Auto Insurance Bureau paid over 13 million Euro in compensation for uninsured vehicles in 2017
The CEDAM Database, which includes the damage history of all vehicles insured in Romania, will be transferred from the Financial Supervisory Authority (ASF) to the Auto Insurance Bureau (AIB) by the end of July. The database will have a new name and new functions, meant to give more information about both cars and drivers.
Madalin Rosu, president of AIB, explained in a conference that the Bureau must have a closer relation with the police in order to have a complete database. “Today we have cases in which information from CEDAM does not match those from the police. We had cases when we found cars declared with total damage still circulating on the streets.”
The database is crucial for the auto insurance sector (RCA) and based on the information there the good drivers can get a discount up to 50 percnet, while those who were involved in accidents can be penalized up to 80 percent from the standard fare of the premium. Also, buyers of used cars will be able to get important info about the cars through a SMS, information like the mileage history or damage recorded by the vehicle.
AIB data show that Foreign Damages Office honored 1,386 repayment claims in 2017, worth RON 18.2 million and the total compensation was RON 13.6 million. A total of 981 claims were for accidents involving uninsured vehicles and the money paid should be recovered from the person guilty of the accident.
Regarding the activity of the Internal Damage Office, last year there were 4,512 claims, out of which 2,426 cases were approved for direct management by AIB and 2,086 claims were either submitted to the correspondent for claims handling compensation, or closed for various reasons. AIB also received 2,581 requests for repayment, totaling approximately RON 48.3 million.
The main attributions of BAAR, in accordance with Law 132/2017, are those of the National Auto Bureau (Green Card), compensation body, clearing body and information center. These include other tasks, such as the management of high-risk insured persons, the management of border assurance, and the development and management of the MTPL records database.
Source: Business Review