The Romanian Financial Supervisory Authority (the “Authority”) has recently enacted Rule No. 35/2016 amending the existing rules regulating the standard form and clauses included in compulsory home insurance agreements covering earthquake, landslides and floods (the “Rules”). The main purpose of the new set of rules is simplifying the issuance and maintenance of the insurance policies.
The two main amendments refer to the possibility of issuing the insurance policies in an electronic format and the fact that the signature of the contractor is no longer required on the first page of the policy for its validity. These measures aim to speed up the process of concluding and issuing agreements for home insurance, mandatory under the applicable law. A new standard format of the insurance policy was also approved and will be applicable when the rules come into force.
The transfer of the ownership right over the insured immovable property is also simplified. Currently, it is only required that the insurance company issues an additional act to the insurance policy mentioning the name of the new owner. The formality of mentioning the existing policy with the existence of the addendum has been eliminated.
The Rules also set forth new measures in case of a partial enforcement of the insurance. Previously, the beneficiary had the option to either reintegrate the insured amount or to have this amount diminished following an insurance payment. However, the insured amount will now be reinstated automatically and a supplementary premium will be withheld from the payment for the damages suffered.
The Rules will enter into force on 24 October 2016.