Motor Insurance

Table of Contents:

1. BACKGROUND 3
2. TYPES OF COVERAGE 3
3. TYPES OF MOTOR INSURANCE POLICIES 4
3.1. MERCHANDISE INSURANCE 4
3.2. CARRIER LIABILITY INSURANCE 8
3.3. VEHICLE INSURANCE 9
3.4. THIRD PARTY LIABILITY INSURANCE 12
3.4.1. THIRD PARTY LIABILITY INSURANCE IN ROMANIA 12
3.4.2. INTERNATIONAL THIRD PARTY LIABILITY INSURANCE 14
4. GREEN CARD 16
5. BAAR - ROMANIAN MOTOR INSURERS' BUREAU 17
6. UNIFORM AGREEMENT 21
7. INTERNAL REGULATIONS 26
8. AUTO INSURANCE PRODUCTS IN ROMANIA 38
9. BIBLIOGRAPHY 45
ANNEXES 46

1. Background

Any vehicle driven on public roads must have a certain level of insurance.
The motor insurance appeared for the first time at the beginning of the 20th century and was included in the category of insurance for accidents. In the second half of the century, due to the development of road transportation, impressive increase in the number of cars and their diversification, motor insurance was no longer only a type of insurance for accidents but became a new type of insurance as such. The total amount of insurance premiums in the case of motor insurance was in fact already higher then the total amount of insurance premiums cashed in for all other types of accidents.
In fact, the need for motor insurance appeared short after the first cars were introduced at the end of the 19lh century, although at that time the number of cars was quite limited as only few could afford it. In Great Britain, the first motor insurers (“Law Accident” and “General Accident”) date from 1900 and were followed at the beginning of the 20th century by “Car and General” (1903) and “Motor Union” (1906). After the First World War, road transportation flourished mainly as a result of the new stimulating trend in the economy and the development of the car manufacturing industry. Simultaneously with the development of road transportation, there has been also an increase in the number of accidents and the lack of insurance made it