Damages caused by violent incidents in Bucharest, most probably not covered by insurance policies
 According to the first estimates, damages produced by the violent episodes of the Romanian street protest on Sunday (January 15) could amount EUR 300.000 - 450.000, taking into consideration both the value of the police equipments destroyed and the public and private properties affected. Unfortunately, most of the losses are not insured as damages produced by civil disorders are usually not covered by the voluntary insurance policies.
 | | Cristian BALANICA |
"As the ALL risks policies, which I would recommend to the corporate clients for such a situation, are quite expensive for the hard times we live in. Many companies have preferred a basic policy, with a reduced range of risk, and some even opted for self-insurance - which I do not recommend at all", says Cristian BALANICA, the head of PIRAEUS Insurance Broker. On the other hand, the standard motor hull policies don't cover the risk of vandalism, meaning that most likely the owners of the damaged cars will be not indemnified for their loss. "Only if the policy wording does not specifically mention vandalism or civil disorders as excluded risks, there is chance for the claimants to get some compensation", argues Viorel VASILE, Managing Partner, SAFETY Broker. Still, even so, interpretation of the "civil disorder" term remains up to the insurance company.
 | | Viorel VASILE |
The Bucharest protests on Sunday were the most violent seen since the start of the financial crisis. Up this moment Romania has largely avoided the kind of violent protests seen elsewhere in Europe, although its citizens faced some of the most drastic anti-austerity measures as cutting state jobs and wages, freezing pensions or the rise of value added tax in 2010. The protests began across the country on Thursday in support of a deputy health minister, who resigned after criticising a controversial draft healthcare reform bill that would have added private firms to the state health sector. The cabinet withdrew the bill on Friday, but that did little to calm the protesters, who returned day by day to the streets to express general discontent with the current situation.
On Sunday, violent groups burned cars and caused damages to kiosks, shops and bus shelters, which had been looted and destroyed. "It depends on the claims adjuster decision, whether they will be compensated or not. As the claims occurred following a spontaneous movement, not authorized by the Municipality or other legislative body, I assume that insurers will not cover the damages. Special clauses have been and will always be granted by the insurer in exchange for substantial bonuses (vandalism, terrorism), and not many companies have such provisions in their insurance contracts", concluded Cristian BALANICA.
Author: Daniela GHETU
on 18.01.2012
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