Romanian insurers to recover from FGA all the payments made after ASTRA and CARPATICA bankruptcies
The High Court of Cassation and Justice of Romania (ICCJ) decided in favour of insurers regarding the application of RON 450,000 ceiling (~EUR 100,000) per insurer when recovering claims from ASTRA Asigurari and CARPATICA Asig following their bankruptcies informed the insurance news portal 1asig.ro.
As a result, FGA — The Insurance Guarantee Fund — will calculate the the payments on MoD LoB per debt, no longer per insurer. "Therefore, the ceiling of 450,000 lei should be applied on each debt, not on the entire portfolio of debts of an insurer, previously considered a creditor", informed 1asig.ro.
FGA representatives have stated for 1asig.ro, that they will comply with this decision, having sufficient funds to ensure the payment of the amounts related to the litigations that are pending.
Author: Andrei Victor
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