The Contractual Relationship between the Romanian Bureau and its Approved Correspondent

Transcription

1 The Contractual Relationship between the Romanian Bureau and its Approved Correspondent

2 - In order to receive the quality of correspondent (generic quality) on Romanian territory, the person needs to fulfill the criteria established by the General Assembly of the Romanian Bureau; - The first such criteria to the fulfilled were established and applied in 1999, updated in 2002; - Due to developments within the Green Card System, the Romanian legislation and practice, new criteria were established in , criteria which are still in force;

3 In order to obtain the quality of correspondent on Romanian territory and in order to maintain this quality, a person needs to cumulatively fulfill the following criteria: 1. According to its Constitution, to be able to undergo on Romanian territory the activity of assessing and evaluation claims due to traffic accidents and to pay compensations; 2. To have a minimum social capital of RON;

4 3. Its legal representative and/or the person leading the assessing-evaluation of claims department must have at least 2 years experience in this field of activity; 4. It can prove that it owns an informational system that allows an electronic communication as well as a clear evidence of the activity related to assessingevaluation the damages and paying the compensations;

5 5. It can prove that it is able, directly or through services contracts, to make assessments and evaluations of damages with qualified personnel, on the entire Romanian territory, within a short time from the date of the notification; 6. It can prove at any given moment its capacity to compensate the damaged parties within the conditions of the Romanian legislation, without requesting an advance from the insurer;

6 In respect to the criterion no. 6, its fulfillment can be proved if: a. At any given moment, the amount of at least 100, EUR cash appears in its bank accounts or b. At any given moment, it has a credit line with a balance of at least 100, EUR; or c. It has to receive from the insurers on behalf of which it acts the amount of at least 50, EUR (copy of RDs + proof of transmission by or fax) and it has to have in its bank accounts the amount of at least 50, EUR;

7 - The fulfillment of the criteria mentioned before are verified by the Management Committee which decides the date of the verification, without discrimination for all the correspondents, anytime it is considered to be necessary, but at least once each calendar year. - In practice, they are verified at a random date (the third day, the twenty-second day of a month, etc.) which is anterior to the date of the request; - The proofs are bank documents certified for conformity to the original by the manager of the correspondent;

8 - The quality of correspondent is obtained on the basis of a decision issued by the General Assembly; - The quality of correspondent is lost on the basis of a decision issued by the General Assembly, at the proposal of the Management Committee, following the lack of fulfillment of the criteria mentioned before or of the provisions of the Mandate Contract;

9 - The relationship between the Romanian Bureau and its approved correspondents is based on the provisions of the Mandate Contract; - The first Mandate Contract was signed in It was updated on ; - On , a new contract was signed, due to the changes within the Green Card System, with all the approved correspondents at that date;

10 The Mandate Contract provides the following chapters: I. Preliminary provisions; II. The object of the contract; III. The duration of the contract; IV. How to obtain/lose to quality of correspondent on Romanian territory; V. The approval and the withdrawal of the quality of correspondent; VI. The rights and obligations of the Romanian Bureau; VII. The rights and obligations of the correspondent; VIII. Others;

11 Out of the previously mentioned chapters, we note the following: - The right to handle ends: a. At the date of the request to cancel the contract issued by the correspondent; b. At the date of the withdrawal by the Romanian Bureau, as sanction, of the mandate given to the correspondent;

12 - The Romanian Bureau can withdraw the mandate given on the basis of the present contract, if: a. the correspondent does not comply with the new provisions established by the Bureau within a maximum of 3 months from the date of notification; b. 5 justified (breach of national law and/or I.R.) complaints are received within an interval of 3 months for the approved correspondent;

13 c. within an interval of 3 months, the correspondent handles without having a mandate 2 or more claim files; d. the correspondent does not pay the annual tax provided in the contract until of the current year. The annual tax is established in respect to the no. of notified claim files in the previous year (ex.: 500 EUR < 200 files; 1000 EUR 201>500 files 2500 EUR >1001 files). If it is not paid in due time, penalties of 0.2 % / day of delay are applied;

14 - At the analyzing meetings, the correspondent is invited; - The decision of the Management Committee will be communicated to the correspondent as well; - In case of withdrawal of the mandated with the title of sanction, the former correspondent cannot re-obtain this quality earlier than one year from the date of the respective sanction; - When the right to handle ends, the correspondent will present the Bureau with all its claim files, regardless of their current stand;

15 After the withdrawal of the mandate, the correspondent no longer has the right to handle any claim file

16 - Rights of the Romanian Bureau: 1. To establish and to modify the criteria for the correspondent; 2. To approve and to withdraw the mandate of the correspondent; 3. For good reasons related to the manner of handling, the Management Committee can decide for the Romanian Bureau to take over the handling of certain claim files from the correspondent; 4. To establish the annual tax which the correspondent is obliged to pay towards the Bureau;

17 - Obligations of the Romanian Bureau: 1. To approve the request for nomination received for the correspondent, if it fulfills the conditions established by the Romanian Bureau; 2. To send to the correspondent all the documents it owns or received in respect to the claim files of the correspondent; 3. At the justified request of the correspondent, to make the necessary steps towards other national Bureaux so that the correspondent can handle the claim file (ex.: interceding of the Bureau in case the insurer does not respond);

18 4. To pay the amounts provided in article 4.8 of the I.R. Upon receipt of a request from the correspondent to recuperate the amount not honored by the insurer, the correspondent provides our Bureau with the entire claim file, obligatorily including the claim notification towards the insurer, the coverage confirmation, the payment towards the TP and external costs, the reimbursement demand with proof of transmission by fax or . If the conditions in the Romanian legislation and the I.R. are fulfilled, the payment towards the correspondent is made (compensation + external costs), and the handling fee + late interests is to be paid after the amount is recuperated from the Guaranteeing Bureau; 5. To inform the correspondent of the modifications related to the Green Card System;

19 - Rights of the correspondent: 1. To be approved if it fulfills the criteria; 2. To receive all the claim files it has received a mandate for; 3. To receive reimbursement for the costs it made with the handling and settling of claim files;

20 - Obligations of the correspondent: 1. To handle the claim files in strict conformity to the Romanian legislation, the provisions of the I.R. and those of the Mandate Contract; 2. To make an adequate defense (in front of the courts, of the public or private authorities or any other) of the interests of the insurers it represents, but respecting the right to be compensated of the TP;

21 3. To request the Romanian Bureau to intercede to other Bureaux in case the presumable insurer does not answer to the request for coverage confirmation within a period of maximum 30 days from the date the correspondent was notified of the respective claim file. In practice, if a complaint is received from the TP and the motivation received from the correspondent is that the handling was not done because the presumable insurer did not respond, but the correspondent did not notify our Bureau within 30 days, the complaint is considered to be justified and if 5 such complaints are received within an interval of 3 months, the contractual sanctions are applied up to the withdrawal of the quality of correspondent;

22 4. To not condition the payment towards the TP to the receipt of the amount from the insurer; 5. To inform the insurer, at request or on its on volition, of claim files with serious consequences in relation to the manner of settling the claim file; 6. To urgently inform the insurer and to send to our Bureau any claim file whose settling can lead to a `conflict of interests`;

23 7. To urgently send to our Bureau any claim file for which it does not have a mandate or the claim files with Frontier Insurance. If such a handling is done, the correspondent is obliged to pay to our Bureau, with the title of sanction, the received handling fee and, in case it does not obtain the reimbursement of the compensation/external costs, it does not have the guarantee of the our Bureau; 8. To urgently transfer to our Bureau the claim file in which the foreign insurer denies the validity of the insurance;

24 9. To support any penalty and pecuniary sanctions to which it is obliged by our Bureau, following an non-adequate handling of claim files; 10. To provide to our Bureau, within 15 days, any information requested;

25 The provisions of the Mandate Contract lead to a better regulations of the correspondents activity. It is permanently analyzed if the correspondents fulfill the contractual provisions. If it was/is the case, sanctions were/are applied. Up to now, pecuniary sanctions were applied and even the withdrawal of quality of correspondent (June 2013).

26 The only case of withdrawal of quality of a correspondent = Diana Claims Adjuster s Bureau ( )

27 The causes of the withdrawal: 1) The lack of the capacity to compensate the damaged parties within the conditions of the Romanian legislation; 2) No payment of the annual tax to Romanian Bureau for 2013

28 At the date of the withdrawal, it represented 48 foreign insurers, whereby 5 Spanish.

29 After approx. 9 months, BIG DISCOVER!!! In some claim files, Diana Claims Adjuster s Bureau received the amount of the demand of reimbursement from the insurer, but without paying the TP. At the present there are 34 claim file with a total reserve of 150,000

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31 We hope our presentation has been of interest to you. If for the moment you do not have any questions, you can always contact us (by fax or , according to the I.R. ) later on.

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