Claims Allianz-Tiriac, leader of the insurance market, had for moral damages and bodily injuries caused by traffic accidents tripled in the first nine months of this year, coming to account for more than 11% in total claims on the segment of auto liability (RCA) insurance.
On the domestic market, this type of claim still stands at a low level compared with Western states, where victims of car accidents claim compensations of millions of euros for moral damages and bodily harm. Romanians usually ask for compensations only for car damages.
"The increase in claims for bodily injuries and moral damages is an absolutely normal trend, with the weight of these claims set to soar on short and medium term," stated Cristian Constantinescu, general manager of Allianz-Tiriac.
In 2008, these claims accounted for just 3.4% in overall sums paid for RCA insurance on the entire market, from 2.7% in 2007 and 1.4% in 2006. In the case of Allianz-Tiriac, the average compensation owed this year for moral damages and bodily injuries stood at 43,000 RON, from 26,000 RON last year. The number of cases climbed from 170 to 350 in 2009.
"These claims are settled in a period of 6-9 months or even in years, because it takes time until a court decision is obtained," states Aurel Badea, head of the general insurance unit of Allianz-Tiriac.
This year was the first one when Allianz-Tiriac posted an operating loss on the RCA insurance market, which halves the company's gross income from general insurance. Thus, the insurer ended the first nine months with profits worth 18m RON (4.3m euros) from general insurance, from 35m RON in the same period of 2008. On the segment of life insurance, gross income climbed by 25%, to 8m RON (1.9m euros).
"Starting next year, we'll raise tariffs with margins ranging between 20% and 100% in the case of some customer segments," explai
