Bulgaria: changes to insurance cover

New rules have been introduced for third party liability motor insurance and public transport passengers’ accident insurance.

The legislative changes, which are about to be published in the State Gazette, must be introduced by insurers within three months of the date on which they come into force.

Third party motor cover

The changes clarify the territorial coverage and duration of policies by requiring them to state explicitly that:

• cover applies throughout the EU, EEA, Andorra, Serbia and Switzerland and will remain in force (during the policy period) when the vehicle is in another EU member state;
• territorial coverage is not affected by any statement the insured is required to make about the country where the vehicle is usually driven.

Currently, all motor vehicles registered or driven in Bulgaria must have third party liability insurance cover that:

• is annual (except for a few cases such as vehicles with temporary or transit registration);
• extends throughout Bulgaria, all other EU member states and any other countries with reciprocal treaties with the EU;
• operates under a single insurance contract and a single insurance premium;
• may offer a discount if the vehicle is only to be driven within Bulgaria, which can give consumers a misleading impression that they are not covered for accidents in the EU and must therefore buy a Green card certificate.

A further change requires all third party liability motor insurance cover to end at the final second before midnight (23h 59m 59s) on the final day specified in the policy, rather than at the time of day corresponding to that when the policy was issued.

Public transport passengers’ accident insurance

The changes:

• require insurers to provide passengers with a certified copy of the policy and their general terms (so that they can better understand and protect their rights under the policy);
• extend from one to two years (from the accident date) the period needed to establish any work disability resulting from an accident on public transport as permanent.

Law: Regulation No. 24 of 8 March 2006 on the mandatory insurance under Art. 249, item 1 and 2 of the Insurance Code and the methodology for settlement of claims for compensation for damages, caused to motor vehicles, published in State Gazette, issue No. 25, dated 24 March 2006, as amended; Insurance Code, published in State Gazette, Issue No. 103, dated 23 December 2005, as amended.