Every Second Motorist in Bulgaria Does Not Pay for 'Civil Liability' Insurance

The Bulgarian Insurers Association (BIA) issued a statement regarding the rising prices of the mandatory 'Civil Liability' insurance and the problems arising from it. In the message, the BIA states that over half of motorcycle policies in the last five years have been prematurely terminated due to unpaid premiums.

The organization also notes that a high percentage of uninsured motor vehicles continue to participate in traffic, with damages covered by the Guarantee Fund. Since 2020, the fund has paid nearly 2 million euros in damages caused by uninsured motorcycles.

Motorists from all over the country will go out to a national protest on May 15, with various cities blocking main roads and highways for one hour between 6 pm and 7 pm. In Plovdiv, the ring road section between the intersections of Asenovgrad Road and Pazardzhishko Road will be closed.

According to representatives of the insurers, the increase in premiums is not the result of administrative decisions but is driven by the rise in damages, actual risk, and regulatory requirements in the EU. They point out that international carriers are exposed to a higher risk since they spend more time on the move within the EU territory, and compensation for incidents abroad is often higher.

The BIA emphasizes that prices are formed in accordance with European regulatory requirements, including the motor insurance directive, which limits the possibilities for administrative interference. They warn that freezing prices could contradict the regulatory framework and threaten the stability of the sector.

In their statement, the association also highlights the high share of policies terminated due to unpaid premiums, emphasizing that this is a serious issue contributing to the participation of uninsured motor vehicles in traffic, with subsequent payments through the Guarantee Fund. Checks by the Financial Supervision Commission will analyze how the 'Civil Liability' prices are formed.

According to the BIA, the main public mission of the mandatory insurance is to protect victims of road traffic accidents and ensure financial stability of the system. They believe sustainable solutions will be achieved through dialogue, improving road safety, and effective risk management.

Source: Plovdiv24.bg