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Full liberalization of tariffs for insurance premiums in the market of motor third party liability insurance was postponed from February 1, 2018 to July 1, 2019.

Full liberalization of tariffs for insurance premiums in the market of motor third party liability insurance was postponed from February 1, 2018 to July 1, 2019.

This is included in corresponding amendments to the Law on Compulsory Insurance of Civil Liability for Damage Caused by Motor Vehicles. The bill was adopted by the parliament at the end of last year and published in the Monitorul oficial. The author of this legislative initiative, deputy Corneliu Dudnic noted earlier that the Moldovan market is not ready yet for full liberalization of tariffs in the field of insurance of motor third-party liability. According to him, the experience of the countries of the region shows that, after full liberalization of tariffs for insurance premiums in the market of motor third-party liability, the largest players of the market went bankrupt, as this led to manipulation in the market and disloyal competition. In this regard, the deputy proposed to abolish the norm on the full liberalization of tariffs in Moldova from February 1, 2018, as this will lead to greater risks. He suggested that a phased liberalization of tariffs should be envisaged without specifying a specific time frame for full liberalization. The government gave a positive opinion on these changes, noting that the proposed amendments were useful, so as not to jeopardize the market of compulsory insurance of civil liability for damage caused by vehicles and protect the rights of consumers. At the same time, some deputies suggested that in the second reading they should set a clear date for the complete liberalization of the motor third party liability insurance market so that the cancellation of the date for full liberalization of tariffs in the field of motor third party liability insurance was not given an erroneous signal to external development partners that Moldova completely refused liberalization of this market. As a result, the term of full liberalization of tariffs for insurance premiums in the market of insurance of motor third-party liability was postponed from February 1, 2018 to July 1, 2019. Meanwhile, the National Commission for the Financial Market was instructed, before January 1, 2019, to develop normative acts for the application of standards law, according to which insurers will establish, in agreement with the insured, the amount of insurance premiums for compulsory motor third party liability insurance in accordance with regulatory enactments approved by the supervisory authority, and using the bonus-malus system developed by the Supervisory Authority. // 11/01/2018 – InfoMarket.

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