"Costly" times are coming for Bulgarian drivers

Bulgarian insurance market" authority - FSC recently published a draft ordinance regarding the MTPL tariffs for MTPL policies, wrote local media.

"According to the new ordinance, the premiums for compulsory motor third party liability (MTPL) insurance will be four times higher than the basic premiums for Bulgarian drivers with biggest number of road violations", wrote Radio Bulgaria.

Known as "bonus-malus", this system aims to reduce the high number of road traffic accidents and road traffic violations. The number of road deaths in 2016 and 2017 amounted to 717., while a total of 9,554 people were injured in road accidents in the mentioned period. At the same time, the number of road traffic violations in 2016 and 2017 amounted to 634,123.

On the other hand, in the near future the MTPL tariff could be significantly influenced by the non-pecuniary damages.

Recently, local insurers said that is more than necessary the introduction of a limit on non-pecuniary damages, allowing relatives and family members to seek compensation after the death of a close person in a traffic accident.

"They warned that otherwise there would be a threefold increase in the third-party liability insurance, as they did not have the necessary reserves of more than 1 billion BGN to cover the claims", reports BNT quoted by Novinite.

Due to the decision of the Supreme Court of Cassation in July, which extends the circle of people entitled to seek compensation, "changes were proposed in the Insurance Code. According to them, a spouse or partner of a deceased person can receive up to 20,000 BGN. Brothers or sisters would receive up to 15,000 BGN".

If the limit proposal is rejected, "Third party liability" might reach 1,000 BGN per year, Bulgarian insurers warned.





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