In the context of the imminent bankruptcy of City Insurance, one of the largest insurance companies in Romania, with over 3 million insured parties, the Romanian Government issued an emergency ordinance amending the law regarding the Insured Guarantee Fund (”IGF”), which regulates the possibility of the IGF to perform payments to creditors proving a certain, liquid and due receivable even before the bankruptcy of the insurance company is declared, within the limit of RON 500,000 per each insurance contract.
In this sense, the creditor has to submit its request in 60 days from the date the license of the insurer was retracted by the Authority for Financial Supervision. In City Insurance’s case, the license was retracted on 27th September 2021.
PETERKA & PARTNERS Romania remains at your disposal in view of providing more information connected to this recent legislative change, as well as in case you may need related legal assistance related to this topic.