Insurers will not be able to surcharge on liability insurance for travel abroad, the Financial Supervision Commission (FSC) has decided.
The regulator amends the Insurance Code due to a long-standing practice of insurers to issue policies for compulsory civil liability insurance, as consumers are misinformed that the insurance has coverage only for the country, the FSC press center said.
This is usually done by including in the policy questions regarding the territory in which the vehicle will be driven. When the consumer indicates only the territory of Bulgaria, he receives a certain discount and he gets the impression that the insurance has no coverage outside the country without the mandatory issuance of an additional certificate "Green Card".
The FSC points out that this is in direct contradiction with the Insurance Code and the European motor insurance directives, which stipulate that for a single premium the contract for the mentioned compulsory insurance should provide coverage for the entire territory of the European Union and in other countries whose national offices are parties to the Multilateral Agreement.
To overcome this practice, the amendment to the ordinance proposes the creation of a provision that provides for the inclusion of explicit details in the insurance policy, which clearly defines the time and spatial framework of insurance coverage in accordance with the requirements of the law. Namely, that the compulsory motor third party liability insurance provides coverage for the entire territory of the European Union, the European Economic Area, as well as for the territory of all other countries that are parties to the multilateral agreement (Andorra, Serbia and Switzerland) on the basis of one premium. The changes in the State Gazette are forthcoming.
Source: profit.bg