Romania Insurance Information

CIA link to demographic/economic data on Romania

General Romania Insurance Information

• Compulsory Insurance:
  Third Party Automobile Liability
• Non-Admitted Insurance:
  Prohibited.
• Policy Wordings & Rates / Tariffs Controlled:
  None.
• Policy Language:
  Romanian (but foreign languages OK)
• Types of Insurance Restricted to Government Institutions:
  None.
• Policy Currency:
  "new" lu (RON) was introduced in 2005; "old" lu (ROL) was phased out in 2006; note - because of currency revaluation, 10,000 ROL = 1 RON
• Currency Restrictions / Exchange Controls:
  None at present.
• Policy Period:
  Annual but short term available.
• Cancellation Provisions:
  30 days.
• Premium Taxes, etc. paid by Insured:
  None known at present.
• Insurance Companies:
  Foreign insurers must have a joint venture with a local company (in fact the foreign company can own any % except 100%). Insurers need only be capitalized to US$100,000 per class (minimum 3 classes).
• Brokers:
  
• Brokerage Commissions:
  
• Broker of Record Letters:
  
• Reinsurance:
  The law states that outwards reinsurance is only allowed if it cannot be placed locally. Most local companies keep a small portion and reinsurance the balance (anything to avoid looking like a pure ‘fronting’ company). Little Knowledge and lack of capacity results in very little reinsurance business being written in Romania.
• Local Natural Hazards:
  Earthquake (real exposure), Flood
• Other Information:
  

Property Insurance

• Fire:
  Standard forms follow Munich Re conditions usually. Law 136 (in effect since February 1, 1996) eliminated compulsory fire insurance. All insurers have their own forms/conditions.
• All Risk:
  Again, follows Munich Re wordings especially for CAR.
• Coinsurance:
  Available for large risks.
• Blanket Insurance:
  
• Business Interruption:
  
• Replacement Cost:
  
• Discount for fire protection equipment / systems:

Boiler & Machinery / Machinery Breakdown / Engineering

• Wordings:
  

General / Public Liability

• Comments:
  Insurers have wordings but the coverage is rarely ever used except for foreign companies operating in Romania.

Automobile / Motor

• Comments:
  Third Party Automobile Liability compulsory.

Workers’ Compensation

• Comments:
  There are no State Schemes. Court awards being small mean that no one bothers with insurance. Employer’s Liability is rarely written and then usually only for foreign companies operating in Romania.

Marine

• Available Wordings:
  Usual London Institute Clauses and Institute Hull Clauses.

Crime

• Available Coverages:
  Theft and Burglary forms available – each company has its own conditions. Fidelity and Surety are not used much in this market. Directors’ & Officers’ Liability
• Became compulsory in 2006