Steps to be taken in order for the claimants to obtain compensation/indemnity due from the Policyholder Guarantee Fund

1. When can the Fund make payments to insurance creditors?

 The Fund is entitled to make payments from its available assets, for amounts due to insurance creditors, after the Court decision to commence the bankruptcy proceedings becomes final and binding. (art. 266 of Law no. 85/2014, art. 13 para. (1) of Law no. 213/2015, corroborated with art. 18 para. (1) of Norm no. 24/2019)

Following the reception by the Fund, within 30 days from the publishing date of the decision to close the financial recovery proceedings, of records relating to insurance contracts in force at the date of closing the financial recovery proceedings, the complete records of claim files, as well as technical and operational records relating to these contracts and files, the Fund shall verify the data comprised by the records taken over, including the correlations between such data, the claim files and the insurance contracts in force.

After the specialized directorates of the Fund analyze the records taken over, the list of potential insurance creditors who may benefit from compensation/indemnities from the available resources of the Fund shall be published on the website of the Fund, after approval of the special commission assembled according to Law no. 503/2004 on financial recovery, bankruptcy, dissolution and voluntary liquidation in insurance activity, republished, subsequently amended.

2. Who are insurance creditors? (art. 4 para. (1) of Law no. 213/2015)

 Insurance creditors are, as appropriate:

a). the insured person (the policyholder) — the natural or legal person having legal relationships with the debtor insurer by the conclusion of the insurance contract, who may also have the capacity as contracting party;

b) the insurance beneficiary — the third party to whom, in accordance with law or with the insurance contract, the debtor insurance undertaking is to pay the amounts owed as a result of the insured risk;

c) the aggrieved person (in case of third party liability insurance) — the person entitled to receive compensation for the prejudice incurred further to the occurrence of a risk covered by a third party liability insurance contract.

4. Who can request indemnities/compensation from the Fund?

In order to collect indemnities/compensation from the Fund, any person who invokes an insurance claim right against the insurer must fill in a documented payment request, in compliance with the standardized form provided by Norm no. 24/2019 in annex no. 9 for premium returns, respectively annex no. 10 for compensation requests (art. 14 para. (1) of Law no. 213/2015, corroborated with art. 20 para (1) of Norm no. 24/2019)

5. How can the payment request be sent to the Fund?

The payment request shall be addressed to the Fund and may be submitted directly at the headquarter of the Fund, or sent through postal services, with confirmation receipt, through electronic mail or through other communication means that ensure the transmission of the text and the confirmation of receipt. The request for payment may also be submitted at the representatives of the Fund designated by the Fund for this purpose.

The payment request, as well as supporting documents, shall be submitted in Romanian language. If they are drafted in a foreign language of international circulation, the payment request and the documents shall be submitted together with their authorized translations according to the law. (art. 14 para. (2) and para. (5) of Law no. 213/2015, corroborated with art. 20 para. (1)-(5) of Norm no. 24/2019).

6. What documents must be attached to the payment request?

Together with the standard payment request, the claimant shall also attach the supporting documents, as certified copy, attesting clearly to the amounts claimed as insurance claims. Where submission of the supporting documents as certified copies is impossible, the claimant may submit either copies thereof, or an affidavit attesting to those supporting documents. The reasons for the impossibility to submit the supporting documents as certified copies shall be indicated in the payment request. (art. 14 para. (3) of Law no. 213/2015, corroborated with art. 20 para. (4) of Norm no. 24/2019).

In the payment request, the petitioner shall declare under his own responsibility, on penalties provided by the Criminal Code, whether the amount claimed from the Fund was collected during the bankruptcy proceedings and/or by exercising other recovery actions for the amounts to which he is entitled, taken against the debtor insurer that was declared insolvent. (art. 20 para. (5) of Norm no. 24/2019).

The payment request shall be accompanied by identification documents for the claimant/claimants/insurance creditors (art. 20 para. (4) of Norm no. 24/2019)/

According to art. 22 of Norm no. 24/2019, payments to parties other than the insurance creditor may be effected on request of the insurance creditor, pursuant of the applicable legal provisions.

7. Which is the procedure for analyzing payment request and supporting documents attached to payment requests? (art. 20 para. (7) and (8) of Norm no. 24/2019)

The lists of insurance creditors whose certain, fixed and due claims are to be paid from the available sources of the Fund are drafted as payments requests are registered and analyzed, following the analysis and endorsement of claim files by all specialized directorates of the Fund, as well as after the verification and analysis of information and documents provided by art. 19, received from the insurer, as well as of those provided by art. 6 and art. 25, if they were received from the judicial liquidator.

For the purpose of approving the lists, the special commission may randomly verify claim files and insurance claims and for all cases where it deems it necessary, it may order the re-verification of said files and insurance claims.

After such lists are approved by the special commission, the payment of the indemnities/compensation is made to the insurance creditors, in compliance with the legal provisions.

8. What is the payment procedure for compensation/indemnities approved for payment from the Fund?

The Fund shall ensure the payment of the compensations/indemnities to the insurance creditors of the bankrupt insurers, within the limit of the coverage level and under the conditions provided by Law No. 213/2015 and by Norm no. 24/2019. (art. 15 para. (2) of Law no. 213/2015 corroborated with art. 21 para. (1) of Norm no. 24/2019)

The payment shall be made in the national currency — leu (RON), and in the case of claims in foreign currencies, the payment shall be made at the exchange rate communicated by the National Bank of Romania on the payment date. (art. 15 para. (3) of Law no. 213/2015 corroborated with art. 23 para. (1) of Norm 24/2019)

The indemnities/compensation due to  insurance creditors may be paid by the Fund by post services for amounts up until 5.000 RON and/or by other credit institutions authorised by the National Bank of Romania, including online (art. 15 para. (4) of Law no. 213/2015 corroborated with art. 23 para. (2) of Norm no. 24/2019)

9. Can payment of indemnities/compensation be made to a person other than the insurance creditor?

According to art. 22 of Norm no. 24/2019, payments to a party other than the insurance creditor can be effected on request of the insurance creditors, pursuant of the legal provisions applicable.

10. What can an insurance creditor whose claim exceeds the guarantee threshold provided by law do?

The insurance creditor may separately follow the bankruptcy proceedings of the insurer provided by Law No. 85/2014 to recover its claim from the bankrupt insurer’s assets, including the amount owed which exceeds the coverage level provided by law, through registering the claim in the statement of affairs of the bankrupt insurer. (art. 17 of Law no. 213/2015)

If the amount requested as compensation from the Fund was collected from the bankruptcy proceedings and/or following other recovery actions against the debtor insurer, the claimant shall make notice of the amount of compensation already collected, by filling in the payment request addressed to the Fund.  

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