.
► Clarification of the concept of “use of the vehicle”
▸ The concept of “use of the vehicle” will include any use of the vehicle in accordance with its function as a means of transport at the time of the accident, regardless of its characteristics, the type of terrain on which it is used, or whether the vehicle was in motion or stationary at the time of the accident.
► The obligation to conclude an MTPL insurance contract and exceptions to this obligation
▸ The obligation to conclude an MTPL insurance contract concerns any vehicle that is usually based on the territory of Romania, regardless of whether it is subject to registration in Romania. Since the concept of “usually based” on the territory of Romania is not clearly defined, we anticipate that this new rule will create confusion in practice, leading to its inconsistent application by authorities and courts.
▸ Vehicles used exclusively in motor sports events and activities, including races, competitions, training sessions, tests, or demonstrations held within specially designated and restricted areas, may be exempted from the MTPL insurance obligation, provided that the event organizer or another party ensures, through another legal instrument, the coverage of any potential damages caused to third parties, including spectators and other persons present, but not necessarily the damages caused to participating drivers and their vehicles.
The obligation to cover damages caused through the participating vehicle must be at least equal to the minimum insured amounts established by law. The organizer is responsible for ensuring that the optional insurance or another coverage instrument is in place, and in their absence, liability rests with the organizer.
If the organizer is unable to cover the damages caused, its liability is transferred to BAAR, except for damages caused to the drivers and their vehicles, which will be compensated from the National Protection Fund. The expenses incurred by BAAR in such cases, together with the applicable legal interest, may be recovered from the event organizer or from the authority that issued the authorization to organize the event.
▸ In the case of vehicles intended for export, the MTPL insurance contract will be concluded for the duration of the validity of the export registration plates, without being limited to 30 days as provided under the previous regulation.
► Updating the minimum MTPL liability limits in accordance with European standards
▸ The normative act establishes the new minimum compensation limits covered by MTPL insurance, in accordance with European Union requirements. For material damages caused in a single accident, regardless of the number of persons affected, the limit is RON 6,434,740 , while for bodily injuries, deaths, and non-material damages, the limit rises to RON 31,926,210. Failure to comply with these limits will be sanctioned by written warning orfine ranging from RON 50,000 to RON 500,000, and in the case of individuals in the management of MTPL insurers or those holding key or other critical positions within them, by written warning or fine ranging from RON 10,000 to RON 100,000.
▸ The Financial Supervisory Authority (A.S.F.) has the authority to revise these limits through its own regulations, in accordance with the delegated acts issued by the European Commission, thereby ensuring the continuous alignment of the national framework with the European legislative developments.
► Suspension of the effects of the MTPL insurance contract – additional rights for policyholders
▸ The new regulation also introduces changes regarding the procedure for requesting the suspension of the MTPL insurance contract by the insured during the suspension of the vehicle’s registration. During the suspension of the MTPL contract, the vehicle must be kept immobilized in a private space, outside public areas, and failure to comply with this condition constitutes a breach of the insurance obligation. However, unlike the previous regulation, it is no longer necessary to submit the registration plates to the issuing authority. Breach of the insurance obligation, including in the case mentioned above, constitutes an administrative offense and is punishable by fine ranging from RON 1,000 lei to RON 2,000 and by the retention of the vehicle's registration certificate until the document proving the conclusion of the insurance for registered vehicles is presented.
▸ The insurer is obligated to communicate the suspension within 5 days of the insured’s written request, and the insured may choose either to extend the policy’s validity by the suspended period or to receive a pro-rata refund of the premium difference, provided that no claims occurred during the MTPL contract period for which compensation has been paid or is due. Failure to comply with these obligations, as well as with those regarding the right of the injured party to freely choose the repairs provider without restrictions or coercion from the MTPL insurer, will be sanctioned by written warning or fine ranging from RON 50,000 to RON 500,000, and, the individuals holding management or key or other critical positions within the MTPL insurers, by written warning or fine ranging from RON 10,000 to RON 100,000.
▸ The suspension of the MTPL contract takes effect only from the date the insurer receives the insured’s written request, but not earlier than the date of the vehicle’s registration suspension, in accordance with applicable law. This measure is valid exclusively for the duration of the registration or the right to circulate’s suspension.
► Transparency in the use of claims history
▸ BAAR or the MTPL insurer will be required to issue and send the insured the certificate regarding the claims history within 15 days as of receiving its request. This certificate will reflect the claims recorded over the last 5 years of contractual relationships, or their absence.
▸ Insurers are required to publish on their own websites information regarding the policies they apply for the use of the claims history certificate in calculating the insurance premium.
▸ Claims history certificates issued by other European Union member states are granted the same treatment as those issued within Romania, and discrimination or surcharging of insured persons based on nationality or the member state of origin, due to prior residency, is prohibited.
▸ Failure to comply with these obligations will be sanctioned by a written warning or fine ranging from RON 50,000 to RON 500,000, and the individuals holding management or key or other critical positions within MTPL insurers, by a written warning or fine ranging from RON 10,000 to RON 100,000.
► Modern mechanisms for insurance verification and data protection
▸ The existence of MTPL insurance can be verified electronically, without stopping the vehicle in traffic. At the same time, safeguards are established to protect personal data processed in this context, in accordance with European legislation (GDPR).
► Amendments regarding BAAR
▸ BAAR will be required to publish and continuously update on its website information regarding the steps necessary to obtain from BAAR the amounts due to injured parties.
▸ In all cases where a person contacts BAAR directly, BAAR, based on the information received from the injured party, will provide a reasoned response regarding the payment of compensation.
