Page 1

IIF 2013 – Motor insurance-the road towards

profitability

MTPL Moral Claims in Bulgaria

Roumen Galabinov

March 4, 2013, Pera Palace Hotel, Istanbul, Turkey

Page 2

Limits

From 11 June 2012 the minimum insurance sums for each insurance event are:

For non-material damage resulting in from bodily injury or death:

A) 2 000 000 BGN (approx. 1 000 000 EUR) in case of one injured person;

B) 10 000 000 BGN (approx. 5 000 000 EUR) in case of two or more injured persons;

Page 3

Compensations

Monetary compensation is due for non-material damages which are estimated.

Various factors can be taken into consideration. For bodily injury such are the type and extent of bodily injury, period of

medical treatment, period of experiencing pain, age of the victim, temporary and/or permanent disability, incapability to experience the same lifestyle as before the accident, etc.

In case of death only certain categories of persons are entitled to claim for compensation for suffering from the loss of the loved one: spouse, children and parents (including in case of adoption), non-spouse who had permanently lived with the victim in a joint household without marriage. In order to claim for compensation, really close and warm relationship with the deceased must have existed, parental relation is not enough if the parent did not take care of the child.

Page 4

Compensations

Pain and Suffering

Out-of-court settlement: compensation is estimated by an experts’ commission of the Insurer.

Court settlement: compensation is granted according to judge’s concept of what is fair.

Court decisions which are not judged directly against the Insurer are not binding, except for criminal verdicts in terms of fault.

Page 5

Compensations

Nursing and Care Costs

All costs for nursing and care that are proved to be a direct and inevitable consequence of the accident are refundable.

Compensation in Case of Death of the Victim

Non-material compensation: monetary compensation for suffering from the loss is due to spouse, children, parents and non-spouse who had permanently lived with the victim in a joint household without marriage.

Material compensation: funeral expenses, loss of maintenance

Page 6

Compensations

Costs of Medical Treatment

All costs for medicines, medical materials and procedures, extra or special nutrition needs that are proved to be a direct and inevitable consequence of the accident are refundable.

Limitation Period The limitation period is 5 years from the date of the accident.

Page 7

Insurance amount, Average loss amount and Average premium in 10 years period

Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Insurance amount,

BGN

60 000 100 000 200 000 400 000 700 000 700 000 700 000 700 000 1 000 000 1 000 000 2 000 000Per person

More persons

100 000 150 000 240 000 480 000 1 000 000 1 000 000 1 000 000 1 000 000 5 000 000 5 000 000 10 000 000

Average loss

amount, BGN                      

Per person 940 951 964 991 1 090 1 416 1 723 1 757 1 764 1 797 1 898 

More persons 14 368 15 790 18 912 20 600 27 387 31 848 34 548 32 118 28 172 30 674 32 657 

Average Premium,

BGN 88 99 105 131 124 127 144 167 204 213 229 

Page 8

Share of Occurred and Paid Claims in 10 years period

Year after the claim

0 1 2 3 4 5 6 7 8 9 10

Share of occured claims 62.96% 27.45% 5.54% 2.01% 1.03% 0.75% 0.09% 0.04% 0.12% 0.00% 0.00%

Share of paid claims 38.89% 32.51% 13.19% 6.12% 3.66% 2.64% 1.09% 0.74% 0.53% 0.27% 0.36%

Page 9

Average amount of Claims Occurred in 10 years period

Average amount of Moral Claims Occurred, BGN

Year 0 1 2 3 4 5 6 7 8 9 10

2001 9 192 12 193 12 144 12 707 13 147 13 391 13 561 13 664 13 665 13 665 13 651

2002 12 937 12 446 13 649 13 841 13 997 14 491 14 634 14 697 14 714 14 697 14 682

2003 10 006 12 238 12 535 12 793 13 598 13 970 14 038 14 077 14 133 14 123 14 108

2004 13 265 15 648 16 089 17 197 17 756 18 463 18 716 19 066 19 109 19 096 19 076

2005 14 402 15 616 17 441 18 161 18 882 19 724 19 786 19 999 20 045 20 031 20 010

2006 12 976 20 572 23 201 23 826 24 254 25 402 25 612 25 888 25 947 25 929 25 902

2007 15 693 23 923 26 181 26 846 27 319 28 372 28 607 28 915 28 982 28 961 28 931

2008 21 720 25 915 28 041 28 926 29 598 30 738 30 993 31 327 31 399 31 376 31 344

2009 19 120 21 464 22 686 23 320 23 861 24 781 24 986 25 255 25 313 25 295 25 269

2010 13 072 17 901 19 236 19 773 20 232 21 011 21 185 21 413 21 463 21 447 21 425

2011 17 801 22 622 24 308 24 987 25 567 26 552 26 772 27 060 27 122 27 103 27 075

Page 10

Average amount of Claims Paid in 10 years period

Average amount of Moral Claims Paid, BGN

Year 0 1 2 3 4 5 6 7 8 9 10

2001 2 356 6 786 8 303 10 564 11 117 11 449 11 302 12 194 12 535 12 669 13 122

2002 4 038 7 664 9 206 10 497 11 663 12 592 12 852 13 407 13 717 13 872 14 368

2003 4 548 6 461 8 001 8 610 11 256 11 674 12 078 12 595 13 167 13 314 13 790

2004 2 748 6 828 8 800 10 697 12 539 13 750 16 655 17 456 18 058 18 259 18 912

2005 4 012 7 957 11 152 14 038 16 089 17 650 18 118 19 014 19 670 19 889 20 600

2006 4 231 10 175 14 341 18 033 20 859 22 488 24 087 25 278 26 150 26 442 27 387

2007 5 201 11 656 16 194 21 360 24 284 26 150 28 010 29 395 30 409 30 749 31 848

2008 5 876 14 009 18 406 22 765 26 342 28 367 30 384 31 887 32 987 33 355 34 548

2009 5 293 11 644 16 946 21 164 24 490 26 372 28 248 29 645 30 668 31 010 32 118

2010 4 033 10 873 14 864 18 564 21 481 23 132 24 778 26 003 26 900 27 200 28 172

2011 5 118 11 838 16 184 20 212 23 389 25 186 26 978 28 311 29 288 29 615 30 674

Page 11

.

Thank you!