Announcement on licence withdrawal
We inform you that on 17.09.2021, the Board of the Financial Supervisory Authority decided to withdraw the business license of SAR CITY INSURANCE SA and to file the motion for starting bankruptcy procedure, on the ground of art. 249 of Act no. 85/2014 on the procedures for preventing insolvency and insolvency procedures, as subsequently amended and supplemented.
Useful information for those who have policies with CITY INSURANCE SA or for those who have suffered damages caused by a person insured by the company:
Option for insurance contract termination
According to the FSA Decision no. 1148/17.09.2021, we inform you that you have the possibility to terminate the insurance contracts concluded with the insurer CITY INSURANCE SA, as well as the right to retrieve the insurance premiums, paid within contracts performance, pro rata with the period between the time of termination and the expiry date of contracts validity period.
The insurance contracts concluded with CITY INSURANCE S.A. remain valid up to the date when one of the following cases occur:
- - The date of insurance contract termination;
- - No later than 90 days from the date of delivery of the ruling for starting the bankruptcy procedure according to the legal provisions (art. 262 para. 3^2 of Act 85/2014 on the procedures for preventing insolvency and on insolvency: “(3^2) Within 90 days from the date of delivery of the ruling for starting the bankruptcy procedure, the insurance policies concluded by the insurance/reinsurance company shall terminate by mere operation of law; the reinsurance contracts shall be terminated under the same conditions.
*In accordance with art. 2209 of the Civil Code, unilateral termination of the insurance contract by one of the parties may be done only in compliance with a notice of at least 20 days calculated from the date when the notification is received by the other party.
To unilaterally terminate the policies, please fill in the application form.
ADOBE PDF READER is required to view the waiver request. You can download this program for free here: https://get.adobe.com/ro/reader/
Termination requests shall be sent to the email address denuntare@cityinsurance.ro
* To unilaterally terminate the bond insurance policies, a letter from the Beneficiary is required, mentioning the following: “Considering the decision to withdraw the operating permit no. 1148/2021, …………. (Beneficiary’s name) agrees to release Societatea de Asigurare - Reasigurare City Insurance S.A. from risk and to unilaterally terminate the insurance policy series M no. xxxx”.
The PAD insurance policies, for which PAID company is the insurer, cannot be terminated and remain in force until their validity expires.
Any person invoking a right of claim against CITY INSURANCE S.A., consequently to the occurrence of risks covered by a valid insurance policy, between the date of business licence withdrawal and that when the insurance contracts are terminated or the expiry date of the validity period, may apply for opening the claim file by an application addressed to the Policyholders Guarantee Fund.
The required documents may be seen on the site https://www.fgaromania.ro.
Claim settlement
Given the decision of FSA no.1148 /17.09.2021, on the withdrawal of the business licence of City Insurance S.A. Insurance-Reinsurance Company, on finding the state of insolvency and filing the motion regarding starting the bankruptcy procedure against it, for opening claim files, for loss ascertaining and re-ascertaining, we recommend that you contact the Policyholders Guarantee Fund-PGF (guidance on the site: https://www.fgaromania.ro/en).
Any person invoking a right of claim against City Insurance S.A. Insurance-Reinsurance Company, consequently to the occurrence of risks covered by a valid insurance policy, between the date of business licence withdrawal and the date of insurance contracts termination, will have the possibility to request claim file opening to the Policyholders Guarantee Fund, according to the provisions of art. 12 of Act no.2I3/20I5 on the Policyholders Guarantee Fund.
According to the law, only as of the date of publishing the FSA decision in the Official Gazette of Romania the insurance creditors of City Insurance S.A. Insurance-Reinsurance Company may submit payment applications to PGF or applications for premium reimbursement. Payment applications may be submitted as of the date of publishing the FSA decision on the withdrawal of the insurer’s licence and up to maximum 90 days from the date when the ruling for starting the bankruptcy procedure remains final. For the insurance claims arising after the court ruling for bankruptcy procedure remains final, payment applications may be submitted within maximum 90 days from the date when the insurance creditor’s right of claim has arisen.
required documents may be seen on the site https://www.fgaromania.ro/en.
The PAD insurance policies, for which PAID company is the insurer, cannot be terminated and remain in force until their validity expires.
Any person invoking a right of claim against CITY INSURANCE S.A., consequently to the occurrence of risks covered by a valid insurance policy, between the date of business licence withdrawal and that when the insurance contracts are terminated or the expiry date of the validity period, may apply for opening the claim file by an application addressed to the Policyholders Guarantee Fund.
The required documents may be seen on the site https://www.fgaromania.ro/ en.