The government approved important changes in motor vehicle insurance
Changes to the Insurance Code were adopted by a decision of the Council of Ministers at the end of November 2024.They will bring significant changes to the way cars are insured in Bulgaria.The purpose of isto harmonize Bulgarian legislation with European requirementsand improve consumer protection.
What's new?
With these changes, the requirements of Directive (EU) 2021/2118 amending Directive 2009/1ОЗ/EC concerning civil liability insurance for the use of motor vehicles and for control over the obligation to take out such insurance are introduced into national legislation. Among the innovations are clarified definitions of "vehicle" and "use of vehicle".The range of vehicles is expanding, which must be insured and are exempted from compulsory insurance for certain categories, such as light trailers (category 01 (up to 750 kilograms), self-propelled machinery with an engine power of up to 10 kW, motorized bicycles, electric bicycles and self-balancing devices.
The centralized issuance of certificates for insurance claims will be carried out through the Guarantee Fund, based on the data on insurance claims contained in the electronic register maintained by it.In this way, the entire history of damage caused when using the vehicle is reflected, regardless of the insurer with which the driver was insured.This will allow a more accurate determination of risk profiles and, accordingly, the amount of insurance premiums.In this regard, a change is proposed in the current national regulation of the adjustment of the insurance premium under mandatory "Civil Liability" insurance of motorists depending on the claims made ("bonus-malus" system).The minimum insurance sums under the mandatory insurance are updated"Civil liability" of motorists.
GO Insurance Mechanism
A mechanism for compensation of injured persons in the event of insolvency of an insurer under compulsory insurance is being created, harmonized at the European Union level.This mechanism covers motorists' liability ...
The government approved important changes in motor vehicle insurance
Changes to the Insurance Code were adopted by a decision of the Council of Ministers at the end of November 2024.They will bring significant changes to the way cars are insured in Bulgaria.The purpose of isto harmonize Bulgarian legislation with European requirementsand improve consumer protection.
What's new?
With these changes, the requirements of Directive (EU) 2021/2118 amending Directive 2009/1ОЗ/EC concerning civil liability insurance for the use of motor vehicles and for control over the obligation to take out such insurance are introduced into national legislation. Among the innovations are clarified definitions of "vehicle" and "use of vehicle".The range of vehicles is expanding, which must be insured and are exempted from compulsory insurance for certain categories, such as light trailers (category 01 (up to 750 kilograms), self-propelled machinery with an engine power of up to 10 kW, motorized bicycles, electric bicycles and self-balancing devices.
The centralized issuance of certificates for insurance claims will be carried out through the Guarantee Fund, based on the data on insurance claims contained in the electronic register maintained by it.In this way, the entire history of damage caused when using the vehicle is reflected, regardless of the insurer with which the driver was insured.This will allow a more accurate determination of risk profiles and, accordingly, the amount of insurance premiums.In this regard, a change is proposed in the current national regulation of the adjustment of the insurance premium under mandatory "Civil Liability" insurance of motorists depending on the claims made ("bonus-malus" system).The minimum insurance sums under the mandatory insurance are updated"Civil liability" of motorists.
GO Insurance Mechanism
A mechanism for compensation of injured persons in the event of insolvency of an insurer under compulsory insurance is being created, harmonized at the European Union level.This mechanism covers motorists' liability insurance in their country of residence through a pan-European guarantee mechanism.The mechanism involves the authorized compensation authorities in all member states of the European Union in order to ensure the protection of victims.The guarantee fund in Bulgaria is designated to fulfill the role of such a compensation body under this European mechanism.It is planned that the contributions to the Provident Fund under the mandatory "Civil Liability" insurance will be calculated in a new way.Instead of the previous fixed amount, the premiums will now be determined as a percentage of the insurance premium charged for each policy.
The bill includes amendments to the Law on the Financial Supervision Commission.They are related to registration of vocational training organizations ofinsurance brokers, the payment of fees for their entry and the implementation of general financial supervision over them.
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The government approved important changes in motor vehicle insurance
Changes to the Insurance Code were adopted by a decision of the Council of Ministers at the end of November 2024.They will bring significant changes to the way cars are insured in Bulgaria.The purpose of isto harmonize Bulgarian legislation with European requirementsand improve consumer protection.
What's new?
With these changes, the requirements of Directive (EU) 2021/2118 amending Directive 2009/1ОЗ/EC concerning civil liability insurance for the use of motor vehicles and for control over the obligation to take out such insurance are introduced into national legislation. Among the innovations are clarified definitions of "vehicle" and "use of vehicle".The range of vehicles is expanding, which must be insured and are exempted from compulsory insurance for certain categories, such as light trailers (category 01 (up to 750 kilograms), self-propelled machinery with an engine power of up to 10 kW, motorized bicycles, electric bicycles and self-balancing devices.
The centralized issuance of certificates for insurance claims will be carried out through the Guarantee Fund, based on the data on insurance claims contained in the electronic register maintained by it.In this way, the entire history of damage caused when using the vehicle is reflected, regardless of the insurer with which the driver was insured.This will allow a more accurate determination of risk profiles and, accordingly, the amount of insurance premiums.In this regard, a change is proposed in the current national regulation of the adjustment of the insurance premium under mandatory "Civil Liability" insurance of motorists depending on the claims made ("bonus-malus" system).The minimum insurance sums under the mandatory insurance are updated"Civil liability" of motorists.
GO Insurance Mechanism
A mechanism for compensation of injured persons in the event of insolvency of an insurer under compulsory insurance is being created, harmonized at the European Union level.This mechanism covers motorists' liability ...
The government approved important changes in motor vehicle insurance
Changes to the Insurance Code were adopted by a decision of the Council of Ministers at the end of November 2024.They will bring significant changes to the way cars are insured in Bulgaria.The purpose of isto harmonize Bulgarian legislation with European requirementsand improve consumer protection.
What's new?
With these changes, the requirements of Directive (EU) 2021/2118 amending Directive 2009/1ОЗ/EC concerning civil liability insurance for the use of motor vehicles and for control over the obligation to take out such insurance are introduced into national legislation. Among the innovations are clarified definitions of "vehicle" and "use of vehicle".The range of vehicles is expanding, which must be insured and are exempted from compulsory insurance for certain categories, such as light trailers (category 01 (up to 750 kilograms), self-propelled machinery with an engine power of up to 10 kW, motorized bicycles, electric bicycles and self-balancing devices.
The centralized issuance of certificates for insurance claims will be carried out through the Guarantee Fund, based on the data on insurance claims contained in the electronic register maintained by it.In this way, the entire history of damage caused when using the vehicle is reflected, regardless of the insurer with which the driver was insured.This will allow a more accurate determination of risk profiles and, accordingly, the amount of insurance premiums.In this regard, a change is proposed in the current national regulation of the adjustment of the insurance premium under mandatory "Civil Liability" insurance of motorists depending on the claims made ("bonus-malus" system).The minimum insurance sums under the mandatory insurance are updated"Civil liability" of motorists.
GO Insurance Mechanism
A mechanism for compensation of injured persons in the event of insolvency of an insurer under compulsory insurance is being created, harmonized at the European Union level.This mechanism covers motorists' liability insurance in their country of residence through a pan-European guarantee mechanism.The mechanism involves the authorized compensation authorities in all member states of the European Union in order to ensure the protection of victims.The guarantee fund in Bulgaria is designated to fulfill the role of such a compensation body under this European mechanism.It is planned that the contributions to the Provident Fund under the mandatory "Civil Liability" insurance will be calculated in a new way.Instead of the previous fixed amount, the premiums will now be determined as a percentage of the insurance premium charged for each policy.
The bill includes amendments to the Law on the Financial Supervision Commission.They are related to registration of vocational training organizations ofinsurance brokers, the payment of fees for their entry and the implementation of general financial supervision over them.