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Publications

In the driving schools there should be more practical hours and the polygon should be returned

An interview with Mr. Georgi Vulkov, Chairman for the show "Under the magnifying glass" of TV "Europe".

Read more: In the driving schools there should be more practical hours and the polygon should be returned

   

The insurance companies force to sign agreements

Interview with Attorney-at-law Georgi Vulkov, chairman Association in defence of insured and injured in RTAa

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Proposals for amendments in the Insurance code

To the kind attention of:
Chairman of the Economic commission in the National Assembly in Bulgaria

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Association in defence of insured and injured in RTAs’ statement according to the MTPL

Dear colleagues,
According to the adoption of the new Insurance Code we were asked to give opinion regarding the current insurance market’s issues.

Read more: Association in defence of insured and injured in RTAs’ statement according to the MTPL

   

Association in defence of insured and injured in RTAs’ statement according to the Rules for the structure and operation of the Guarantee fund

To the Financial Supervision Commission
To the kind attention of:
Mrs. Ralitsa Again – Guri
Vice-chairman
Insurance market regulation division

Dear Mrs. Again-Guri


We would like to present you our statement according to the draft Rules for the structure and operation of the Guarantee fund.

1.    In the draft art.25, par.2 The Fund will not compensate for property damages less than 500 BGN. In my opinion this will bring inequality the Fund and other insurance market players. It is not possible the insurance companies and the guilty driver to be responsible and Guarantee fund to not be. The Guarantee fund should compensate the whole damage.

2.    Article 25 Paragraph 3 lists the injuries that are significant and that the Fund shall pay compensation for. In item 5 is entered criterion according to which there is no substantial bodily disabilities and for which no compensation is due to the following injuries - fractures of fingers and break bones without breaking. Again we clearly diverging practice of insurers and the practice of the Fund, as it has an opportunity to avoid the obligation of paying compensations in most mild cases of disability.

It should be borne in mind that the fracture of bones in our legislation is average injury and there is no distinction of those which are less important than others. The causers of the injuries should have appropriate criminal liability. In this regard, it would be wrong not to incur the responsibility of the Fund provided that the direct causer responsible for such damage. In our opinion, the Fund will start paying selectively for some disabilities, but not for others. A purpose for which it was created is precisely to cover such damages, and then to seek recourse amount paid by the direct causer.

In practice, according to the text if the crash’s victim’s fingers bones will be broken and he remains invalid, the Fund for the reasons listed above, will not pay compensation. It remains unexplained why the Guarantee Fund will not pay benefits in case of the insurance company would pay if there is a valid „civil liability „insurance. Moreover this is case in which the compensations for damages are significant. Actually affected by this new legislation would be the victims of accidents whose rights will be violated and drastically limited.

3.     No less disturbing is the next item 6. The significant personal injuries are those which treatment is not less than 14 days. Here the main question is what are these injuries, because a very few of them are those which require stays longer than two weeks. Experience shows that even with very severe injuries, hospital stay is no more than 7 to 10 days. Then the question is whether this criterion corresponds to the practice and what will be their disabilities. The scenarios are many and we believe that the duration of hospital stay should be eliminated or reduced at least by a half.

4.    Art. 27 par. 4 is also not very well precised. It is not clear in what currency will be determined the compensations. In sentence one is mentioned that “the Compensation shall be determined and paid in the currency in which the claim has been laid, except in the cases where investments in said currency are regulated or the currency is subject to transfer restrictions or for other reasons it is inappropriate to invest funds of the Fund.” This sentence is confusing because it isn’t gives a clear criterion in which currency the compensation will be paid.  In first side it permitted in each currency, but then introduces a subjective judgment as to whether the investment in the currency is regulated, or currency is subject to transfer restrictions, or inappropriate investment of the fund. The lack of clear rules can cause a wrong interpretation of the text, especially in the last part - who will determine if the currency is not suitable for investment?

5.     In art.28 par.3 the text indicates that the Fund provides a reasoned opinion when compensation is less than claimed, or where the evidence was not sufficient to establish the grounds or the amount of compensation. The question here is what will happen if the three-month period under Art. 28 par. 6 the fund decide that does not have sufficient evidence to establish the grounds and the amount of compensation. The problem will arise at this moment, as the injured person, according to the and Article 29 of the Rules is not entitled to bring a claim in court before the end of the procedure to the Fund. This will bring a vicious circle in which the insured and injured will became victims. On one hand, the Fund will have no interest to collect all the necessary evidence to which will have access through official channels, on the other hand the injured will not be able to protect its interest because of a  limited right to claim. The Restriction of the victim’s right to claim although it’s legally covered in the Insurance Code will put the Guarantee Fund in privileged position with regard to other participants in the insurance market.

We hope the Financial Supervision Commission to consider the circumstances which are referred to in this statement. We would also like before the adoption of a final version of the Rules of Organization and Operation of the Guarantee Fund, the above mentioned texts to be changed in a way that will protect the interests of the insured.
As a NGO in protection the rights and interests of the insured, we are ready to participate in future discussions regarding the regulation and development of the insurance market.

Sincerely,
Georgi Vulkov
Chairman
Association in defence of insured and injured in RTAS

Read more: Association in defence of insured and injured in RTAs’ statement according to the Rules for the structure and operation of the Guarantee fund

   

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