Recovery of Motor Insurance Subrogation Claims against Romanian MTPL Insurers
- Talpes.law
- Feb 22
- 6 min read
Legal guide for foreign motor insurers
1. The property insurer's right of subrogation against the MTPL insurer
This article is relevant for motor insurers (CASCO / motor own damage) outside Romania who have paid indemnity to their own insured parties for damages resulting from road accidents caused by persons holding an MTPL (Romanian: RCA) policy taken out with an insurer in Romania. Thus, the foreign motor insurers seek to recover the amounts paid from the MTPL insurer of the person at fault.
From a legal point of view, the applicable mechanism is statutory subrogation. When the foreign motor insurer pays indemnity to the insured, it is subrogated by law to all the rights of the compensated person against the person responsible and their MTPL insurer. The right of subrogation is not a new, separate claim, but the exercise of the original right of the injured person, taken over within the limits of the indemnity paid.
Although the insurance sector is highly regulated and insurance companies operate according to well-defined internal procedures, foreign insurers involved in cross-border subrogation may encounter practical obstacles such as:
systematic delays by MTPL insurers in settling subrogation claims,
excessive requests for documents,
unjustified reductions in the amount of indemnity,
total or partial refusals to pay,
delays in the payment of accepted subrogation claims.
In this context, a structured legal approach is essential for the full and rapid recovery of the outstanding claim.
2. Legal framework applicable to subrogation claims in Romania
The legal basis for subrogation is Article 2210 of the Civil Code, which provides that, within the limits of the indemnity paid, the insurer is subrogated to all the rights of the insured against those liable for the damage, including against their MTPL insurer.
The effects of subrogation are clear:
By paying the indemnity, the foreign insurer is subrogated by operation of law to all the rights of the insured against the liable person and their insurer;
Subrogation applies to the entire amount paid, within its limits;
The subrogated insurer acquires all rights ancillary to the claim, including penalties and interest, and the right to legal costs in the event of a dispute.
Furthermore, the provisions of Law No. 132/2017 on MTPL insurance and Norm No. 20/2017 of the Financial Supervisory Authority (the insurance regulatory authority in Romania) unequivocally establish that if the injured party has contacted their own property insurer, the assessment of damage, technical solutions, and method of determining indemnity are binding towards the MTPL insurer of the person at fault [Art. 19(6) of FSA Regulation No. 20/2017].
The consequence is particularly important for foreign insurers: the MTPL insurer cannot re-evaluate the entire file and cannot arbitrarily reduce the indemnity determined in accordance with the legal rules.
3. Submission of the subrogation demand
The subrogation demand may be submitted in paper form (per postal correspondence) or electronically, through email.
The supporting documents that must be attached to the subrogation demand are as follows:
documents confirming the occurrence of the accident (amicable accident report or police report or other documents from the police);
documents relating to the assessment of the damage (assessment reports, repair estimates, invoices);
proof of payment of indemnity;
identification documents of the vehicles and drivers involved.
When submitting the demand by email, it is recommended to request confirmation of receipt. This can prevent disputes regarding whether or not the subrogation demand was received, as well as the possibility that the MTPL insurer may allege that it did not receive the demand.
If the MTPL insurer fails to confirm receipt, it is recommended that the demand be sent by registered letter with confirmation of receipt or, if the situation so requires, by bailiff.
4. Legal deadlines and penalties for late or non-response
Upon receipt of the complete documentation, the MTPL insurer is required to:
review and resolve the demand within 30 days by issuing a indemnity offer;
make the payment within 10 days of accepting the offer, if the property insurer accepts the offer.
These deadlines are mandatory.
If no response is issued within the legal deadline of 30 days:
the MTPL insurer owes the indemnity requested;
the MTPL insurer owes late payment penalties of 0.2% per day, calculated on the indemnity requested.
The legal penalty is 0.2% per day of delay (approximately 73% per year). The case law of the High Court of Cassation and Justice has established that penalties accrue from the day following the expiry of the 30-day period.
This penalty has a significant financial impact, especially in the case of prolonged delays.
5. Total refusal to pay – contesting civil liability
During the administration of the claim file established following the submission of the subrogation demand, it is possible that the MTPL insurer in Romania may refuse to pay any indemnity. Total refusal to pay occurs, for example, when the MTPL insurer disputes the fault of the insured driver.
In this situation, the foreign motor insurer may attempt to supplement the documentation submitted by presenting additional documents (e.g., accident sketch, statements from the persons involved, additional documents from the police), accompanied by a written notice requesting payment of indemnity.
If the MTPL insurer does not pay even after receiving the notice and additional documents, the only solution is to file a civil lawsuit with the court requesting that the insurer be ordered to pay indemnity.
The court will examine all the circumstances of the accident and will also summon the driver responsible for the accident. The evidence attached to the subrogation demand or subsequent notice may be supplemented (for example, with a technical expert report). If the court finds the MTPL-insured driver at fault, it will order the MTPL insurer to pay the amounts claimed in the subrogation demand, as well as late payment penalties and court costs.
6. Partial refusal to pay
Other differences may arise if the MTPL insurer, although acknowledging the liability of the insured driver, eliminates or reduces certain elements of the indemnity, such as
VAT
indemnity for the loss of use of the damaged vehicle during the repair period,
adjustment of the repair cost based on alleged "market prices in Romania,"
challenging the classification as a total economic loss,
damage assessment costs.
Such situations have been analyzed in practice, and courts often rule in favor of the foreign motor insurer and order the MTPL insurer to pay the refused amounts. For more details on this issue, please refer to our other blog article, which analyzes it in detail.
In the case of a partial refusal, the solution is similar to a total refusal:
in a first stage, a new legal notice, indicating the legal basis (Art. 2210 of the Civil Code, Law No. 132/2017, ASF Norm No. 20/2017) and the relevant judicial practice, possibly supplementing the request with certain new documents;
if the refusal persists, bringing an action for unpaid differences and penalties.
Law No. 132/2017 provides that if the parties cannot agree on the amount of indemnity, the amount that is not subject to dispute shall be paid by the MTPL insurer, and for the remaining amount the motor insurer may refer the matter to court. It is important for the MTPL insurer to mention that it reserves the right to recover the refused amount through legal action, in order to avoid the receipt of the accepted amount being interpreted as a waiver of the remaining amount.
If the foreign motor insurer wins the case in court, the direct consequence of refusing to pay is the application of late payment penalties of 0.2% per day on all amounts refused for payment. Since the duration of dispute resolution can be even more than a year, the accumulated penalties can amount to considerable sums, which will compensate the foreign motor insurer for the damage caused by this delay.
7. Legal proceedings in Romania and recovery of late payment penalties
If amicable recovery fails, the action is brought before the competent court in Romania.
The following may be requested during the proceedings:
indemnity;
late payment penalties of 0.2% per day of delay;
adjustment of indemnity in line with inflation;
legal costs (attorney's fees, court fees, costs of expert reports).
The final decision is enforceable and may be enforced if payment is not made voluntarily.
8. The role of the Romanian lawyer in the recovery of subrogation claims by property insurers
For a foreign property insurer, working with a Romanian lawyer specializing in MTPL and subrogation litigation offers concrete advantages:
prior legal assessment of the case;
drafting of demands and notices in accordance with local practice;
monitoring of deadlines and calculation of late payment penalties;
direct communication with MTPL insurers;
representation before Romanian courts;
management of enforcement proceedings.
A legal strategy adapted to the regulatory framework and judicial practice in Romania allows for full recovery of the outstanding claim, including penalties and court costs.
Authors: Loránd Benő, David Talpeș
For more details, visit us, book a phone, or video call — see our contact information below. We speak English, German, Italian, Hungarian, and Romanian.
Talpeș - SCPA (Law Firm)
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400089 Cluj-Napoca, Romania
tel.: +40364133211
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