Infrastructure projects are collateral victims of City Insurance bankruptcy. No less than 43 contracts for highways and national roads have letters of guarantee issued by City Insurance.
Enter the PHOTO Gallery
Withdrawal of the City Insurance operating license produced a real earthquake in the insurance market. The most affected from the bankruptcy of City Insurance are the drivers who have the car hit by an insured in City, who will find it harder to recover the damage money , and only within the limit of 100,000 euros. However, in addition to drivers, the other partners of the insurance colossus will also suffer.
Among them, collateral victims are even the entrepreneurs who have contracts for the execution of infrastructure works. According to the legislation, they must submit a letter of bank guarantee to the National Highway Company, which is usually in the amount of 10% of the contract value. According to Economedia.ro , it seems that 43 contracts for highways and national roads have letters of guarantee issued by City Insurance, the total value of the guarantees being of almost one billion lei.
Infrastructure projects need new letters of guarantee after the bankruptcy of City Insurance
The Letters of Guarantee issued by City Insurance for road infrastructure works are valid and in accordance with Law no. 85/2014 on insolvency prevention and insolvency proceedings, “on the date of the final decision to open bankruptcy proceedings, the insurance policies concluded by the reinsurance insurance company shall cease by right within 90 days”.
For the time being, the Financial Supervisory Authority has decided to withdraw the operating license, a decision also published in the Official Gazette, but the competent courts have not yet opened the bankruptcy of City Insurance. As a precautionary measure, CNAIR will ask the contractors to replace the letters of guarantee.
decides to open bankruptcy proceedings and at the same time will request the Contractors to replace the letters of guarantee issued by Societatea de Asigurare – Reasigurare City Insurance SA with other letters of guarantee issued by other institutions, in accordance with legal provisions, in order to ensure valid guarantee instruments for road infrastructure works contracts “, announced CNAIR.
Note: This article has been indexed to our site. We do not claim legitimacy, ownership or copyright of any of the content above. To see the article at original source Click Here
Gildan Men's Crew T-Shirts, Multipack, Style G1100
$19.97 (as of June 23, 2024 21:03 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Marvel vs. Capcom Fighting Collection: Arcade Classics - PlayStation PS4
$49.99 (as of June 24, 2024 21:06 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
DaVinci Gourmet Natural Agave Syrup, 25.4 Fluid Ounce (Pack of 1)
$9.99 (as of June 24, 2024 21:06 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
2024 WiFi Extender Signal Booster, Internet Wireless Repeater for Home Coverage up to 9277Sq. ft and 40 Devices,WiFi Extenders Signal Booster for Home,Repeater with Ethernet Port & Access Point.
$19.99 (as of June 24, 2024 21:05 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
