The MNB has been notified by the Romanian Financial Supervisory Authority (ASF) that the liquidation of Astra Insurance Company had commenced. Hungarian clients with high amount, non-motorist third-party liability insurance (MTPL) claims and non-insurance creditors are required to submit their claim admittance requests to the liquidator by 18 January. The remaining Hungarian clients and parties with damage claims – they are the vast majority – will be indemnified from the guarantee funds. The still active contracts of Astra’s clients may be terminated by the liquidator.
Upon the inquiry of the Magyar Nemzeti Bank (MNB), the ASF informed the MNB on 7 January 2016 that the liquidation of Societatea Comerciala de Asigurare-Reasigurare Astra S.A. (Astra Insurance Company) had commenced even though, despite Romanian statutory regulations, the relevant court ruling had not been published in the official Romanian journal yet (it should have been published within 20 days of the court ruling, followed by a 7-day period when appeals may still be lodged against the ruling). As such, the ruling is not definitive, and the liquidator has not sent information to potential creditors either.
According to the information published on 22 December 2015 on the website of the insurance guarantee fund (FGA) operating in conjunction with the Romanian Financial Supervisory Authority (ASF), creditors may submit their claim admittance requests to the liquidator against the insurance company until 18 January 2016. This is consistent with the information published on the website of the Romanian Astra Insurance Company. The appointed liquidator is KPMG Restructuring SPRL (contact details: Bucharest, DN1, Ploiesti-Bucharest Street, no. 69–71. 1st District, tel/fax: +40 372 377 700).
KPMG Restructuring SPRL is to verify the claims and publish the preliminary Table of Claims by 29 January. The deadline for finalising the list of creditors is 24 February, with the first creditors’ meeting held on the same day.
In the context of the liquidation, the 18 January submission deadline essentially affects Hungarian creditors with non-insurance contracts and clients with non-motorist third-party liability (MTPL) insurance claims – e.g. home, travel or casco insurance claims – or premium claims exceeding 450,000 lei (around HUF 30 million). This is because in the case of non-MTPL claims, the portion above 450,000 lei is not covered either by the Hungarian, or by the Romanian guarantee fund. Pursuant to an EU directive, clients may lodge creditor’s claim in Hungarian as well; however, the title of such reports is mandatory (“Claim Admittance Request”) and has to be included in Romanian (“Cerere de admitere a creanţei”).
The indemnification provided by the Romanian and the Hungarian guarantee funds is to be separated from the liquidation procedure. Consumers with damage claims against the MTPL policyholders of Astra’s Hungarian Branch Office are still entitled to report their justified MTPL claims to the Indemnity Account of the Association of Hungarian Insurance Companies (MABISZ) for reimbursement. Once the court ruling ordering the liquidation procedure becomes definitive and the Hungarian and Romanian guarantee funds reach an agreement (the latter of which, in the MNB’s understanding, is imminent), outstanding justified MTPL claims will be settled by the MABISZ Claims Guarantee Fund.
Other, non-MTPL insurance claims and any unearned insurance premiums paid by Astra policyholders shall be reimbursed by the FGA. The affected policyholders may submit a written request to that effect to the FGA for a period of 90 days after the ruling on the liquidation procedure becomes definitive. The relevant forms are available on the website of the Hungarian Branch Office of Astra Insurance Company. The MNB has requested the Romanian Financial Supervisory Authority to permit the submission of requests in the Hungarian language as soon as possible, and received a positive response in this regard. At the same time, there is no information on whether the FGA will appoint a claims adjustment representative in Hungary to ease the indemnification process.
Thanks to the repeated calls of the MNB, the vast majority of Astra’s former 169,000 Hungarian MTPL policyholders have already switched to other insurance companies. Pursuant to a legislative amendment adopted last year, remaining Astra policyholders – around 16,000 MTPL clients – may terminate their MTPL policies by simply recontracting with another insurance company (i.e. they need not terminate their existing contracts with Astra Insurance Company). Indeed, this is in their best interest, given that Astra Insurance Company is unable to render further services (e.g. it is unable to issue premium receipts or green cards, book premium payments or enter data to the claims history records).
On 7 January 2016 the ASF informed the MNB that the liquidator of Astra Insurance Company would consider the termination of all Hungarian MTPL policies. Analyses in this regard are still in progress. Under Romanian law, the liquidator has 3 months to carry out such termination after the commencement of the liquidation on 3 December.
For the protection of Hungarian consumers, the MNB – which is not the supervisory authority of Astra Insurance Company – provides information on its own website continuously with respect to the indemnification of clients of the Romanian Astra Insurance Company and parties with damage claims against it. Up-to-date information about the actions to be taken in relation to insurance policies and the relevant rules are posted on the websites of MABISZ and the FGA.
Magyar Nemzeti Bank