Motor insurance includes several lines of insurance, which depending on the subject of insurance might by mandatory and voluntary. The following basic motor insurance lines are offered on the Bulgarian insurance market:
Motor Third Party Liability Insurance is a mandatory cover pursuant to the Insurance Code of the Republic of Bulgaria. Every owner of a motor vehicle, which is registered on the territory of the Republic of Bulgaria is obliged to take out compulsory MTPL insurance. The insurance covers the liability of the insured natural and legal persons for property and non-property damages caused by the owned by them vehicle to third parties. The applicable law is the law of the country where the accident occurs. The insurance contract for the compulsory MTPL covers the liability of the insured person for damages caused on the territory of:
- Republic of Bulgaria;
- a country whose national insurers’ bureau is a member of the Green Card agreement.
Pursuant the Insurance, Code the MTPL Insurer shall issue a Green Card certificate without additional fee or other payment as an international proof of cover.
According to the Insurance Code the mandatory Limited of Insurance in force as of 07/12/2018 are as follows:
- For non-pecuniary and pecuniary damages as a result of: bodily injury or death: BGN 10,420,000 per event, regardless of the number of injured persons;
- For property damage: BGN 2,100,000 per event, regardless of the number damaged assets.
The main factors determining the MTPL premium are:
- Type and technical characteristics of the motor vehicle – engine cubic capacity, total weight or loading capacity, number of seats, year of manufacture, type of fuel;
- Age and driving experience of the owner / usual driver;
- Registration address and management area.
In case of an accident without injured persons, the parties may fill in an Accident Report, on the basis of which they may claim compensation.
Motor hull insurance is intended for individuals or legal entities, owners of motor vehicles, trailers and semi-trailers. In case the vehicle is used under a contract for rent, leasing, safekeeping, etc., the user can insure the vehicle on behalf of the owner, i.e. the Named Insured under the insurance contract will be the owner of the vehicle. The insurance covers full loss or partial damage as a result of realizing the following risks:
- road accident from collision or impact of vehicles or immovable objects (including in the parked state of the vehicle), impact from animals or other obstacles on the roadway (earth or rock masses), falling trees and branches (not as a result of natural disasters), falling objects from buildings and flying bodies;
- fire and explosion of the vehicle during operation or stay as a result of an accidental event;
- natural perils – storm, hurricane, hail, thunder and lightning, torrential rain, flood, impact of vehicles swept away by storm or hurricane, falling trees and branches due to natural perils, action of sea waves, landslides or landslip , accumulation of snow or ice;
- opening a door or lid while driving;
- malicious acts of third parties – breaking, drilling, scraping, scratching, flooding with paints or chemicals;
- burglary of the entire vehicle;
- robbery of the entire vehicle;
- damage caused by theft or attempted burglary;
- burglary of stationary equipment;
- arson or detonation caused by third parties.
The territorial scope of the insurance is the Republic of Bulgaria, but it can be extended to cover other countries.
Damages caused by or as a result of:
- driving a vehicle by an incompetent driver;
- intentional actions of the insured, a member of his family, his employee, a third person using the motor vehicle, the driver of the motor vehicle, the persons transported by motor vehicle, whose actions have caused an insured event;
- a traffic accident (accident) caused by a driver who at the time of the event was trying to avoid criminal liability;
- non-compliance with the technical and technological rules for operation of vehicles established by the manufacturer, as well as the rules for fire safety;
- carriage of flammable, explosive, corrosive or flammable materials or substances. The application of this exemption shall not take into account fuels, oils and other similar products transported in vehicles intended for this type of cargo, as well as fuels and oils necessary for the operation of the vehicle;
- damage to vehicles as a result of a faulty or failed technical inspection of gas or methane system;
- use of motor vehicles for competitions, trainings, tests, or other similar actions, illegally organized competitions, games and stunts, for fees and the like, unless an additional insurance premium has been paid for this;
- damage to individual parts and components of the vehicle as a result of a proven technical malfunction; damage due to corrosion, wear, abrasion, etc. In the event of an accident as a result of these cases, the subsequent damages are paid, except for the part or unit that caused the event;
- gross negligence on the part of the insured or persons authorized by him;
- damage or destruction of the tires if it is not as a result of a covered insurance event.
This insurance covers the health, life and physical integrity of the passengers and the driver. It applies while the motor vehicle is in movement as well as the moment of embarkation to-from the vehicle. The insurance guarantees to the owner of the car that there will be compensation for the passengers in this car in case some of them suffer non-pecuniary damage. This insurance has two types – one is mandatory when the vehicle is used for public transport, the other is voluntary – when the vehicle is used for personal or business purposes.
This insurance is places as an extension to motor hull insurance. The insurance provides cover up to certain limit. The coverage could be extended to the territory of Europe and significantly expands the benefits and services related to possible traffic accidents.