President Traian Băsescu yesterday promulgated the law that nolonger requires those owners who already have an optional policycovering damages caused by floods, earthquakes and landslides tobuy a mandatory home insurance policy. Insurance companies part ofthe mandatory insurance system might therefore lose more than 30million euros in premiums, which jeopardises the operation of thesystem or may lead to tariff hikes.
The Chamber of Deputies, the decision-maker in this case, hadenacted an amendment last month whereby individually insured homeswere no longer subject to this law. The vote of deputies came afterthe previously approved regulations by the Insurance SupervisionCommission (CSA) required owners that already had optionalinsurance to buy a mandatory policy, as well, which was notregarded as overinsurance. Therefore the mandatory policy shouldhave covered the damage caused by natural disasters up to 20,000euros with the rest of the amount up to the actual price of thehome to be covered by the optional insurance.
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