“City Insurance” : DEADLINE FOR SUBMITTING APPLICATIONS FOR PAYMENT TO THE INSURED GUARANTEE FUND EXTENDED UNTIL JULY 20, 2022
Deadline July 20, 2022: To any interested party claiming an insurance right against City Insurance S.A.
The Financial Supervisory Authority (A.S.F.) ordered, by Decision no. 1148/17.09.2021, the withdrawal of the functioning license of the Insurance-Reinsurance Company City Insurance S.A. (City Insurance S.A.) and the promotion of the request to open the bankruptcy proceedings, based on the applicable legal provisions. City Insurance S.A. is not allowed to conclude new contracts and in case of renewal, the policyholders shall choose another insurance company.
The Bucharest Court decided on February 9, 2022 the bankruptcy procedure for City Insurance SA.
All policies issued by City Insurance SA. are taken over by FGA (INSURANCE GUARANTEE FUND) up to (this limit is valid for any insurance policy, including RCA policy), meaning that both applications for opening of the damage file, as well as those for the payment of compensations will be sent to FGA.
If the amount of compensation of an insurance creditor is higher than RON 500,000, the amount that exceeds this ceiling can be recovered by the insurance creditor in the bankruptcy proceedings, by enrolling in the credit table.
The insurance creditor can follow separately, in addition to the non-contentious administrative procedure provided by Law no. 213/2015 for the collection of the compensation from FGA and the insolvency procedure of the insurer provided by Law no. 85/2014, in order to recover his claim from the assets of the insurer in bankruptcy, including for the amount due that exceeds the guarantee ceiling provided in art. 15 para. (2) of Law 213/2015.
The Insured Guarantee Fund (FGA) having taken into consideration the court decision regarding the opening of bankruptcy proceedings for the Insurance-Reinsurance Company City Insurance SA,which remained final on April 20, 2022 announced that the deadline for the submission of requests to the Insured Guarantee Fund is the 20th of July 2022.
According to Art. 14 of Law no. 213/2015 updated, any person claiming an insurance claim against the bankrupt insurer may submit a reasoned request to this effect, addressed to the Insured Guarantee Fund, the latest within 90 days starting either from the date the relevant court decision became final or from the date of birth of the right of claim, if it was born later, under the sanction of forfeiture of rights.
In the specific case the deadline for submitting applications for payment to the Insured Guarantee Fund is July 20, 2022. If the right of claim was born after July 20, 2022, the period of 90 days runs from the date the right was born.