Legislative changes will correct the practice of most insurers to require additional payment and issuance of additional documents on "Civil Liability" when traveling abroad. This is clear from a draft amendment to Ordinance 24 on compulsory insurance, which was adopted at first reading by the Financial Supervision Commission on 7 August. Before the final entry into force of the amendments, they must be voted on at second reading.
Bad practices
The supervisors point out that the goal is to eliminate negative practices and better protect the interests of consumers. It is currently common for the insurance company to request information on whether the car will be used only in Bulgaria or will go abroad when concluding the compulsory Civil Liability policy, regardless of whether it is an EU country such as Romania or one outside the Union, for example Turkey. If they declare that they will drive only in the country, car owners will almost always receive a lower premium price. At the same time, the insurance company will inform them that their policy is valid only for Bulgaria, and every time they go abroad they have to get a "Green Card" certificate, which is paid additionally.
One union, one insurance
In the Bulgarian code, the text clearly defines the coverage of the insurance contract in Bulgaria, other EU countries, as well as those outside the community, if their national offices have signed the Multilateral Agreement for one premium. The FSC intends to require that each policy include a description of the territory in which the contract is valid and for what period.
The time for validity of the mandatory policy will also become the same for everyone - at the end of the last day of the contract, ie. 23:59:59 hours. And now in most cases the contracts have exactly such a term, but some insurers, under the supervision of the FSC, set a deadline for the validity of the hour in which the policy is concluded. This means that if you bought insurance at 15.00 on August 20, 2013 and it is for 12 months, its term according to the insurer may be 15.00 on August 20, 2014.
However, there may be problems with last-day civil liability checks or road accidents where compensation has to be paid. According to the supervisor, this rule can enter into force 3 months after the adoption of the changes, so that the insurers' systems can be set up.
Another change will affect the mandatory Accident policies in public transport - insurers will now have to give accident victims a copy of the contract and their general conditions. The supervisors motivated their proposal with a signal from a consumer organization, stating that this way the victims will know if the contract provides for higher coverage and compensation.
Source: capital.bg