The Bonus-Malus system has long been widespread in Europe. The issue of the introduction of this system in Bulgaria has been the subject of controversy and controversy for years.
What exactly is a "Bonus-Malus" system?
The "Bonus-Malus" system is a technique (method) for "discounts and supplements" under certain conditions, which has long been known in various areas of our lives. This term has Latin origins and means "good-bad". This system can be applied in insurance through a discount (bonus) or a premium (malus) to the basic (starting) insurance premium. It was first applied in Great Britain in 1914.
Bulgaria ranks first in the number of people killed in accidents in the European Union. Along with the other preventive measures - changes in the Road Traffic Act, the idea of introducing this system in our country is finally coming to an end.
It is envisaged that from the beginning of 2018, the price of the most popular Third Party Liability insurance will be determined following this world-renowned model, namely the "bonus-malus" system.
Statistics show that after the implementation of the system Belgium registered a reduction in damage by 19%. For Germany, after the introduction of "malus", the reduction in the frequency of damage is 13%, and in France - about 20%.
A consultant has already been hired to develop a methodology for building the system.