The insurer will adopt and apply rules to adjust the insurance premium under “Civil Liability” based on claims made over a period of time. This is provided for by changes to the Insurance Code introduced by the Council of Ministers to the National Assembly. They are related to the arrangement of the “bonus-malus” system. Or, in practice, it means that drivers who cause more damage in traffic violations will pay higher insurance.
Where certificates of insurance claims are used in adjusting the amount of the insurance premium, the insurer may not treat the insured in a discriminatory manner, nor increase his premium unreasonably because of his nationality or solely on the basis of his previous country of residence.< /p>
An obligation is introduced for insurers to publish their own policies regarding the use of certificates of insurance claims in connection with the determination of insurance premiums under compulsory insurance “Civil Liability“ of motorists and an obligation is introduced for each insurer to adopt its own rules for adjusting insurance premiums (the “bonus-malus“ system), in which it will indicate the way in which it will use the certificates for insurance claims in respect of any person who appears as insurer.
The Commission for Financial Supervision is expected to adopt a regulation in which it will settle uniform requirements regarding the exchange of information between insurers and the electronic register of the Guarantee Fund, enabling the functioning of the “bonus-malus“ system based on the submitted insurance claims, writes more Pariteni.
The changes provide for certificates to be issued centrally by the Guarantee Fund based on the data on insurance claims contained in the electronic register of submitted and paid insurance claims maintained by it. In this way, certificates of insurance claims will reflect the entire history of damage caused by the use of a vehicle, regardless of the insurer with which the driver was insured.
Amendments to the Insurance Code are proposed to reflect the increased amounts of the minimum insurance sums under the mandatory “Civil Liability“ because of the introduction of the euro in Bulgaria. Thus, the wording of the minimum insurance amount will not be in BGN, but in the BGN equivalent of the corresponding amounts in EUR. The specific changes provide for an increase in the minimum sum insured as follows:
1. for non-property and property damages as a result of bodily injury or death - from BGN 10,420,000. for each event, regardless of the number of injured persons, of the BGN equivalent of EUR 6,450,000;
2. for damage to property (things) - from BGN 2,100,000. for each event, regardless of the number of injured persons, of the BGN equivalent of 1,300,000 euros.
Changes are also foreseen when taking out insurance online. The existing requirements in connection with the conclusion of insurance on the Internet limit the offer only through Internet pages. The requirements are outdated and do not reflect the dynamics of the development of e-commerce, which is also carried out through other channels, including and through online platforms. For the stated reasons, it is proposed that the provision regarding the offering of insurance on the Internet be supplemented with a corresponding regulation for the distribution of insurance through online platforms.
In order to facilitate the conclusion of insurance contracts at a distance, it is stipulated that the written form of the contract is considered to be complied with in the event that the insurance contract is concluded through an online platform allowing the identification of the insured and the insurer signs the contract with a qualified electronic signature. With regard to the conclusion of insurance contracts from Section I of Annex 1 of the Insurance Code (life insurance), the identification of the insurer/insured will be carried out with a means of identification with a level of insurance "high".
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When taking out compulsory insurance “Civil liability“ to motorists, the insurer will identify himself and sign with a qualified electronic signature. A proposal has been made to cancel the method specially developed for insurance to conclude insurance by means of a forged signature, when the payment of the premium was made by means of a credit or debit card issued in the name of the insurer.
In order to create greater legal certainty for the insurer, it is proposed to create an obligation for the insurer when concluding a distance contract as an electronic document or via a web page or online platform to immediately provide the insurer with the insurance contract on a durable medium . Taking into account that, in essence, the questions about the conclusion of the insurance contract at a distance represent the regulation of the insurance contract as a legal institute of private law, and not the regulation of the distribution of insurance products, it is proposed to systematize these rules in the part of the Code on the insurance, regulating the insurance contract.
The proposal also provides for an exception from the obligation to insure trailers category O1 (up to 750 kilograms), self-propelled equipment with an engine power of up to 10 kW, bicycles with an engine, individual electric vehicles and self-balancing vehicles.
Their owners will have the right to take out voluntary liability insurance in relation to the excluded vehicles.
It is proposed to change the regulation of liability in case of damage caused by the participation of vehicles in sports and other similar events in places that are limited and marked and not available for public use.
It is proposed to introduce an alternative requirement to conclude a contract for additional liability coverage for the purposes of such events by the owners and users of these vehicles, or to conclude a special insurance or warranty policy by the organizers of such events, which covers the damages to third parties as a result of the use of the vehicles in the events, providing comparable levels of protection with the mandatory "Civil Liability" insurance. An obligation is introduced for event organizers to monitor the fulfillment of these alternative obligations and sanctions are proposed in case of non-fulfilment.