The insurance market in the Republic of Moldova
Insurance is a good way to protect yourself financially against risks that may arise in the future.
- The insurance market is where insurance demand, coming from individuals and legal entities wishing to take out various types of insurance, meets insurance supply, coming from companies licensed by the CNPF to operate in the insurance field.
- Insurance is a protection tool through which an individual or legal entity – called the insured – transfers certain risks to a licensed company – called the insurer – by paying a sum of money called the insurance premium, which obliges the insurer to pay a sum of money if the risks covered by the insurance occur.
- Insurance can be classified according to the risks it covers:
- Life insurance, which can protect you against the risk of accidents, bodily injury, temporary/permanent incapacity for work due to illness/accident, critical illness, unemployment, death, etc.
- Property insurance, which protects you against the risk of damage, theft, fire and natural disasters, etc.
- Civil liability insurance, which covers your liability towards individuals or legal entities for damage caused to them, the most common being taken out against the risk of car accidents.
- Credit, guarantee and financial loss insurance, which protects you in case of insolvency, inability to repay loans taken out, loss of income, unforeseen expenses, and other financial losses.
- According to the way they are carried out, there are two types of insurance:
- Compulsory insurance, which is taken out in accordance with the conditions provided by law (e.g. MTPL insurance, Carte Verde).
- Voluntary (optional) insurance, which is taken out based on the conditions established in an insurance contract.
- To obtain an insurance policy, you have the option of entering into an insurance contract directly with an authorized insurer or through an authorized insurance intermediary.
- Under the contract, you will pay an insurance premium to the insurer, and if the event for which the insurance contract was concluded occurs, the insurer will pay you the amount calculated according to the insurance contract, called insurance compensation in the case of property and civil liability insurance, or insurance benefit in the case of life insurance.
To make an informed decision, it is important to know how the insurance market in the Republic of Moldova works and who its participants are.
Structure of the insurance market in the Republic of Moldova:
- The insured is the person who has entered into, or on whose behalf an insurance contract has been entered into (the beneficiary), with the insurer. The insured and the beneficiary may be the same person.
- The insured has the option of entering into the insurance contract directly with the insurer or through an insurance intermediary.
- Insurance intermediaries mediate the conclusion of the insurance contract between the insured and the insurer.
- Knowing the specifics of the market very well, the intermediary can advise you and recommend the best solution among a wide range of options.
- The National Financial Market Commission (CNPF) regulates and licenses the activity of insurers/reinsurers/intermediaries and supervises their compliance with the law.
- If your contractual rights are breached by the insurer/intermediary, you can contact the CNPF to resolve the dispute.
- The insurer is a legal entity registered in the Republic of Moldova that holds a licence to carry out insurance activity.
- Based on the insurance contract concluded, the insurer is to pay the insured the amounts due as a result of the occurrence of the insured risk.
- An insurer has the option of entering into a contract with a reinsurer in order to reduce the risk of insolvency or inability to pay the insured the compensation specified in the contract, should the risks covered by the insurance materialize.
- Based on a premium received from the insurer, the reinsurer will cover part of the benefits/compensation to be paid by the insurer to the insured, should the risks specified in the contract concluded between the two materialize.
- The transfer of risk to reinsurance by an insurer does not affect the contractual relationship between the insured and the insurer; the contractual rights and obligations remain with the insurer.
Information needed when choosing an insurance policy
Before entering into an insurance contract, find out about insurers and the products they offer, so that you make the right decision.
Check the insurer's licence
- To benefit from the full protection of the law in this field, before choosing an insurer or an insurance intermediary, check whether it is licensed and supervised by the CNPF. The list of licensed insurance companies and brokers is available on the CNPF website (www.cnpf.md), under the "Supervised Entities" section.
- Check the type of licence granted to the insurer, as insurers may only operate within the limits of the insurance classes for which they are licensed.
Find out about the insurer's financial situation
- ATTENTION! From the moment the insurer's insolvency is declared, you have the right to terminate the contract and request a refund of the premiums for the unexpired period, but the process can take a long time. To prevent this risk, before choosing an insurer it is important to find out about its financial situation by accessing the information it makes public (balance sheet, financial results report, auditor's report).
- You can also access information on the insurers' key indicators and the number of complaints registered against each insurer on the Commission's website (www.cnpf.md), under the "Statistical and Analytical Information" section, as well as on the insurer's own website, where you can find relevant public information.
Ask for information about the products you are about to purchase
- In order to make an informed decision about entering into an insurance contract, ask the insurer/insurance intermediary for information on the terms, deadlines, limits or exceptions of the contract and the insurance premium.
- Carefully read all the information received about the features of the proposed products and their costs, compare several offers and decide which product suits you best.
- In the decision-making process, you can request information from an insurance intermediary, who can advise you and recommend the best solution among a wide range of options.
There are several sources of information you can consult.
- The CNPF is the authority responsible for regulating, licensing and supervising insurers/intermediaries/reinsurers. On its website (www.cnpf.md) you can find useful information about:
- The list of licensed insurers and insurance intermediaries, under the "Supervised Entities" section.
- Information on insurers' key indicators and the number of complaints registered against each insurer, under the "Statistical and Analytical Information" section.
- How to take out an insurance policy, under the "Useful Information" section, where you can find the "Insured's Guide".
- Legislative and regulatory acts in the field of insurance, under the "Regulatory Framework" section.
- The RCA Data information system, as well as frequently asked questions, video guides and the legislation in force, under the "RCA Data Information System" section. In this same section, by accessing the link https://rca.cnpf.md/, you can check online the validity of your MTPL insurance policy / Carte Verde insurance certificate.
- You can also request any information related to the insurance market from the CNPF, either by scheduling a hearing, in writing, or by phone, from the General Insurance Supervision Directorate. The CNPF's contact details can be accessed at http://cnpf.md/md/contact/.
- On the website of the National Bureau of Motor Vehicle Insurers of Moldova (www.bnaa.md) you can find information about the international civil liability insurance policy "Carte Verde" (Green Card), namely where you can purchase the insurance, what to do in case of an accident, which insurance companies are authorized to issue the "Carte Verde" policy, information about the Road Victims Protection Fund and the Compensation Fund, etc.
- On the Capital Market website (www.capital.market.md), under the "Insurance Market" section, you can find up-to-date information about the insurance market and its participants, as well as legislative changes in the field, market conditions, advice for the insured, etc.
Other sources of information
- The websites of insurers/insurance intermediaries, as well as the information boards displayed at their offices.
- The website of the Insurers' Union of Moldova (www.uam.md) regularly publishes information about events, articles that have appeared in the media, and statistical and analytical information about the insurance market in Moldova. The national legislation regulating the insurance field can also be found on the website.
- On the portal http://asigurare.md/ you can find an analysis of the issues and processes influencing the development of the insurance market in Moldova, company indicators, as well as useful information for the insured.
The rights and obligations of the insured
After you have entered into an insurance contract, it is important to know your contractual rights as the insured …
Rights regarding documentation
- To receive a copy of the insurance contract. Always check that the contract is signed by an authorized representative of the Insurance Company in accordance with its Articles of Association, otherwise the contract could be considered void!
- To receive a cash receipt for any payment made under the contract. ATTENTION! Never make a payment without receiving a fiscal document from the insurer/intermediary!
Rights regarding compensation/benefits
- To choose the method of payment of the compensation, which may be: in cash, by transfer to the bank account specified by you, by restoring or repairing the property, or by the provision of services.
- If the process of establishing the insured event takes longer than one month, you have the right to request in writing from the insurer an advance on the insurance benefit/compensation proportional to the payment obligation, provided that this obligation and its amount are not in doubt.
- If the deadline for payment of the insurance benefit/compensation is breached through the fault of the insurer, you have the right to collect from it a penalty of 0.1% of the benefit/compensation amount for each day of delay.
- If the insurer refuses to pay the insurance benefit/compensation in full or in part, you have the right to receive a reasoned decision from it in writing, within the terms specified by law or in the insurance contract.
- To challenge in court the insurer's refusal to pay the insurance benefit/compensation.
Other rights
- To modify the risks for which you are insured, in which case the insurance premium will be recalculated based on an addendum.
- In the event of termination or nullity of the contract, you have the right to be refunded the insurance premiums paid in the case of property, personal or civil liability insurance, or the accumulated reserve in the case of life insurance, in accordance with the contract.
- If the insurer wishes to transfer its insurance portfolio to another insurer, you have the right to be informed of this decision through a notice in the Official Gazette, and you have a prior one-month period available to submit any claims.
- You must also be informed about the insurer that accepted the transfer, within 15 days from the date the decision approving the transfer takes effect, through a notice in the Official Gazette.
…but also your obligations, in order to avoid the risk of breaching the contractual terms, which could lead to the cancellation of the insurance policy.
- It is important to carefully read any document before signing it and to make sure that the terms offered are correct and suit you.
- Always provide complete and accurate information; otherwise, if the insured event occurs, you risk having your compensation/benefit payment refused if the insurer concludes that you did not provide the correct information.
- You are obliged to pay the insurance premiums by the due date, in accordance with the contract. ATTENTION! If you fail to pay the premiums or pay them late, you risk termination of the contract, in which case the insurer is released from the obligation to pay the insurance compensation/benefit, as well as
- To keep proof of payment of the insurance premiums. Always request a cash receipt for any payment made under the contract!
- You are obliged to submit a compensation/benefit claim within the deadline specified in the contract.
- You are obliged to provide the insurer with the requested documents within the deadlines set out in the contract, in order to establish the compensation/benefit to be paid. ATTENTION! Always request from the insurer, in writing, the complete list of documents required, so as not to delay the settlement of your case!
- In the case of property and civil liability insurance, you are obliged to make the damaged property available to the insurer for examination within the deadline set out in the contract; otherwise, you may lose your right to receive compensation.
ATTENTION! Carefully read the final contractual clauses as well as the insurance conditions regarding the insured risks, the deductible where applicable (the part of the damage borne by the insured), the method of calculating the compensation/benefit, the payment deadlines, the insured sum, and the limits or exceptions of the contract, and determine whether the contractual terms are correct and suit you. Do not hesitate to ask questions and request details about anything that is not clear to you or that you are not sure about. You should never purchase a product/service that you do not fully understand.
In addition to the rights and obligations that must be observed for all types of insurance, you must also know the specific terms of each type of insurance.
Property insurance
- When the contract is concluded, the insurer has the right to examine the property in order to confirm its existence and actual condition, and after the contract is concluded, it has the right to check how the insured property is maintained.
- You are obliged to maintain the insured property in accordance with the terms set out in the contract in order to prevent the insured risk from occurring, and when the risk occurs, you are obliged to take measures to limit the damage.
- You are obliged to declare the existence of other insurance policies for the same property with different insurers, both when the contract is concluded and afterwards.
- If, in the event of the transfer of the insured property, the new owner wishes the insurance contract to remain valid, the seller is obliged to notify the insurer of the transfer of the insured property within 10 days of the date of transfer.
- The insurance contract may provide for the application of a deductible (the part of the damage borne by the insured).
- The compensation cannot exceed the value of the property at the date the insured event occurred, nor the actual amount of damage suffered.
Civil liability insurance
- The insurer may be sued by the injured parties, within the limits of the obligations it has under the insurance contract.
- The compensation is established by agreement between the injured party and the insurer, in accordance with the contract or a court decision.
- The insurer has the right to:
- participate, in the absence of the insured and independently of their will, in the examination of the circumstances of the occurrence of the insured event;
- submit inquiries, requests and petitions to the relevant institutions regarding the circumstances of the alleged insured event;
- challenge in court, where applicable, the acts issued by the bodies establishing the circumstances of the insured event, as well as the decisions adopted regarding the determination of the insured's fault in the occurrence of the insured event.
Life insurance
- You have the right to designate a beneficiary either when the contract is concluded or during its performance, through a written declaration communicated to the insurer or through a will. Replacing or revoking the beneficiary is allowed at any time during the performance of the contract.
- The insurance benefit is paid to the insured or, in the event of their death, to the beneficiary designated by them, or, in the absence thereof, to their heirs.
- You have the right to terminate the insurance contract, free of charge, within 20 days from the date the contract is signed by the insurer.
- With the insurer's consent, you have the right to benefit from an interest-bearing loan within the limits of the accumulated reserve.
If the event you were insured against occurs, you must follow certain steps to obtain the compensation you are entitled to.
1
If the event you were insured against occurs, you must submit a compensation claim to the insurer/intermediary, in accordance with the contract. Ask them for the complete list of documents you need to submit, to avoid delaying the compensation payment deadline!
2
After being notified of the damage, the insurer is obliged to open a claims file and request information about the accident and its consequences from the competent bodies and institutions, if the insured does not provide it.
3
You will need to make the damaged property available to the insurer for examination. The insurer will examine the damaged property and, within the deadline specified in the contract, draw up a damage assessment report.
4
The insurer will close the claims file within the deadline specified in the insurance contract. It will inform you in writing of the status of the file review, as well as of its conclusion and the calculated compensation amount. You also have the right to request a copy of the claims file.
5
If the insurer refuses to pay the compensation or you do not agree with the compensation amount it has established, you have the right to challenge the insurer's decision in court.
6
The insurer will pay the insurance compensation in accordance with the terms provided in the contract.
The insurer is legally obliged to settle the case in compliance with the contractual terms. To ensure your case is resolved quickly and lawfully, you must notify the insurer immediately when the event occurs, provide it with all the requested documents, and facilitate the examination of the property as quickly as possible.
Measures available in case of a dispute
In case of a dispute, you have several ways available to resolve it.
- In case of a dispute or dissatisfaction, it is recommended that you contact the insurer/intermediary directly to try to resolve the issue amicably before turning to regulatory authorities or legal action.
- Make sure it is not simply a misunderstanding by requesting additional documents/information from the insurer/intermediary concerned, which will help you fully understand the situation and determine whether a breach of the contractual terms or the applicable legislation has indeed occurred.
- You can also contact the CNPF to request any information related to the insurance market, either by scheduling a hearing, in writing, or by phone, from the General Insurance Supervision Directorate. The Commission's contact details can be accessed at http://cnpf.md/md/contact/.
- Step 1: If the issue is not resolved amicably, you can notify the insurer/intermediary concerned by filing a complaint.
- Step 2: If you are not satisfied with how the complaint was resolved, you have the right to submit the complaint to the CNPF or you can take direct action in court.
- The complaint can be filed with the CNPF as follows:
- By postal mail or in person at the office (through the registry) at the following address: mun. Chişinău, bd. Ştefan cel Mare și Sfînt, 77.
- By email at [email protected]
- By calling the helpline (+373 22) 859-405
- See details on how to complete, submit and resolve a complaint in the guide's appendices.
- If the insurer/intermediary has not fulfilled its contractual obligations towards you and the issue cannot be resolved amicably or through a complaint, you can take legal action in court.
- However, before resorting to this method, you should bear in mind that court proceedings are a complicated procedure that requires time and expense.
- If the court rules in your favor, the court costs could be borne by the insurer/intermediary.