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The Civil Liability policy with a margin of up to 500% in some parts of the country

The Civil Liability policy with a margin of up to 500% in some parts of the country

Last change: 01.10.2013
Topic: Motor Insurance

In some parts of the country, mainly in Northern Bulgaria, the compulsory Civil Liability insurance policy for the automobiles comes with an increased price between 200 and 500% of the base fare. This was revealed by the Financial Supervision Commission (FSC) and announced by "Focus" news agency.

Such a high-price Civil Liability insurance policy is offered in the cities along the Danube River – in the cities of Vidin, Ruse, Silistra, as well as in the cities of Montana, Vratsa, Razgrad and Dobrich. The Financial Supervision Commission indicates that such a high price of the insurance policy is applied to persons who own more than four registered vehicles, or in the case of providing the vehicle for usage by foreign citizens outside the country.

"There is a practice of foreign citizens, mostly from Romania, to drive cars with Bulgarian registration in other Member States of the European Union. There are Bulgarian citizens who have registered under their namer many vehicles and offer them to foreign nationals with management mandate", this is how the committee explains the high price of the insurance policies there.

The committee warns that these practices are a source of increased risk and therefore in these cases the insurance companies tend to increase the premiums. However, the insurance companies in Bulgaria are not limited by the law in determining the final cost of insurance "Civil Liability" of drivers. These companies have the obligation to notify the Financial Supervision Commission for the change in their prices in order that they can be updated on the website of the Finance Committee. The Financial Supervision Commission has the right to intervene in the price of the "Civil Liability" policy only in cases of failure of the premium and in case of violation of prohibitions such as - premium differentiation by gender.

Source: www.insurance.bg

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