The Civil Liability insurance won't be paid in full

The compulsory Civil liability insurance will not be paid outright, decided yesterday MPs when considering the amendments to the Bulgarian Insurance Code (BIC) at first reading. The rejected amendments provided the insurance to be paid altogether, thus abolishing the option of deferred installment payments.

The proposal, which was approved by the Council of Ministers was initiated by the Financial Supervision Commission and the arguments for requesting such an amendment referred to the vicious practices imposed by the payment of insurance policies on a piecemeal basis. The existing legal provision for early termination of the insurance for non-payment of an installment according to the Commission and CM could lead to a single conclusion of compulsory policy by the solely payment of the first deferred contribution.

This could cause the dead-end situation, in which the insured person has received a policy, which actually does not provide damage liability coverage in case of a traffic accident.
In this way, the compensation shall be borne by public funds of the Guarantee Fund, which are accumulated by contributions from bona fide insured persons, stated the motives of the Bill. The payment of contributions also leads to confusion in calculating the scope of the insurance coverage, which according to the EU insurance regulations must not fall below 90% in terms of the car insurance. According to statistics, 80% of drivers in Bulgaria have concluded the compulsory Civil Liability insurance.

The lawmakers did not adopt the proposal for the abolition of the stickers, which simultaneously with the insurance policy certify the availability of a valid Civil Liability insurance. In its standpoint, the Council of Ministers argued that the insurance stickers must be repealed due to the introduction of online insurance policies. The electronic mechanism that is already operative, generates a specific code (individual policy number) in real time, thus terminating the vicious practice in financial reporting on policies with a great delay so that the deliberate mistakes en masse in terms of the insurance receipt-books to be avoided.

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