As of July 1, the basic premium for internal compulsory motor third-party liability insurance will be equal to 704 lei, up 8%. The premium when signing the insurance contract will be set according to the category of the vehicle, driving experience and other factors, without the bonus-malus system that will be applied automatically depending on the damage history for each insured person apart, IPN reports.

According to the National Commission for Financial Markets, the new rules launch the process of transition to the liberalized regime of tariffs for compulsory motor third-party liability insurance, in accordance with the EU practices in the insurance sector.

The reference premium is calculated based on statistical data concerning the insurance market for the last five years (2013-2018) and is approved by the supervisory authority at least once a year. While the National Bureau of Motor Vehicle Insurers is being supervised by the Brussels Council of Bureaux, the insures are to apply the reference premium calculated by the supervisory authority for external motor third-party liability insurance.

The basic annual premium for external compulsory motor third-party insurance starting with July 1 is €30 for Zone 1 (down 9%), €231 for Zone 2 (up 3%) and €513 for Zone 3 (up 3%).