Moldova to introduce large fines for insurance companies for failure to comply with the deadlines for concluding a CMTPL insurance contract.
In particular, failure of the insurer to comply with the legal deadlines for authorizing the application for the conclusion of the contract of compulsory motor third party liability (CMTPL) insurance will result in a fine for legal entities in the amount from 150 to 250 U.S. conventional units (from 7,500 to 12,500 lei). This is stipulated by the relevant amendments to the current legislation, passed by the parliament in the first reading. The draft law was elaborated in order to balance the relations between the insurance market participants and the beneficiaries of insurance services, as well as to avoid some commercial practices that may affect the interests of policyholders. The document refers to the amendment of the Law on CMTPL for damage caused by vehicles, the Law on insurance or reinsurance activity, the Civil Code and the Criminal Code of Moldova. According to the draft, the legislation will clearly establish the term for concluding the contract of CMTPL insurance - up to 3 working days from the moment of receiving the executed application. The document also establishes a mechanism for applying sanctions to insurance companies that do not comply with the term of settlement of the insured event established by law. The fine applied to legal entities will vary from 7.5 thousand to 12.5 thousand lei. It will also regulate the procedure of payment of insurance premiums to conclude an insurance contract through public procurement procedures. Another novelty of the draft law is that the amount of insurance indemnity will be determined depending on the age of the vehicle's exploitation, which is calculated from the date of its first registration or from the year of the vehicle's production. The bill is to be considered by Parliament in the second reading. // 22.03.2024 - InfoMarket.
