DOUBLE COMPENSATION FOR HARMED PASSENGERS
The lowest insurance amount on the restored Accident insurance payable to passengers in public transport vehicles will increase from BGN5,000 to BGN10,000 for every event and every passenger. The increase will become valid if the government approves the amendments offered by the Insurance Supervision Association (ISA) to the Regulation on Obligatory Insurance. The amendments are to be discussed on the next meeting of the cabinet on October 31. Another topic of the agenda will be the limits on Civil Responsibility insurance. Insurance amounts due for non-property damages will increase by 50% and those payable for property damages will grow by 75 per cent. The next step towards establishing the new regulation will be made by the ISA director, who will fix the premiums corresponding to the new lowest insurance amounts confirmed by the ministers. The average price increase of Civil Responsibility premiums for different types of vehicles is 13.3%, while the premiums for public transportation accidents will not be increased.The Accident obligatory insurance was restored by the amendments to the Law on Insurance adopted on September 15. Compensations for any accidents that happen in public transportat vehicles will be paid regardless of the fact who has caused them, provided that the passenger possesses a ticket or a card. Compensations are paid for any event (which takes place on the territory of Bulgaria) that is not provoked by the passenger. Insurance is provided for all the cases in which passengers are harmed, no matter if they have been in the vehicle or next to it. Until now, in case of a transport accident all proper passengers were compensated for the damages suffered if only the driver of the public vehicle was proven guilty.Although the limit on the new insurance is doubled, no changes will be made to the amount of the premiums. They will remain the same as those collected by insurance companies so far on the previous Civil Responsibility. ISA experts took this decision after analysing the data presented by insurers for the period 1999 - end-2001. The amended texts of the law fix higher fines for people who have failed to pay their insurance within the deadlines. Individuals will be sanctioned to pay from BGN100 to BGN500, while companies (including the drivers of public transport vehicles) - from BGN500 to BGN5,000. 33 claims on Drivers' Civil Responsibility insurance have been laid in the first half of the current year. The compensations paid to passengers in the public transportat amount to BGN64,671. In 2001, when the Accident insurance of passengers in the public transportat was obligatory, 68 claims were filed for the whole year. The amounts paid on the restored insurance are expected to become higher because of the increased limits of responsibility.