New Appreciation of the Third Party Liability Insurance

Insurance companies have warned that another price increase for mandatory Third Party Liability insurance lies just round the corner, wrote newspaper “Now”. Last year the insurance jumped more than 50% and its average value is now between 250 and 300 leva depending on the settlement. The increase is likely to continue in the coming months as well.

One of the reasons for the new appreciation is the measures that insurers have to take after in the end of 2018 Bulgaria has been monitored under the Green Card system due to the systematic non-payment by some companies for accidents damages with Bulgarian’s cars abroad.

The Bulgarian Green Card Bureau was penalized to lodge a guarantee and to enter into a reinsurance contract for the whole market. The guarantee is 5 million euros, the Association of Bulgarian Insurers announced on Wednesday. Henceforth, they refuse to indicate the value of the reinsurance contract, which conclusion was on the final line. The additional costs that companies have to make for this reinsurance will inevitably raise the cost of the policy.

In the beginning of 2018, when the International Green Card Bureau asked the Bulgarian insurers for an extraordinary guarantee deposit of 4 million euros, the Third Party Liability insurance increased by an average of 12 leva.

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