CASCO Insurances

CASCO Definition

CASCO is an optional insurance in base of which the insurance company pays the compensations for the accidental damages (partial or total) and/ or the thievery (partial or total) suffered by the insured vehicle recorded in the insurance policy.

Normally, the CASCO insurance is offered only for the cars with ages between 8 years (most of the insurers), 12 years (certain insurers) or for the collection cars.

With very little exceptions, the CASCO policies insure only the cars legally registered in Romania (temporarily, permanent or on limited period – leasing). The radiation of the car or the expiration of the registration automatically determins the cessation of the CASCO coverage and the anticipatory cessation of the policy even if the written validity term of the policy has not been reached yet. For the insurance of the car after this moment, there are other types of special insurances. 

Attention : The CASCO insurance must not be confused with the CAL, civil auto liability. While CASCO offers coverage for the damages at your own vehicle, your CAL insurance covers the material and/ or corporal damages suffered by other persons after a road accident caused by your fault.

This insurance is optional, which means that the decision to conclude a CASCO insurance contract is at the will of the vehicle owner, without being mandatory by law. Although, according to the legislation that regulates the leasing operations, the sponsor has the obligation to assure the vehicles traded in leasing, this obligation/ provision does not change the nature of the CASCO insurance contract, this remaining an optional insurance contract. According to the G.O. nmb. 51/1997 regarding the leasing operations and the leasing companies, with the subsequent modifications and completions, the leasing companies have the obligation to insure the vehicles. The insurance bonus is paid by the user, but the policyholder is the leasing company. 

Categories of Insured Risks

-      partial damage (accident in traffic, regardless who is guilty; damage in the parking with known/ unknown author) = damage for which the reparation does not cost more than a limit settled by the insurer (normally 75 – 80% from the IA- insured amount).
-      total damage (the situation of total damage is established by the insurer based on a reparation estimate or on a technical memorial from which emerges that the car can no longer be brought to the safety parameters specified by the producer; both documents are prepared by the specialized and authorized service of the RAR (Romanian Auto Register)).
-      partial thievery (the theft of some parts of the car; alos in this situation are included the damages caused to the car by the thief : broken window, damaged board, even in the cases of thievery attempt), total thievery (the total disappearance of the car). 

Be careful what is the number of the keys and remotes you own! At the conclusion of the policy, you are asked to declare the number of keys and remotes that you own in the car. In case of total thievery, the insurer will ask you to expose all these keys and remotes. If they are absent or if you failed to declare them (the insurer verifies at the producer the total number of the keys issued and registered in the car’s computer) the compensation will not be paid. There is an exception in the case in which, during the car thievery, the driver was deprived of the keys by violence and threat.

According to the law, any car damage must be claimed at the police (at the section within the rage of which the damage was produced/ found out). Almost all the insurers will ask you to expose the documents issued by the police, in order to compensate you. 

The insurer will allways compensate the effect of an insured risk, but not the cause also. For example : if the breaking of a pivot while the car is running leads to the overturning of the car, the insurer will compensate the reparation of the car, but not the pivot’s cost.

In all cases, the insurer will compensate the damage’s equivalent value, but not the applicable franchise and (possible) the rest of the rates to be paid at the policy. The franchise is normally established separately for every 4 categories, but there are cases when it is unitary expressed, for every damage. 

THE INSURED AMOUNT

The car is insured at the most closed value to the real one.

The value is established by the insurer as follows :

-      it is settled the value of the car as new (what was the value of the car when it had 0 km on board) : based on the acquisition invoice as new or based on the catalogue value (Schwacke, Eurotax, Apia)
-      at the value of new a wear is applied, based on each insurer’s own table, depending on the age of the car (calculated from the fabrication date), deducted fron the value of new, obtaining the remaining value (the present value) of the car.
-      optional, the value of the supplementary endowments is added, obtaining the insured amount (IA). 

Attention at the registration of the car’s endowments in the policy : anything that is not in the standard endowment of the car (that on the producer’s catalogues) and it is not registered in the policy, is not insured.


THE COMPENSATION

After the occurrence of an insured risk, in order to obtain the compensation, the first step is for the damages inspectors of the company where you have concluded the insurance policy or for the Road Police reppresentatives, to find out the damages, if the car was involved in a road accident.

After finding out, the damage file will be opened, having two possibilities further :

-      you can go with the car for reparation in a service recommended by the insurance company (it is the most suitable version because, in this units exist direct discount contracts between the insurer and the service, so as you can pick up the car immediately after the reparation was made).
-      you can go to a service you choose (if it is not other way stipulated in the policy) with the mention that there is the possibility for your CASCO insurer not to own a direct discount contract with this one. In this situation, when there is no direct discount, you may wait for the insurer to pay to the service the equivalent value of the reperation (usually within maximum 15 days) or you may pay the reparation from your own budget, following to recuperate the amount you paid (proved by documents and receipts) from your insurer (the same period of 15 days stays valid). 

Mentions :

If you were involved in a road accident from which it emerged only the damage of your own vehicle (skidding, the car found hit in the parking, etc), you are no longer obliged to go to the Police for finding out. You may go directly to the CASCO insurer, who will issue the document of entering in the reparation for your car.

In the case of a collision, where you have used a friendly finding form, you may go with this directly to the CASCO insurance company in order to open the damage file. If you were not guilty fro the occurrence of the accident and you have resorted to the CASCO policy in order to repair your car, your insurer will recuperate the equivalent value of the compensation from the CAL insurer of the guilty person. 

The Necessary Documents for the Conclusion of the CASCO Insurance

  1. The buying invoice of the motor vehicle as new (if it exists)
  2. The motor vehicle’s coupon or the Identity Card
  3. The identity card – physical persons or the Unique Registration Code – juridical persons. 

Attention : In the case of a CASCO insurance, your rights and obligations as a policyholder, but also those of the insurance company, are those established in the insurance contract concluded by you.

The CASCO insurance conditions may differ from an insurance company to another, both regarding the insured risks, the excluded risks, the value of the franchise (if it is the case) and other specific elements, and also regarding the insurance bonuses and their payment conditions. As a conseguence, in order for a comparison to be relevant for the values of the insurance bonuses practiced by the companies, it is necessary for the services it offers to be comparable.

In all the cases, the insurance company has the obligation to pay you the equivalent value of the damage according to the contractual conditions, less the applicable franchise (if it is the case) and (possible) the remaining rates to be paid at the policy.

The franchise is that part of the damage value that is beared by the owner of the vehicle and can be established by the insurance company as a fixed value or as a percent from the insured amount or from the damage value.

So, it is very important for you, before the conclusion of an insurance contract, to analyse the available offers from the market. Likewise, you must know the fact that, before the conclusion of any insurance contract, you have the right to receive a minimum set of information regarding the company and the proposed insurance contract. 

THE COVERED RISKS

The insurer grants the compensations to the Policyholder or, as the case, to the appointed Benaficiary, in the limit of the insured amount, for :

-      the damages caused to the vehicle by collisions, clashes, overturns, scratches, falls (including with the occasion of the transhipment), the falling of some corps on the vehicle;
-      the theft of the vehicle or of some of its component parts or pieces, as well as of the damages caused to it as a conseguence of theft or of the theft attempt;
-      the damages caused to the vehicle by fire, explosion, smoking, staining, carbonization or different distructions, as a conseguence of fires;
-      the damages caused to the vehicle by floods, hurricane, earthquake, landslide or landslip, heavy shower of rain, hail, lightining, the weight of the snow or ice layer, the snow avalanche, the mechanical action of the running waters or of the objects carried by the waters;
-      the damages caused due to the supplementary endowments mounted at the vehicle, declared by the Policyholder in the questionnaire-request, the value of which being included in the vehicle’s insured amount, only if these damages emerged as a conseguence of the occurrence of the insured risks;
-      the damages caused as a conseguence of the insured risks of the spare parts or of the vehicle’s parts while they were dismantled for the reparation or maintenance;
-      the damages caused to the vehicle as a conseguence of the measures taken for its salvation;
-      the expenses made for the trasnportation of the damaged vehicle at the workshop that can perform the reparation, the closest to the accident place, or at the place of the vehicle’s housing, if it cannot be moved by its own force. 

How is the Policy Concluded?

The insurance policy is concluded based on the Policyholder’s declarations from the questionnaire-request, only after the performance of the risk inspection of the vehicle by the Insurer’s representative (the finding out of the vehicle’s state at the conclusion of the insurance).

The questionnaire-request, the vehicle’s inspection report, together with the annexes at the policy, the clauses and any other declarations made in writing by the Policyholder, are an integrant part of the policy.

At the conclusion of the insurance policy, the applicant must present the original documents of the vehicle : the registration certificate and the identity card; in the case of the new vehicles, bought directly from the Romanian dealres and producers, the policy can be concluded also based on the purchase invoice and on the provisory circulation authorization.

The insurance is considered concluded when the Insurer issues the insurance policy and after the policyholder makes the payment of the insurance bonus, respectively of the first bonus rate, and it is valid exclusively for the vehicles and the risks specified in the policy.

Consultation (advice) 
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