Банкеръ Weekly

Briefs

CENTRAL BANK BUILDINGS ATTRACT INSURANCE COMPANIES

The buildings owned by the Bulgarian National Bank (BNB) are insured by DZI - General Insurance for a BGN21,110 premium, Velizar Stoilov, BNB chief secretary, told the BANKER weekly. The insurance covers 20 buildings, including the head-office of the bank, the building of the Supervision Department, branch offices throughout the country, holiday stations, etc. The total value of BNB's buildings amounts to BGN82MN. The central bank signed the agreement with DZI on April 15, 2003.Until six years ago, the central treasury used to pay a BGN200,000 annual premium. Because of the low risk, however, the insurance price went down. The bank has its own security guards and for that reason there haven't been insurance events and compensation claims in the past six years. The only real risk that this property faces comes from possible earthquakes, Velizar Stoilov said. This insurance is like a dream for the companies due to the low level of damages, because the premium remains an income for them and they make no expenses.That's not the case with the insurance of vehicles and central bank personnel. All 900 officers of the central bank are insured by DZI. For their life and accident insurances BNB has paid a BGN11,900 premium, according to the January 28, 2003 agreement. However, in 2002 the insurance company (DZI) reported a loss, because it paid over BGN15,000 on compensation claims.The vehicles owned by BNB are insured by Bulstrad insurance and reinsurance joint-stock company. In order to attract the customer, Bulstrad offered a 10% discount of the ordinary insurance premium for the personal cars owned by BNB officers. Usually, this kind of insurance is not profitable for the companies, because damages and compensation claims are not a rare event. Still, it seems a matter of prestige, at least considering the interest demonstrated by insurance companies.

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