MTPL became more expensive, but remains much cheaper than in EU
Information circulated by the media lately is talking about alarming increases of the MTPL tariffs.
Allegations relate to the fact that this increase is unjustified and that buying the MTPL policy should remain at the decision of the driver, without being imposed by the law.
Still, what is the truth?
Firstly, let's consider the following scenario:
Ion POPESCU, pensioner, owner of a DACIA 1300 car from 1979, considers that his driving experience is enough to save him from the unpleasant events in traffic and decides not to renew its MTPL policy, thus saving some of the pension's money.
One rainy day, on the streets between the blocks, Mr. POPESCU does not correctly estimate the speed of an AUDI A8 from 2009 and does not give priority, engaging in a left turn. Following this incident, AUDI hits the DACIA, that bounces in a PEUGEOT 407 parked regularly. In this case, Mr. POPESCU is guilty for the whole accident.
Now, what are the chances that Mr. POPESCU can pay the claims caused by his lack of attention and what will happen once he is sued?
The guilty part is undoubtedly in a delicate situation and the role of an MTPL policy is quite obvious.
Regarding the rising prices, although we pay a more expensive MTPL, Romania has, at this point, the lowest price in the EU for this type of insurance. More precisely, if in Germany the average price for MTPL is around EUR 1,000, in Romania its value does not exceed EUR 90. Even the Bulgarian neighbors, which we often compare with, as standard of living, pay about EUR 170/year for this product.
Besides this aspect, it is a fact that in recent years the Romanians began to travel more abroad with their personal cars, and since 2007, by signing any MTPL policy, a car owner also buys the Green card policy.
Also, the frequency of cases in which it is required to cover body injuries based on the MTPL policy is increasingly higher, values being much higher than in the case of material damage, and profile companies estimate that the evolution of this segment will be a quick one.
In this context, the CNA - Motor Insurance National Conference will be the framework in which specialists in the filed will discuss the guidelines for development and optimal solutions to face an adverse economic period, but also directions for making the profile market more profitable. The event will take place on March 4th this year, at the Parliament Palace.
Published on 25.02.2010
Comment this article