Marius BULUGEA, General Manager, PAID: "Mayors should at least make people sign that they are aware about the compulsory home insurance"
 According to a set of studies conducted by international experts, the damages that would occur in the case of an earthquake similar to the one in 1977 would amount to EUR 4.8 billion, according to Marius BULUGEA, General Manager of PAID.
Also, the total exposure of Romania, considering the height of buildings and the materials they are constructed from is approximately EUR 105.6 billion. Out of that, the total value of the buildings in urban areas is EUR 60 billion, Bucharest accounting for more than EUR 12 billion.
According to PAID's data, until the 6th of October 2011 there were over 789,000 household mandatory policies written but the monthly issuance rate was significantly decreased after the 4th of august 2011 reaching 2,000 policies daily. 482,851 were written in the urban area and 306,245 in the rural one.
"I am convinced that people found out about this law. There are still some people who argue that there is no money for insurance or that they don't want to pay for the risk of floods because they are only exposed to earthquakes. This is the policy, there is still room for improvement, but we have to know that the Government will not allow this welfare receivers behavior to continue. We are talking about an obligation that the Romanian Government is highlighting through a law", said Marius BULUGEA.
"We have met with mayors and the national associations of towns and villages. It is true that the fine will not solve the insurance problem but the mayors should at least make people sign that they are aware of the law. This is the best campaign that they can run", BULUGEA added.
PAID is covered by reinsurance for EUR 300 million, a sum more than satisfactory for the current needs of PAID, said Marius BULUGEA. PAID currently has no retention of the risks. The reinsurers are SWISS Re, MUNICH Re, HANNOVER Re, LLOYD'S, PARTNER Re, SIRIUS and KILN.
Until the end of October PAID received 75 claims, out of which 32 have already been paid. The total value of paid claims reached EUR 80.000 and the value paid to insurance companies for handling the cases was EUR 2.200.
There are 6.2 million homes in the PAID data base which is expected to be complete in six months
PAID requested the support of the Ministry of Administration and Interior to obtain the complete list of homes for every village and town in the country. The procedure started on the 15th of June 2010 and, so far 2,400 towns delivered the data out of a total of 3,227. As a result, the PAID data base now has 6.2 million homes, which represents 74.3% of the 8.39 million homes in Romania.
Regarding the social welfare beneficiaries PAID signed a protocol with The National Agency for Welfare Distribution to identify those who have a home but receive minimum welfare. Presently, PAID received a list of 55,000 persons who will have home insurance paid by the Agency. Until the end of the year there will be another 22,000 people added to that list.
Author: Andreea IONETE
on 10.10.2011
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