The authority said in a statement that Euroins ought to revise all guidelines, procedures and norms on determining and paying damages, duly establish the amount of damages in accordance with valid regulations, observe deadlines for the payment of damages and notify clients of its decision to reject their damage claims.
It also said Euroins will be allowed to resume selling RCA policies only if it implements the measures imposed by ASF.
Following checkups, ASF noticed that Euroins breached the regulations on determining and paying damages, unjustly reduced the amount of damages registered in certain damage claim files and failed both to observe the deadline for the payment of damages and to notify the damaged parties of its decision not to pay damages.
On August 12, ASF said it applied a RON50,000 fine to the head of Euroins’ department for damage claim settlement, Stamov Bozhidar Stoyanov, revoked his license for the job and obliged the company to revise all damage claim files it had rejected.
In the first half of 2013, Euroins Asigurare-Reasigurare underwrote gross premiums of RON258.74 million on the RCA segment, holding a 21% on this segment. Gross damages paid by the insurer on the RCA segment totaled RON157.78 million in the mentioned period.
Euroins Romania is 92.3% owned by Euroins Insurance Group PLC (Bulgaria) and 7.7% controlled by several private individuals and legal entities.