CIVIL LIABILITY INSURANCE CAMPAIGN GAVE POOR HARVEST
The active period for closing the obligatory Civil Liability car insurance ended by January 31, 2002. This year again local insurance companies were competing in resourcefulness, trying to attract clients.Corporative clients were the major object of wooing, but the public procurement tenders for insuring the car fleets of various organisations were not underrated either. As expected, the pre-estimated results of the 2002 Civil Liability campaign are not satisfactory. About 48% of all car owners had purchased policies for the obligatory insurance by end-January 2001, while the percentage dropped to 38-42% this year. The level is highest for the Sofia city - 60-62%, and the lowest percentage has been registered in the border regions.The Civil Liability campaign was launched on October 16, 2001 by an order of the then Agency for Insurance and Gambling Supervision, setting the minimum size of insurance policies and premiums. The mandatory compensation for property losses was fixed at BGN40,000, and the insurance compensation for non-property damages was raised to BGN60,000-100,000, depending on the number of injured persons, involved in road traffic accidents. Most of the insurance companies offered two voluntary levels above this minimum - BGN60,000-200,000 for property losses, and BGN75,000-500,000 for non-property damages. The minimum insurance premiums for 2002 were hiked by 25% per cent. The discounts for payment of premiums for the voluntary levels varied between 5% and 25 per cent. Some companies offered discounts to shareholders and employees, amountinmg from 10% to 25%, and as a bonus for a purchased obligatory insurance policy they offered 10% discounts for other insurances.Insurance is not an isolated sphere and it should be viewed as an indicator for problems of the society. The shrinkage of the insurance market is caused by the macroeconomic environment in Bulgaria. Due to low solvency, local companies and citizens have adapted their behaviour regarding this type of activity. They purchase only the obligatory and most necessary insurances.The great liabilities of insureres, the relatively small amount of collected premiums, and the high compensations under the Civil Liability insurance, forebode negative consequences for all who are either directly or indirectly concerned with insurance relations.