An insurance policy is an instrument that protects you from financial loss. As regards terminology, the entity which provides insurance is known as an insurer, an insurance company, or an underwriter. The person or the entity covered by insurance is called an insured, while the person who buys insurance is called a policyholder.
If you want to come to Romania for a long or a short period of time, you need to know a few essential things about the Romanian insurance system, more precisely insurance for immigration.
If you are a non-EU citizen and you want to come to Romania, you will need a visa and in the visa procedure, you will need insurance. So you will have to provide proof at the Romanian Embassy that you are insured for your travel.
The period that you want to stay in Romania is a very important aspect because you cannot come to Romania for long-term purposes without tourist insurance.
Be aware of the fact that you will need to provide insurance that is valid for the whole duration of the visa.
In the Romanian insurance system, there are both mandatory insurances and insurances that you can take out from an insurance company.
Mandatory car insurance
A mandatory insurance in Romania is the car insurance, if you have a car of course. This type of insurance is called RCA and it is for liabilities that you may find yourself in while driving your car, such as an accident.
How does this type of insurance work? Well, if you have an accident based on your fault or if somebody else causes an accident while she/he was driving your car, the persons who incur the damages, instead of going for your assets, will go to the company who insured you and this company is going to pay for the damages. Also, take into consideration the fact that the price of the insurance will go up the next year because of that. So the price of the car insurance also depends on your driver skills, let`s say. If you are a good driver, you will pay less in the future. If you have an accident, you will pay more next year.
Mandatory house insurance
You will need this type of insurance as long as you have a property in Romania. This will insure you against natural disasters such as earthquakes, fire hazards, and floodings.
This is for your car, but it is not mandatory insurance. It is an optional insurance and it is more expensive than the mandatory car insurance us it ensures damages due to your own fault.
How does this type of insurance work? If you have a car accident, while the person who incurs the damages will repair his/her car using your RCA, you will be able to repair yours with the money that the CASCO insurance company gives you.
Optional health risk and accident insurance
This insurance company will insure you in case you have an accident or something else that puts your health in danger happens. For example, if you get ill, the insurance company will give you some money back in order to go to the hospital.
Optional insurance for goods
You can insure your house against fire. For example, this type of insurance will come in handy if you left the stove running and the house caught on fire.
Optional insurance for liability
This is in case you need professional insurance or if you want to insure your house against renters.
Ana – Maria Matahală
Legal Intern R&R Partners Bucharest
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