PAID general manager Marius Bulugea told a news conference Tuesday the home insurance policy was sold by insurer Astra on May 23 to a 88-year-old woman in Motca, Iasi county.
Homeowners are required to take out insurance against earthquakes, landslides and floods. The yearly premium for the policy sold by PAID is EUR10-20, depending on the type of building, and covers damages between EUR10,000 and EUR20,000. The first mandatory home insurance policies were issued in July 2010.
Under the law, a type A home’s frame is reinforced concrete, metal or wood and its walls are stone, burnt brick or other materials resulting from thermal/chemical treatment, while a type B home has walls of unburnt brick or other materials that have not undergone such treatment.
There are 1,744 homes in Motca, but PAID policies have been signed for only 67.
According to PAID, its portfolio includes 791,728 home insurance policies, of which 482,151 are type A home insurance policies and 309,577 type B home insurance policies.
The number of mandatory policies in PAID portfolio has dropped, as a significant part of the contracts that expired on July 15, 2011 were not renewed or homeowners opted for voluntary home insurance policies, said Bulugea.
He pointed out that the insurance policy renewal rate stands at below 20%.
PAID is a joint stock insurance-reinsurance company that manages the risk fund meant for paying damages in case of natural disasters. Its 13 shareholders are: ABC Asigurari, Astra Asigurari, ARDAF, Carpatica Asig, Certasig, City Insurance, Credit Europe Asigurari, Euroins Romania, Generali, Grawe Romania, Groupama Romania, Platinum Asigurari and Uniqa Asigurari.