The MTPL is the compulsory motor third party liability insurance that third party injured in a car accident is compensated for, whether it is damage to motor vehicles, bodily injury, death or damage to property. This insurance is issued for all vehicles registered or subject to registration in Romania.
Known as “direct compensation” in GEO 54/2016 this notion is maintained in Law 132/2017 at Art. 26 under the name of “direct settlement” and will be optional for the insured. Direct settlement applies when the car accident occurred on Romanian territory between vehicles registered / registered in Romania and the damages are produced exclusively to vehicles and there are no bodily injuries and the vehicles have MTPL insurance that is valid at the moment of the event.
Risks covered by MTPL policy:
- personal injuries or death, including for non-patrimonial damage;
- material damage;
- damages as a consequence of failure to use the damaged vehicle;
- costs incurred by the injured party.
Compensation limits according to the legislation in force are:
- for damages caused in one and the same accident, irrespective of the number of injured persons, the limit of compensation is 1,220,000 euro, equivalent in lei at the exchange rate of the foreign exchange market at the date of the accident, communicated by the NBR;
- for personal injuries and deaths, including for non-property damages produced in one and the same accident, irrespective of the number of injured persons, the limit of indemnity is 6,070,000 euro, the equivalent in lei at the exchange rate of the foreign exchange market at the date of the accident, communicated by the NBR.
If more than one person was injured in the same event and the total amount of the damage exceeds the compensation limits specified in the RCA contract, the indemnity shall be determined by reference to the share of the amount of the damage to each person entitled to compensation for the damage suffered in the same accident.
The insurer’s liability begins:
- from the day following the expiration date of the previous RCA contract, for the insured who fulfills the obligation to terminate the insurance at the latest on the last day of its validity
- from the day following the one in which the RCA contract was concluded, for persons who did not have RCA insurance valid at the time of the new insurance
- from the moment of the issue of the insurance contract, but not earlier than the date of entry into force of the provisional movement authorization or registration / registration of the vehicle, for the marketed vehicles to be registered / registered
Termination of the MTPL contract
The MTPL contract ceases:
- at the date when the vehicle owner notifies the MTPL insurer of the ownership of the vehicle, accompanied by supporting documents
- at the time the vehicle is out of circulation
- at the time specified in the MTPL contract
Cancellation and termination of the MTPL contract
1. The MTPL contract shall be terminated if:
a) the insured risk has occurred or its production has become impossible before the MTPL insurer’s obligation arises;
b) the production of the insured risk became impossible after the birth of the MTPL insurer’s obligation.
2. In the cases provided for in paragraph (1) and art. 7 lit. a) and b), when the insured has paid in full or in installments the insurance premium, he is entitled to recover it proportionally with the unexpired period of the MTPL contract, if no compensation for events occurred during the period the validity of the insurance. In the event that the MTPL insurer is subsequently obliged to pay compensation for events covered by the MTPL contract, the MTPL insurer is entitled to recover from the insured the insurance premium reimbursed upon request.
3. The insured has the obligation to inform the RCA insurer about the conclusion of other MTPL contracts with other MTPL insurers and may opt to maintain a single MTPL contract. The right of option shall be exercised only once during a calendar year and may opt for the termination of contracts with the effective date following the conclusion of the first MTPL contract concluded.