Ordinance No. 49 of 16.10.2014 on Mandatory Motor Third Party Liability Insurance and Passenger Accident Insurance for Public Transport

ORDINANCE No. 49 of 16.10.2014 on the mandatory insurance under "Motor Third Party Liability" insurance for motorists and "Accident" insurance for passengers in public transport vehicles (Title amended - State Gazette, No. 33 of 2017) Published - State Gazette, No. 90 of 31.10.2014; amended, No. 95 of 08.12.2015; amended and supplemented, No. 33 of 25.04.2017; amended and supplemented, No. 64 of 09.08.2022 Adopted by Decision No. 149-N of 16 October 2014 of the Commission for Financial Supervision

Chapter I General Provisions

Art. 1. (Suppl. - State Gazette, No. 33 of 2017) (1) This Ordinance regulates the conditions and procedures for carrying out the mandatory insurance under "Motor Third Party Liability" insurance for motorists and "Accident" insurance for passengers, for concluding the border "Motor Third Party Liability" insurance for motorists, for issuing the "Green Card" certificate and the procedures for their accounting. (2) This Ordinance regulates the unified standardized numbering for:

1. policies for "Motor Third Party Liability" insurance for motorists;
2. policies for border "Motor Third Party Liability" insurance for motorists;
3. "Green Card" certificates;
4. policies for mandatory "Accident" insurance for passengers. (3) (Suppl. - State Gazette, No. 33 of 2017) This Ordinance introduces a unified methodology for settling claims for compensation of damages caused to motor vehicles. The Council of the Guarantee Fund, upon the proposal of its Management Board, annually by 30 September adopts and submits to the Commission for Financial Supervision an opinion on the need to update the methodology in the first sentence together with specific proposals for amendment and supplementation in accordance with the expressed opinion. (4) This Ordinance regulates the content of the policies for "Motor Third Party Liability" insurance for motorists.

Art. 2. (Suppl. - State Gazette, No. 33 of 2017) Contracts for mandatory "Motor Third Party Liability" insurance for motorists and for mandatory "Accident" insurance for passengers are concluded only under the conditions of the Insurance Code, Ordinance No. 54 of 2016 on the registers of the Guarantee Fund for the exchange and protection of information and for the issuance and accounting of mandatory insurance under Art. 461, items 1 and 2 of the Insurance Code (State Gazette, No. 7 of 2017) and this Ordinance.

Art. 3. (Repealed - State Gazette, No. 33 of 2017).

Chapter II Mandatory "Motor Third Party Liability" Insurance for Motorists

Art. 4. (Amended and suppl. - State Gazette, No. 33 of 2017) (1) (Amended - State Gazette, No. 33 of 2017) The insurance policy for mandatory "Motor Third Party Liability" insurance for motorists contains only the requisites under Art. 345, para. 1, items 7, 9, 10, 11 and para. 4 of the Insurance Code, as well as:

1. the name of the insurer;
2. the seat and management address of the insurer, whereby insurers from a third country carrying out activity through a branch in the Republic of Bulgaria indicate the seat and management address of the insurer in the third country and of the branch in the Republic of Bulgaria;
3. (amended - State Gazette, No. 33 of 2017) the number of the act of the competent authority by which a license for carrying out insurance activity was issued to the insurer, whereby insurers from a third country carrying out activity through a branch in the Republic of Bulgaria indicate the number of the act of the competent authority by the seat of the insurer in the third country and of the Commission for Financial Supervision;
4. EIK for insurers with seat in the Republic of Bulgaria, respectively registration number in a commercial or other similar register for insurers with seat in a member state or in a third country;
5. (amended - State Gazette, No. 33 of 2017) the name and address, respectively the name, seat, management address and EIK, respectively the number by BULSTAT of the insured;
6. (repealed - State Gazette, No. 33 of 2017);
7. (amended - State Gazette, No. 33 of 2017) data on the motor vehicle: category and make of the motor vehicle, registration number and chassis number of the motor vehicle, type of registration - permanent, temporary, transit, validity period of the registration and color of the motor vehicle;
8. the serial number of the insurance policy, formed in accordance with Art. 40, para. 2;
9. (amended - State Gazette, No. 33 of 2017) text with the following content: "Territorial scope of coverage: The territory of the Republic of Bulgaria, as well as of all other states whose national insurance bureau is a member of the "Green Card" system, as well as on the territory of a third country, when damages were caused to persons from a member state, in cases of travel between the territories of two member states and on condition that there is no national insurance bureau responsible for that territory, for the entire duration of the contract, including in any period within this duration, when the motor vehicle is on the territory of any of the specified states.";
10. (suppl. - State Gazette, No. 33 of 2017) text with the following content: "Subject of insurance: According to the Insurance Code, the civil liability of the insured natural and legal persons for property and non-property damages caused to third parties, related to the ownership and/or use of the motor vehicle, for which damages the insured are liable according to Bulgarian legislation or the legislation of the state where the damage occurred.";
11. text with the following content: "Insurance sum (limit of liability): According to the current provisions of the Insurance Code as of the date of occurrence of the insurance event.";
12. (suppl. - State Gazette, No. 33 of 2017) the term of the contract, with start and end, determined to the minute of the corresponding hour, day and year with indication of the insurance period;
13. (new - State Gazette, No. 33 of 2017) period of insurance coverage with start and end, determined to the minute of the corresponding hour, day and year;
14. (previous item 13 - State Gazette, No. 33 of 2017) procedure for settling relations in case of delay in payment or non-payment of the due premium. (2) In cases where the insurance policy covers extended voluntary coverage above the minimum insurance sum under the Insurance Code, the text under para. 1, item 11 is not entered in the policy, but the agreed amount of the insurance sum between the parties is entered in it, with the note that the insurance also provides coverage according to the law in other member states, when it is higher than agreed. (3) (Amended - State Gazette, No. 33 of 2017) When the insurance policy for mandatory "Motor Third Party Liability" insurance for motorists provides coverage under one or more additional voluntary insurance policies, the coverage is issued as an endorsement (additional agreement) or included in the insurance policy for mandatory "Motor Third Party Liability" insurance for motorists in a separate part, so as not to hinder compliance with para. 1. (4) (Repealed - State Gazette, No. 33 of 2017). (5) (Suppl. - State Gazette, No. 33 of 2017) In case of installment payment of the insurance premium, the due date and the exact amount of each installment are recorded in the policy, as well as the consequences of non-payment or inaccurate payment. (6) (New - State Gazette, No. 33 of 2017) The insurer is obliged, while complying with the requirements of the Insurance Code, to provide the insured with a "Green Card" certificate, a sign of the Guarantee Fund under Art. 487, para. 1 of the Insurance Code, and a bilateral accident report under Art. 487, para. 4 of the Insurance Code for each policy of mandatory "Motor Third Party Liability" insurance for motorists. (7) (New - State Gazette, No. 33 of 2017) Regardless of the requirements of para. 6, the insurer is not obliged to issue a "Green Card" certificate to the insurance policy for mandatory "Motor Third Party Liability" insurance for motorists for a tram, respectively a trolleybus, when according to the technical specification of the vehicle it cannot move on its own without being connected to the wires of the electrical network, as well as in cases of an insurance policy under Art. 483, para. 5 of the Insurance Code. (8) (New - State Gazette, No. 33 of 2017) The insurer is obliged to ensure the possibility through its website for every insured person to access a sample of the bilateral accident report under Art. 487, para. 4 of the Insurance Code, which can be downloaded and printed. The website must also have detailed instructions on how to fill out this bilateral accident report.

Art. 5. (Amended - State Gazette, No. 33 of 2017) Insurers may, before concluding mandatory "Motor Third Party Liability" insurance for motorists, provide the insured with a questionnaire under Art. 345, para. 2 of the Insurance Code regarding circumstances relevant to the nature and size of the risk.

Art. 6. (Repealed - State Gazette, No. 33 of 2017).

Art. 7. (Amended and suppl. - State Gazette, No. 33 of 2017; amended and suppl., No. 64 of 2022) (1) (Previous text of Art. 7, amended - State Gazette, No. 33 of 2017; suppl., No. 64 of 2022) In cases of initial registration of a motor vehicle upon acquisition of a new motor vehicle on the territory of the Republic of Bulgaria, a motor vehicle with registration in a member state or in the Swiss Confederation, or a motor vehicle with valid registration outside a member state or Swiss Confederation, or a used motor vehicle without a registration number, including with an expired one, the insurance contract for mandatory "Motor Third Party Liability" insurance for motorists is concluded before the registration of the motor vehicle by the competent bodies of the Ministry of Internal Affairs, with only the chassis number entered in the insurance policy. After receiving the registration certificate and plates with registration number from the competent bodies of the Ministry of Internal Affairs, the insured is obliged to notify them in writing to the insurer within 7 days from receipt. (2) (New - State Gazette, No. 33 of 2017; repealed, No. 64 of 2022).

Art. 8. (Amended and suppl. - State Gazette, No. 33 of 2017) (1) (Repealed - State Gazette, No. 33 of 2017). (2) (Amended - State Gazette, No. 33 of 2017) The policy for mandatory "Motor Third Party Liability" insurance for motorists under Art. 483, para. 5 of the Insurance Code is issued by the insurer only against the registration number of the temporary plates upon presentation by the trader of a certificate from the competent bodies of the Ministry of Internal Affairs, from which the registration number of the set of temporary plates to be provided to the trader is visible. (3) (Amended - State Gazette, No. 33 of 2017) The Guarantee Fund secures the technical possibility for the issuance of insurance policies under para. 2. (4) (New - State Gazette, No. 33 of 2017) An insurer has no right to conclude mandatory "Motor Third Party Liability" insurance for motorists for the same registration number of a temporary plate in the presence of another such, on condition that the validity periods of the two insurances coincide entirely or partially.

Art. 9. (Amended - State Gazette, No. 33 of 2017) The insurance contract under Art. 8, para. 2 is terminated automatically:

1. upon expiration of the validity period of the temporary plates with registration number and the permit for temporary movement;
2. upon destruction, loss, theft or seizure by the competent bodies of the temporary plates with registration number;
3. termination or death of the trader carrying out import and sale of motor vehicles.

Art. 10. (Amended and suppl. - State Gazette, No. 33 of 2017) (1) The insurer supplies the person who has concluded the mandatory insurance with a sign issued by the Guarantee Fund. (2) The sign under para. 1 contains the reserved trademark of the Guarantee Fund, a unique number and the date on which the insurance expires. In case of installment payment of the premium, the sign under para. 1 also certifies the period for which the insurance premium has been paid. (3) The sign under para. 1 is made to be for single use only. The sample and graphic protection of the sign are determined by the Council of the Fund. (4) (Amended - State Gazette, No. 33 of 2017) The Guarantee Fund maintains a register of issued, annulled and invalid signs. The Management Board of the Guarantee Fund issues rules for announcing annulled and invalid signs. (5) (Amended - State Gazette, No. 33 of 2017) In case of loss, theft or destruction of the sign under para. 1, the insurer at the request of the insured or another person who holds the motor vehicle on a legal basis provides a new sign, which is valid until the expiration of the insurance period, respectively the period for which the insurance premium has been paid. Upon providing a new sign, the insurer may request payment of its value, corresponding to the price under para. 8. (6) (Amended - State Gazette, No. 33 of 2017) The Guarantee Fund commissions the printing of the signs under para. 1 to a contractor determined by the Council of the Fund. (7) (Amended - State Gazette, No. 33 of 2017) Every insurer declares in writing to the Guarantee Fund the required number of signs under para. 1. (8) (Amended - State Gazette, No. 33 of 2017) The insurer pays the declared number of signs under para. 1 at the price established in the contract between the Guarantee Fund and the contractor under para. 6. The payment is made to the contractor's account. (9) (Amended - State Gazette, No. 33 of 2017) The insurer receives from the Guarantee Fund the declared number of signs under para. 1 after presenting a document certifying payment under para. 8. The Guarantee Fund refuses to execute a request from an insurer who has not paid for the declared number of signs under para. 1.

Art. 11. (Amended and suppl. - State Gazette, No. 33 of 2017) (1) The sign under Art. 10 is a self-adhesive sticker with three strips, respectively No. 1, No. 2 and No. 3, with the same number and control coupon, as:

1. strip No. 1 is stuck on the front windshield of the motor vehicle from the driver's side, ensuring good visibility;
2. strip No. 2 is stuck on the copy of the insurance policy, which is accounted for and stored with the insurer;
3. strip No. 3 is stuck on the control coupon at the designated place. (2) The driver of the motor vehicle is always obliged to carry the control coupon with them and to provide it together with the insurance policy during inspection by control bodies. (3) (Amended - State Gazette, No. 33 of 2017) A wrongly filled or wrongly perforated sign or a sign with damaged integrity is announced by the insurer in the Information Center of the Guarantee Fund and replaced with a new one. The announcement and replacement are carried out by the insurer. (4) (Effective from 05.05.2015; amended, No. 33 of 2017) The number of a lost or stolen sign is announced as invalid in the Information Center by the insurer who provided it. Insurers daily provide the Guarantee Fund with information on annulled and invalid signs for the previous day. (5) When the motor vehicle technologically does not have a front windshield and it is impossible to stick strip No. 1 of the sign in the place indicated in para. 1, item 1, the same strip is stuck on the insurance policy, which is carried by the driver of the motor vehicle and presented together with the control coupon during inspection.

Art. 12. (Repealed - State Gazette, No. 33 of 2017).

Art. 13. (1) The insurer is obliged to accept and register with an incoming number and date any notification of an insurance event, as well as any claim and to register with an incoming number and date of presentation all documents certifying the basis of the claim and the size of the damage, including the date for appearance to present the motor vehicle for inspection. (2) The presentation of a motor vehicle for inspection and assessment is certified by an inspection report or an appearance report, on which the date of appearance is entered.

Art. 14. (Amended - State Gazette, No. 33 of 2017) Upon notification of the insurer by the insured of a claim filed against them under Art. 430, para. 1, item 4 of the Insurance Code, the notification should contain data on the date, year and number of the case, before which court it was formed and the size of the claim. The insured is obliged to request the involvement of the insurer in the process, when the law allows this.

Art. 15. In cases where the civil liability of the insured is determined by judicial bodies, after the judgment or decision enters into force, the entitled persons are obliged to present to the insurer a certified copy of the effective judicial acts together with the reasons and an execution sheet in original.

Art. 16. (Amended - State Gazette, No. 33 of 2017) Settlements concluded between the insured and the injured persons regarding the size of compensation create an obligation for the insurer only if they are approved by it or if they are concluded with the knowledge and consent of a representative under Art. 430, para. 3 of the Insurance Code. Agreements reached between the parties in criminal cases regarding the size of compensation for civil claims, including court-approved agreements in such cases, are also considered settlements.

Art. 17. (Amended - State Gazette, No. 33 of 2017) When the injured person has not reached majority or is a person placed under interdiction, the insurance compensation is paid by the insurer to a bank account with this person as the holder.

Art. 18. (Repealed - State Gazette, No. 33 of 2017).

Art. 19. (Amended and suppl. - State Gazette, No. 33 of 2017) (1) (Previous text of Art. 19, amended - State Gazette, No. 33 of 2017) The insurance contract for "Motor Third Party Liability" insurance for motorists covers the damages that the insured has caused to third parties, for which the insured is liable according to Bulgarian legislation or the legislation of the state where the damage occurred. (2) (New - State Gazette, No. 33 of 2017) In cases of an insurance event occurring on the territory of the Republic of Bulgaria, in determining the persons entitled to insurance compensation, the person who is liable for the damages caused, as well as the entitled persons as a result of their death, are not considered third parties under Art. 477, para. 1 of the Insurance Code.

Art. 20. (Amended - State Gazette, No. 33 of 2017) (1) (Repealed - State Gazette, No. 33 of 2017). (2) Compensation for damages to motor vehicles is determined by the methodology for settling claims for compensation of damages caused to motor vehicles according to Annexes No. 1 - 6 of Ordinance No. 24 of 2006 on mandatory insurance under Art. 249, items 1 and 2 of the Insurance Code and on the methodology for settling claims for compensation of damages caused to motor vehicles (published, State Gazette, No. 25 of 2006; amended, No. 36 of 2006, No. 55 of 2007, No. 3 of 2008, No. 55 of 2011 and No. 97 of 2013) (3) The insurer also pays the necessary and appropriate expenses for saving the damaged property, including transport expenses, as well as those for loading and unloading activities within the insurance sum.

Art. 21. (Amended - State Gazette, No. 33 of 2017) (1) (Repealed - State Gazette, No. 33 of 2017). (2) (Repealed - State Gazette, No. 33 of 2017). (3) Every insurer is obliged to accept and publicly disclose on its website, as well as in another suitable manner, a detailed methodology for determining the size of the due compensation for non-property and property damages, resulting from bodily injury or death, including the criteria and economic and financial factors for compensating for the damages and lost profits, which represent a direct and immediate result of the injury.

Chapter III Border "Motor Third Party Liability" Insurance for Motorists

Art. 22. (Amended and suppl. - State Gazette, No. 33 of 2017) (1) A person who, upon entering the territory of the Republic of Bulgaria, drives a motor vehicle that usually resides on the territory of a third country and has no insurance covering the liability for property and non-property damages caused to third parties, related to the ownership and/or use of the motor vehicle, valid for the territory of the Republic of Bulgaria, is obliged to conclude "Motor Third Party Liability" insurance for motorists at the border checkpoint (hereinafter referred to as "border insurance"). (2) Border insurance is also obliged to be concluded by a person driving a motor vehicle that usually resides on the territory of a third country, which has entered the territory of the Republic of Bulgaria with valid insurance under para. 1, the term of which expires before the person leaves the territory of the country, unless this insurance has been extended or renewed. (3) (Amended - State Gazette, No. 33 of 2017) Border insurance under para. 1 is concluded in accordance with Art. 34 of the Ordinance on Border Checkpoints, adopted by Council of Ministers Decree No. 104 of 2002 (published, State Gazette, No. 54 of 2002; amended, No. 24 of 2004; amended and suppl., No. 86 of 2004; amended, No. 90 and 96 of 2005, No. 85 of 2006; amended and suppl., No. 106 of 2006, No. 79 of 2008, No. 14 and 100 of 2009, No. 22 and 61 of 2010). Border insurance under para. 2 is concluded without using the services of insurance intermediaries. (4) (Repealed - State Gazette, No. 33 of 2017). (5) (Repealed - State Gazette, No. 33 of 2017).

Art. 23. (Repealed - State Gazette, No. 33 of 2017).

Art. 24. A "Green Card" certificate is issued to the policy for border insurance.

Art. 25. (Amended and suppl. - State Gazette, No. 33 of 2017) (1) (Amended - State Gazette, No. 33 of 2017) To the extent that nothing else is established in this section, the regulation for "Motor Third Party Liability" insurance for motorists according to the Insurance Code applies to border insurance. The premium for border insurance cannot be installment. (2) The National Bureau of Bulgarian Motor Insurers guarantees payments under border insurance according to the conditions of international treaties of which it is a party. (3) (Suppl. - State Gazette, No. 33 of 2017) Insurance contracts for border insurance are mandatory included in the coverage under reinsurance contracts for mandatory "Motor Third Party Liability" insurance for motorists, concluded by insurers. (4) Every insurer accepts a separate tariff for border insurance.

Chapter IV "Green Card" Certificate

Art. 26. (1) The "Green Card" certificate is an international certificate, representing a certification document for the existence of "Motor Third Party Liability" insurance for motorists, issued on behalf of a national bureau of insurers in accordance with Recommendation No. 5, adopted on 25 January 1949 by the Subcommittee of the Committee on Land Transport of the Economic Commission for the United Nations for Europe. (2) The National Bureau of Bulgarian Motor Insurers determines, in compliance with international treaties of which the bureau is a party, and with the acts of the organs of the Council of Bureaus, a unified sample of policies for border "Motor Third Party Liability" insurance for motorists and "Green Card" certificates, as well as organizes, administers and controls their preparation, printing and issuance. (3) The National Bureau of Bulgarian Motor Insurers adopts rules of the National Bureau of Bulgarian Motor Insurers for "Green Card" certificate and border insurance, which are mandatory for all its members.

Art. 27. (Amended - State Gazette, No. 33 of 2017) (1) Members of the National Bureau of Bulgarian Motor Insurers have the right