One of the most acute problem reflected in the local press recently was the issue of compulsory insurance against external civil automotive liability Â« Green Card Â» . The solution for this issue has consumed the thoughts of the whole society.    There were many problems assumed, including the competitive one, in special speculation on the cartel agreement.

     The importance of this problem is dictated by the number of actors involved in this market, as these economic agents as  providers of services of Insurance services issuers compulsory insurance against external civil automotive liability Â« Green Card Â» , but especially by the consumers of this product which are almost all holders of vehicles in the country.

     In this regard, starting from the purpose of the Competition Law No 183 of 11.07.2012, which is to regulate relations related to protecting, preserving and enhancing competition in order to promote the interests of consumers Competition Council initiated based on a complaint, an investigation of the case.

     During this investigation was resolved that compulsory insurance against external civil automotive liability Â« Green Card Â» is subjected to uniform stable rules internationally by the General Regulation of the Bureau Council .

     At the same time, the issuers  of the insurance certificate  “Green Card” are unable to compete on price, in accordance with the Law on compulsory insurance against civil liability for the damages cased by the vehicles, and with the Government Decision No 318 of 17.03.2008. According to this Decision, the premium charged by issuers of insurance certificate “Green Card” is established by the National Commission of Financial Market and can not be changed by insurers.

     Thus, insurance companies regardless of their number in a given market and because of the existing excessive regulations are unable to influence the price, output, product quality, product variety or innovation that could lead to increase of consumer welfare.

     As the result of Investigation report and these findings, the Decision of the Plenum of the Competition Council was published No SSP -16 of May,16 2014 (http://competition.md/public/files/uploads/decizii/Decizia%20Plenului%20Consiliului%20Concuren%C5%A3ei%20Nr.SSP-16%20din%2016%20mai%202014.pdf), which resolved that the identified problems during the investigation are determined by the excessive regulation of the sector of compulsory insurance against external civil automotive liability .

     It was decided to terminate the investigation of the case initiated by the Disposal of Plenum of the Competition Council, as during its deployment there were not found sufficient evidence of infringement of the Competition Law No 183 of 11.07.2012 which would justify the application of remedies or sanctions.

     However, in order to intensify joint efforts for market liberalization, promotion of competition and undertaking the best practices of the European Union, this decision will be informed of the Government of the Republic of Moldova and the National Commission of Financial Market.