Third party liability insurance is possible to go up to 1,000 BGN

Insurers have advocated the introduction of a limit on non-pecuniary damages, allowing relatives and family members to seek compensation after the death of a close person in a traffic accident. They warned that otherwise there would be a threefold increase in the third party liability insurance, as they did not have the necessary reserves of more than 1 billion BGN to cover the claims.

Due to the decision of the Supreme Court of Cassation in July, which extends the circle of people entitled to seek compensation, changes were proposed in the Insurance Code. According to them, a spouse or partner of a deceased person can receive up to 20,000 BGN. Brothers or sisters would receive up to 15,000 BGN.

The introduction of a ceiling triggered a sharp reaction and yesterday the GERB leader Boyko Borissov ordered his party MPs not to vote for the changes until they were subjected to a wide public debate. The public discussion is due on Thursday.

If the limit proposal is rejected, "Third party liability" might reach 1,000 BGN per year, insurers warned.