Insurers to Lose BGN 10 M from Western Bulgaria Earthquake

Finance | June 11, 2012, Monday // 18:16|  views

Bulgaria's Pernik suffered the greatest damages - though still minor ones - from the May 22 earthquake. Photo by BGNES

Insurance companies will be pay about BGN 10 M in order to compensate owners for the damages caused in Western Bulgaria by the May 22 earthquake, the Association of Bulgarian Insurers announced.

The May 22 earthquake had a magnitude of 5.8-6.0 on the Richter Scale, and caused damages in Sofia, Pernik, and Radomir in Western Bulgaria.

Only 10 of a total of 20 insurance companies have provided the Association with data stating that they have registered a total of 3 100 instances of damages worth BGN 5 M, explained the NGO's chair Dancho Danchev, as cited by Darik Radio.

"We can thus calculate the total damages by doubling this sum since the companies in Bulgaria that offer general insurance are 20. The damages refer to buildings in Sofia and Pernik but especially in Pernik," he said.

The organization believes that a decision on whether to make disaster insurance obligatory in Bulgaria must be taken only after a wide-ranging public discussion. The NGO has instead suggested creating an insurance pool to tackle the effects of disasters such as earthquakes and fires.

The Association criticized the Bulgarian government for failing to insure some of its buildings, or for failing to provide policies for highways, bridges, and tunnels, as well as other infrastructure items.

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Tags: insurance, insurance company, insurers, Pernik, sofia, Earthquake, earthquakes, Dancho Danchev, Association of Bulgarian Insurers

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