Insurance of the financial competence of carriers
In the freight or transportation business? You need a good insurance of your financial competence from RENOMIA.
Financial competence is proven using:
- business assets
- volume of available funds and operating capital
- operating reserve of up to EUR 9,000 for a period of 12 months for the first vehicle and EUR 5,000 for each additional vehicle used
The basis are the records of vehicles reported to the relevant transport authority. A less costly alternative is a suretyship agreement concluded with an insurance company.
The insurance covers unpaid liabilities due to the insured's insolvency (the capacity to financially cover the proper commencement or operation of road transport).
The financial competence must be ensured and maintained for the duration of the road transport. The adequacy and duration of the financial capacity must be demonstrated by the transport service operator to the relevant transport authority for each calendar year by 31 July of the following year at the latest. If the carrier fails to prove his financial competence to the local transport authority, his transport service concession be withdrawn in an administrative procedure.