A draft amendment to the RCA Law, currently under debate in Parliament, is sparking outrage among auto repair shops, transport companies, and consumer protection organizations. The proposed changes would transfer almost all the rights of drivers affected by accidents to insurance companies, endangering an economic sector that generates over 12% of Romania’s GDP.
According to the Auto Service Operators’ Association (POSA), the proposed modifications would give insurers total control over compensation and repairs, allowing them to unilaterally determine the value of damages, the repair shop to be used, and the payment deadline.
“These changes would force thousands of independent repair shops out of business, causing Romania’s economy to lose a sector that contributes significantly to GDP and to tax compliance. We cannot accept a market dominated by a handful of insurance companies to the detriment of citizens and fair competition,” stated representatives of POSA (the Auto Service Operators’ Association of Romania).
Industry representatives warn that the proposed provisions create a major conflict of interest — something prohibited in European countries such as Germany. The Financial Supervisory Authority (ASF) and Parliament must stop this law; otherwise, Romania would become the only EU country where RCA policyholders lose the right to choose their repair shop and cannot contest compensation decisions.
The law would have devastating effects on the economy, directly impacting connected sectors such as auto repair, transportation, logistics, auto parts, and related employment — with an estimated impact of 12% of the national GDP.
The RCA Law is set to be voted on in Parliament. If passed in its current form, insurers will decide how much you pay, how much you receive, and where your car gets repaired. Industry associations warn that this measure would affect not only the rights of over 8 million insured drivers but also the stability of a strategic sector for Romania’s economy.
About POSA – The Auto Service Operators’ Association of Romania
POSA is the employers’ organization representing independent auto repair shops in Romania. Founded to protect the rights of professionals in the auto repair industry, POSA promotes a fair, transparent, and tax-compliant market based on quality and consumer safety. The association fights against abusive practices by insurance companies and defends every driver’s right to receive a complete repair in line with technical and legal standards.
