CAR INSURANCES - MOST WIDELY-SPREAD
Car insurances contribute to 65.9% of the gross premium income of general insurance companies for Q1 of 2002. This information was revealed by the Insurance Supervision Agency (ISA) early this week. Paid-up compensations on these products amount to 75% of all claims paid. Experts attribute these figures to the fact that part of the car insurances like Civil Responsibility are obligatory. For the Q1 of 2002 general insurance companies have paid compensations amounting to BGN48.4MN compared with BGN46MN for the same period of 2001.ISA also revised its activity for the first six months of its independent existence (the department became an independent structure on January 1, 2002).Among the pointed-out achievements of Roumen Galabinov's team are the preparation of draft project for amendments of the Insurance Act which awaits second reading at the Parliament; the introduction of the agency's internal regulations and the launch of ISA's own website. For half an year ISA has issued 16 permissions and has reviewed 91 applications connected with the insurance companies activity. The department has issued 13 licenses for broker activity.ISA has carried out ten examinations of the activity of brokers and insurers on which basis six acts for administrative violations have been issued. Among most common violations was the sale of products at conditions different from the approved by ISA at the time when license has been issued. Insurers say this is an usual practice with the Casco insurances when clients agree to sign for lower sum than the real amount of the damage if they receive more quickly the money.