Compulsory Households Insurance Law, enacted by the President
 The Law regarding compulsory households insurance (AOL) has been promulgated today, November 4, 2008, by the President of Romania, Traian BASESCU, according to a Presidency's press release.
AOL Law will be effective 120 days after it will be published in the Official Gazette.
Also, the methodological applying directions of the law will be approved by the Government at the Insurance Supervisory Commission's proposal within 90 days from the normative act publication in the Official Gazette.
Discussion about introducing a compulsory households' insurance system have started more than ten years ago. The law was adopted by the Government in August 2007 and it was passed on to the Parliament for debate in an emergency procedure. After the vote by the Senate in November 2007, the draft of the Law was adopted on the 8th of October 2008 by the Chamber of Deputies.
According to the law, the ones who will not insure their households won't benefit from any compensation from the state or local budget in case of a natural disaster. Also, the insurance will cover three basic risks: earthquake, floods and landslides and the insurance premium will be 10 EUR or 20 EUR, depending on the type of the structure.
At the same time, the Law is stipulating the establishment of an insurance against natural disasters pool, as an insurance-reinsurance company, that will manage the risks fund which will pay the claims will in case one of the three compulsory insured risks produces.
Author: Andreea IONETE
on 04.11.2008
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