2024-03-22 16:16:00
The General Directorate of Police of the Municipality of Bucharest wants to conclude a 2-year framework agreement for the purchase of compulsory car insurance (RCA/Green Card) for a minimum number of 398 and a maximum of 4,430 vehicles and motorbikes, contract estimated at over 8, 7 million lei (without VAT), shows an auction announcement. The police demand that the prices are not increased during the entire period of the framework agreement and that they be approved by the ASF. In response, the Authority says it does not approve the RCA prices offered by insurers, which is prohibited by EU law.
Police carsPhoto: Vlad Ispas / Dreamstime.com
Tender notice was published on Friday in the Electronic System of Public Procurement.
The General Directorate of Police of the Municipality of Bucharest imposes as a mandatory requirement, in the specifications, that “prices for RCA-Green Card policies be approved by the ASF”.
Another mandatory requirement is that “The level of insurance premiums, established by the contract to be concluded, must not be the subject of any increase during its entire validity period, except for situations imposed by law.”
In the final provisions, the Police specify: “the price of RCA insurance for all types/brands of vehicles included in the offer (by category, cylinder capacity) will remain at the same value throughout the validity period of the framework agreement.”
2 years agothe police awarded a similar contract, also for 2 years, to Fast Brokers.
In this specification, it was not required that the prices be approved by the ASF, but only that: “the level of insurance premiums, established by the contract that will be concluded, must not be subject to any increase during its entire validity period , except in situations imposed by law.”
How is it possible that the price of RCA has not been increased for 2 years?
- “RCA contracts can be concluded for a maximum of 1 year. Separately from the RCA contracts, an understanding/a contract/agreement can be concluded that establishes others, such as: monitoring by the insured, through telemetry systems, of the way the vehicle is used; maintaining the tariff when the policy is extended, etc.”, a source from the insurance industry explained to HotNews.ro.
ASF says it is prohibited by EU law from approving or intervening in prices operated by insurers
HotNews.ro has asked the Financial Supervisory Authority (ASF) to specify whether insurers have any obligation to transmit RCA rates applied and whether ASF has the leverage to approve or reject these rates, as requested by the Police in the specifications.
- “There are, as is normal, periodic reports that have a statistical purpose and are necessary in the surveillance activity.
- ASF does not approve the RCA prices offered by insurers, according to Directive 2009/138 (Solvency II).
- Moreover, a possible involvement of the ASF, in this sense, would lead to the opening of the infringement procedure”, stated the ASF officials.
On Friday, HotNews.ro requested a point of view regarding these requirements from the specifications and the General Directorate of Police of the Municipality of Bucharest, and we will return with answers as soon as we receive them.
Photo source: Vlad Ispas / Dreamstime.com
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