FGA can receive payment requests from potential insurance creditors of Certasig

Bucharest – February 27 2020. Policyholders Guarantee Fund (FGA) took notice of the Decision of the Financial Supervisory Authority no. 209/20.02.2020, published in the Official Journal of Romania no. 156/26.02.2020, regarding the withdrawal of the functioning authorization of Certasig – Insurance Reinsurance S.A. and ascertainment of insolvency. The Financial Supervisory Authority will promote the request for commencing the winding up procedures against the insurer with the competent courts of law.

Considering the Decision of the Financial Supervisory Authority, any person having a right of claim against the insurer, following the occurrence of risks covered by a valid insurance policy which took place after the withdrawal of the functioning authorization but before the denouncement of the insurance contracts, may request the opening of the claim file with the insurer.

Any person having a right of claim against the insurer may file and submit with the Guarantee Fund a payment request for indemnity/compensation, or a payment request for return of premium, as appropriate. The payment request can be submitted/sent to the Fund starting on the date the Decision of the Financial Supervisory Authority was published in the Official Journal of Romania.

According to the Decision of the Financial Supervisory Authority no. 209/20.02.2020, published in the Official Journal of Romania no. 156/26.02.2020, the Guarantee Fund will take over the complete evidences of claim files, as well as technical and operational evidences relating to said claim files, within 30 days from the date the Court decision for commencing the winding up procedures against the insurer remains final and binding. Following the takeover, the Guarantee Fund will publish the list of potential creditors.

Handling of claim files by the Guarantee Fund shall be done only after the takeover of the complete evidences of claim files, as well as technical and operational evidences relating to said claim files, from the insurer. Following the takeover, the Guarantee Fund shall be able to start making payments relating to payment requests submitted, analyzed and approved for payment. According to the Law (art. 266 para. (2) of Law no 85/2014), the Guarantee Fund is entitled to make payments from its available assets to insurance creditors only after  the Court decision for commencing the winding up procedures against the insurer remains final and binding, and only to insurance creditors who submitted payment requests and have completed their files. Payment of compensation shall be done within the guarantee threshold provided by law, of 450.000 RON per insurance creditor.

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