Motor Vehicle Liability Insurance (RCA) is a contract concluded between an individual or a legal person who owns a vehicle and an insurance company with the right to offer RCA insurance on the territory of Romania. The owner of a vehicle is required to have a valid RCA contract for the entire period in which the vehicle is registered, even if the vehicle is not used. The RCA insurance has two purposes: the financial protection of the person responsible for an accident and the financial protection of the injured person after an accident.

The insurance premium is influenced by the damage history for a reference period (policyholder's claim record, with one car). Direct settlement, an additional service provided in the RCA contract at an additional charge, allows the injured party to contact, in case of damage caused at the fault of a third party, their own RCA insurer.

After suffering damage as a result of an accident caused by a vehicle, the injured party can contact the insurer of said vehicle and submit the fact-finding report and/or the authorisation for repairs issued by the police or, as the case may be, the “Amicable Car Accident Settlement” form.

The compensation is the amount paid by the insurer to cover the damage. Compensation is paid by the RCA insurer within a maximum of 10 days from the date of the injured party's acceptance of the compensation offer made by the RCA insurer or from the date of the final court decision or the alternative resolution of the dispute.