The FSC has adopted at first reading a draft of a new Regulation concerning compulsory insurance under Article 249, items 1 and 2 of the Insurance Code and the methodology for settling claims for damages caused by motor vehicles. The regulation sets out the terms and procedures for carrying out compulsory insurance under the "Motor Third Party Liability" (MTPL) insurance and the "Accident Insurance for Passengers," for concluding cross-border MTPL insurance, for issuing the Green Card certificate, and the procedures for their reporting. The regulation also defines the content of MTPL insurance policies.
The regulation includes a provision stating:
"Territorial scope of coverage: Based on the paid premium, this insurance covers the liability of insured persons for damages caused on the territory of the Republic of Bulgaria, the other Member States of the European Union, all countries of the European Economic Area, Andorra, Serbia, and Switzerland, as well as in third countries when the damage has been caused to persons from an EU Member State, in cases of travel between the territories of two Member States and provided that there is no national insurance bureau responsible for that territory, for the entire duration of the contract, including any period during which the motor vehicle is located on the territory of any of the aforementioned countries."
The regulation also states that insurers may not in any form negotiate or require an additional premium, surcharge, or other payment in connection with MTPL coverage outside the territory of Bulgaria and within the territories of the countries whose national insurance bureaus are members of the Multilateral Agreement. This includes refunding any discount granted at the time of concluding the insurance contract.
The tariff of each insurer offering compulsory MTPL insurance must clearly indicate that the contracts provide coverage for the territories listed under Article 4, paragraph 1, item 9, for the entire term of the contract, including any period during which the vehicle is located on the territory of any of these countries.
The draft regulation has been published on the FSC's website for public consultation within a 15-day period.