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Insurances FAQ

FAQ about insurances

The insurance broker is a Romanian or foreign legal person or a mutual company authorized under the law, which, for its clients, negotiates or concludes insurance contracts and provides other services in connection the protection against risks or with damage settlement.

The insurance mainly expresses financial protection for the losses suffered by people or companies due to various risks.

The agreement will be the first basic principle that allows the conclusion of a contract between the insured and the insurer, through which the insured benefits from protection for the risks the insurer has assumed.

The insurer, under an insurance contract, is bound to pay the value of the damages in the event of one of the assumed risks.

The insurance agent is a natural or legal person empowered, based on an insurer's authorization, to negotiate and conclude in the name and on behalf of the insurer’s insurance contracts with third parties, under the conditions stipulated in the signed mandate contract, without having the quality of insurer or of insurance broker.

Individuals, self employed people and legal people.

The insurance consultants represent a distribution manner of the insurance companies and of the insurance brokers to attract new clients. The insurance consultants perform a financial analysis of each potential client according to his needs.

They can mediate an insurer's insurance policies or in some situations they can sell policies of multiple insurers but only for one type of insurance from each insurer.

By the Law 32/2000 it was provided the establishment, duties, the Management Board and the regulation of the Insurance Monitoring Commission.

The insurance companies turn to the reinsurance in order to protect its policyholders when the taken risks are too high.

Through reinsurance an insurance company has a far greater financial stability and in addition it increases its capacity to assume new risks. Thus, the reinsurance occurs if the insured sum for a risk or a group of risks exceeds the limit an insurance company can withstand without affecting the protection of the other insured.

One of the functions of the reinsurance is imposed by the monitoring and control institutions of the insurance market in each country by the term called solvency degree. It is calculated by each insurance company and is the ratio between the company's capital and the premium rates collections.

It is a trust fund for the protection of policyholders.

The insurance contract is concluded in writing and shall include:

- name or title, address or registered office of the contracting parties;
- the object of the insurance: assets, people and civil liability;
- ensured risks;
- the start and end date of the insurer’s liability;
- insurance premium rates;
- the insured sums;
- other elements determining the rights and obligations of the parties.

The insurance contract cannot be proved by witnesses, even if there is a beginning of written proof.

This insurance covers the risks that may cause damage to electronic equipment such as: material damage and depending on the option of the insured, in addition, the insurance of data loss and data carriers and of additional operating expenses.

It represents the opportunity for individuals and legal people, owning vehicles registered in Romania, as in exchange for the insurance premiums to benefit of compensation for damages due to the occurrence of some insured risks.

By this, the Insurer covers the medical expenses (emergency medical treatment), and even the expenses for the return in the country, required to be made by the Insured as a result of an accident or sudden illness occurring during a journey abroad. The covering by insurance cover is valid for the countries mentioned in the policy and in the amounts established by it.

The insurance of assets owned by legal people represents the coverage by insurance of the following goods:

- buildings and other constructions (including fixed installations related to heating, electrical one, plumbing, elevators etc.);
- machines, tools, installations, equipment, engines, tools, household inventory, other fixed assets and inventory assets;
- mobile assets (commodities, raw materials and auxiliary materials, semi-finished and finished products and other material circulating means).

It represents the securing of buildings and other constructions owned by the Insured individual, as owner, tenant, administrator, custodian or other legal quality as well as the expenses for a part or all of the provided risks depending on the option of the Insured.

It represents the compulsory insurance for the civil liability cases against third persons injured in vehicle crashes produced outside Romanian territory. It is mandatory for all vehicle owners, individuals or legal entities leaving the Romanian area. Under the insurance policy, the Insurer undertakes, when one of the provided risks produces, to indemnify the third parties injured in car accidents.

By this insurance, in exchange of the insurance premium rates, the insurer covers the damages caused by the insured and foe which is responsible under the law, towards damaged third parties:

- body injuries suffered by a third person and who, due to temporary disability, complete disability or death, suffered money loss, including by resulting from the partial or total loss of an income, whether these damages are the direct consequence of the occurrence of the body injury;
- material damage consisting in the deterioration or the destruction of property or injury caused to an animal.

..other questions?