The "bonus-malus" system for the mandatory "Civil Liability" insurance is expected to come into effect in February 2027. This was stated by the Deputy Chairman of the Financial Supervision Commission, Plamen Danailov.
The regulations governing the new model were adopted at the end of August, but technical time is needed for its practical implementation. The amendments were promulgated and entered into force on August 25, 2026.
“The claim that the system will only provide for an increase in price, without discounts,“ is not true,“ said Plamen Danailov.According to him, however, it cannot be expected that “Civil Liability“ will become cheaper for all drivers. The idea is to determine the price more clearly in relation to the actual insurance claims related to the driver's behavior and the accidents caused by him.
Insurers will determine their own rules
Each insurance company will have its own pricing policy and for taking into account the history of claims. Companies will be required to publicly disclose the rules by which they calculate prices, bonuses and possible price increases.
Danailov expects stronger competition for good drivers. Insurers will be able to set their conditions in such a way as to attract customers with a better history of claims. According to the deputy chairman of the FSC, state regulation of prices would be the wrong approach.
The system will use data on the damages caused. The regulations stipulate that the history of insurance claims be tracked for the last five years through the registers of the Guarantee Fund.
Six months to prepare the systems
Before the actual implementation of the “bonus-malus“, the information systems must be adapted. The Guarantee Fund has a three-month period for the necessary changes, after which insurers have another three months to connect their systems to the fund and start using information on the history of damages.
A similar model has been applied for decades in some European Union countries. When determining the conditions there, insurance damages caused for a period of up to 10 years back can be considered.
At the moment, no increase in the price of “Civil Liability“ is expected due to the Guarantee Fund. According to Danailov, the changes to the Insurance Code are aimed at facilitating and accelerating the payment of compensation to victims through the fund, without significantly changing the regime.
Sources: bTV Novinite