From mass-media: COTAR about the City Insurance case: Campaign with ‘fake news’ to bring chaos back on the MTPL market

Hereunder we render the entire text of the COTAR press release and the position adopted as to the articles recently published in the press about Societatea de Asigurare-Reasigurare City Insurance

 

The Confederation of Licensed Operators and Transporters of Romania (COTAR) expresses concern as to the information launched by the Association of the Independent Car shops (ASSAI) regarding City Insurance and asserts that it is a ‘fake news’ campaign.

„The Confederation of Licensed Operators and Transporters of Romania (COTAR) expresses its concern regarding a disinformation campaign launched by an association which attacks the insurance market, sending to the mass-media a press release containing unreal figures and data. We have requested clarifications from those entitled to have such data, who specify that they do not have the data thrown on the market by the ASSAI communicators”, says the representatives of the confederation.

According to COTAR, if the stake was to make an exercise of image, and the campaign remains only at the level of a PR game, then they have reached their goal and became notorious.

„But if this campaign continues, we request them not to launch any other attacks based on ‘fake news’, to bring chaos back on the insurance market short time after a balance wished by everybody has been obtained. If the interest is to replace a great insurer with another, who wants to enter the Romanian market through pressure, we warn them that by such a campaign they will manage only  to throw the entire market in chaos – circumstance which is not desirable for any company, not even if it would like to become a market leader here”, mentions COTAR.

COTAR specifies that it wishes that the balance that existed in the last two years on the insurance market to be maintained and things evolve according to the same trend in the next period. Moreover, COTAR expresses its concern and does not support the one-off actions of some representatives with hidden interests, which may impair the balance of the insurance market, whether we speak about insurers, transporters, car shops or brokers.

‘We draw the attention with regards to practices used by those who intend to unbalance the insurance market, by presenting incorrect information, i.e. fake news. All these slippages, if taken seriously by the beneficiaries, may impair the balance that exists on the insurance market, a balance reached with great efforts made by us, by the transporters, but also by the supervisor of this market. The unjustified pressure exerted by the so-called representatives of a few repair shops members of ASSAI may lead to an unbalance on the insurance market. If they alluded certain disclosures, why don’t they do them? We know this practice. We would like them to explain to all of us since when they are interested in our MTPL policies, when without the amendments to the MTPL law, made upon the initiative of the transporters, they would be still waiting at the FSA doors for Mişu Negriţoiu to receive them. ASSAI had better declare how many members still has in its association’, stated Vasile Ştefănescu, president of COTAR.

Moreover, COTAR greets the efforts of those that contribute to the smooth running of the business on this market and draws the attention on the fact there is a risk that the insurance market return to chaos because of these PR campaigns based on ‘fake news’, campaign behind which we can see true professionals in handling non-real information.

According to the organization, the insurance market may be thrown into chaos by such PR campaigns, as it may be destroyed also by some insurance companies that do not honor their MTPL contracts, according to the law in force, do nu make their payment in due time to the prejudiced persons, following repair estimates – both in self management, as well as by car shops. Millions of consumers of the mandatory insurance market may be affected by a possible increase of rates more than it would be justified by a market with correct practices.

„Further to the discussions we had with the management of FSA, by the 15th of September 2019 we shall be invited – the representatives  of the transporters, insurers, civil society, etc. -, to make amendments to the FSA rule 20/2017, so that the prejudiced persons benefit from all the rights granted by Act 132/2017, and as long as all the car owners pay this MTPL duty which is mandatory by law, the insurers should be  punished according to the MTPL law as well, if they do not comply with the MTPL contract and do not make their payments in due time, procrastinating and putting the prejudiced persons in humiliating situations. We hope that the amendments to this rule 20/2017 to materialize by the 15th of October 2019”, the press release also says.