World Bank supports amending the household insurance law
Amending the law on mandatoryhousehold insurance (AOL) is an important step in creating its functionality, but the process is not yet completed.
In this regard, Eugene GURENKO, Lead Insurance Specialist, World Bank, draws attention to several proposals to amend the Normative act, that have not been incorporated into Law No. 260/2008, but there are particularly important for an effective implementation of AOL since January 1, 2010.
"There must be removed all references to introducing rate payment of insurance premiums and it must be established the commission collected by the agents of insurance companies. Also, this requires a regulation of the solvability of the Insurance Pool, as well as the clear definition of its attributions regarding claims management", stated Eugene GURENKO, at ICAR - The International CAtastrophic Risks Forum, held Monday, October 12, this year, at the Palace of Parliament, in partnership by Media XPRIMM and the Ministry of Administration and Interior.
GURENKO also enumerated the steps that must be followed after the establishing of PAID, regarding the developing of a business plan, recruiting the management team and ensuring effective IT systems. These measures should be subsequently completed with obtaining the insurance license, reinsurance placement of risk and launching public information campaigns.
"Last but not least, there must be obtained certain cooperation agreements between insurers regarding product distribution, as well as sales agents' and claims inspectors' training", GURENKO completed.
The World Bank official underlined once again the support that the institution he represents is ready to provide to the Government and to the local insurance market, regarding its implementation, as well as to ensure the start of PAID's activity.
Author: Oleg DORONCEANU
on 13.10.2009
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