Insurers: The share of insured residential and agricultural properties in our country is below 10%.

Home Insurance

In Bulgaria, there is a clearly defined problem with the low level of utilization of insurance mechanisms to cover losses from natural and other disasters. According to data from the European Insurance and Occupational Pensions Authority (EIOPA), the share of insured properties for all natural disasters in Bulgaria has been only 2% over the past 40 years, compared to an average of 22% in Europe—ten times higher. This comparison was made by Konstantin Velev, Chairman of the Management Board of the Association of Bulgarian Insurers (ABI), at an event organized by the association. The ABI is conducting an informational campaign, *”Home Insurance: Protect Your World,”* aimed at educating consumers on how to choose the right policy for their needs.

Velev pointed out that Bulgaria is highly exposed to natural hazards, making disaster resilience a national priority. Floods, earthquakes, and hailstorms have been identified as particularly high-risk events. Between 2010 and 2019, disaster-related damages in Bulgaria amounted to $1.1 billion, equivalent to approximately 0.2% of the country’s gross domestic product for the period 2011-2019, according to data from the National Statistical Institute (NSI).

Losses

“The practical consequence of this situation is that the cost of recovery from adverse events is borne by the state budget, businesses, and households, instead of transferring the risk to insurers,” commented Konstantin Velev. He emphasized that both in terms of premium income and paid compensations in Bulgaria, there is a strong dominance of motor insurance, primarily due to mandatory insurance, while other lines of business receive minimal coverage.

Bulgaria had the lowest share of property insurance in the entire EU in 2020—14% compared to the European average of 37%.

Source: Investor.bg

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Object and Subject of the Insurance:

This insurance is a variant of classic life insurance, where insurance payments are fully or partially dependent on the value of shares and units issued by investment companies and mutual funds operating under the laws of public offering of securities, as well as shares and units of collective investment schemes, or the value of assets included in the internal funds of the insurer.

The insured person selects their investment strategy. The investment strategy involves the specific groups of investment funds chosen by the insured person in which their insurance premiums will be invested, and the percentage allocation for investment in each specific fund group.

Covered Risks:

Death during the insurance period – insurance sum + additional interest at the time of death.
Permanent loss of work capacity due to an insurance accident from 30%-50% – percentage of the insurance sum equal to the percentage of lost work capacity.
Permanent loss of work capacity due to an insurance accident above 50% – the insured is exempt from further premium payments, while the full insurance sum remains valid.
Survival – insurance sum plus accumulated additional income over the period.

Additional Coverage:

Exemption from premiums in case of permanent incapacity over 50% due to an accident.
Inflation protection.

Insurance Sum:

Agreed upon when concluding the contract.

Currency:

Bulgarian Lev, Euro, or US Dollars.

Contract Duration:

From 5 to 25/30 years.

Insurance Premium:

One-time payment
In installments (every 1, 3, 6, or 12 months)

Tax Benefits:

For the client: Up to 10% of the taxable income of individuals.
For the employer: According to the Corporate Income Tax Act.

Documents and Forms Required When Concluding the Insurance Contract:

Application for life insurance and a health declaration.
Financial questionnaire (usually for policies with a value above 40,000 BGN or 20,000 USD/EUR).
Medical examinations – for certain insurance sums.
Declaration of the origin of funds – for amounts exceeding 30,000 BGN total insurance premiums due over the contract duration.
Insurance policy.

Early Termination of the Insurance Contract:

The policyholder has the right to prematurely terminate the insurance contract and receive the surrender value of the insurance, provided that the insurance is eligible for surrender.

The insurer has the right to terminate the contract in accordance with the General Terms and Conditions.

Object and Subject of the Insurance:

The subject of the insurance is the life and health of one of the child’s parents or a direct relative—grandmother or grandfather. The beneficiary is the child.

For individuals under 18 years of age. The insurance matures when the child reaches 18 years old.

Insured individuals: ages 14 to 65, not more than 70 years at the expiration of the insurance term.

Covered Risks:

The risks covered by the insurer are related to meeting certain criteria, such as reaching a specific age, completing higher education, or marriage.

Death of the insured person before fulfilling the conditions.
Permanent loss of working capacity from an insured accident (30%-50%)—the percentage of the insurance amount equal to the percentage of lost working capacity.
Permanent loss of working capacity from an insured accident (over 50%)—the insured is exempt from further premium payments while maintaining the full amount of the insurance sum.

Additional Coverages:

At the insured’s choice and for an additional payment, one or more of the following additional coverages can be included:

Accident
Daily allowances for hospitalization
Surgical treatment
Exemption from premium payments for permanent incapacity of 30%-50% due to an accident
Temporary incapacity
Critical illnesses and their consequences

Insurance Amount:

Agreed upon when the contract is signed.

The insurance sum is paid out at the expiration of the insurance term.

Currency:

Bulgarian Lev, Euro, or US Dollars.

Insurance Term:

From 5 to 18 years.

Insurance Premium:

One-time payment
Installments (every 1, 3, 6, or 12 months)

Tax Benefits:

None.

Documents and Forms When Concluding the Insurance Contract:

Application for signing the “Life” insurance and health declaration attached to it:
- The application for signing the “Life” insurance is filled out by the policyholder, while the health declaration, located on the back, is filled out by the legal representative of the child, and the data refers to the insured child.
- In all cases, the policyholder must present a report from the child’s personal doctor regarding the child’s health.
Additional health declaration for the policyholder when adding the additional risk of exemption from premiums in case of the policyholder’s death.
Financial questionnaire: usually for policies worth over 40,000 BGN or 20,000 USD/EUR.
Declaration of the origin of funds: for a single premium over 30,000 BGN or pre-paid premiums.
Insurance policy.

Early Termination of the Insurance Contract:

The policyholder has the right to terminate the insurance contract early and receive the surrender value of the insurance, provided that the insurance is eligible for surrender.

The insurer has the right to terminate the contract according to the General Terms.

Object and Subject of the Insurance:

The insurer assumes certain risks defined in the insurance policy related to events concerning the life, health, and physical integrity of individuals aged 14 to 65, and up to 70 years old upon the expiration of the insurance term.

Covered Risks:

Death during the insurance period – the insurance sum plus additional interest at the time of death.
Permanent loss of working capacity due to an insurance accident, from 30%-50% – a percentage of the insurance sum corresponding to the percentage of lost working capacity.
Permanent loss of working capacity due to an insurance accident above 50% – the insured is exempt from further premium payments, with the full amount of the insurance sum remaining in force.
Survival – the insurance sum plus accumulated additional earnings during the period.

Additional Coverage:

At the insured person’s choice, additional coverage can be added for an extra charge, including one or more of the following:

Accident
Daily allowance for hospitalization
Surgical treatment
Exemption from premium payments in case of permanent incapacity over 50% due to an accident
Temporary incapacity
Critical illnesses and their consequences

Insurance Sum:

To be agreed upon at the time of signing the contract.

For Annuity Insurance:

The amount of the Monthly Annuity (Pension) is determined.

Annuity period:

The period for receiving the monthly annuity is agreed for a period from 1 to 20 years or for a lifetime, at the client’s choice.

Currency:

Bulgarian Lev (BGN), Euro (EUR), or US Dollar (USD).

Contract Duration:

From 5 to 25/30 years.

Insurance Premium:

One-time payment
In installments (every 1, 3, 6, or 12 months)

Tax Benefits:

For the client: Up to 10% of the taxable income of individuals.
For the employer: According to the Corporate Income Tax Act.

Documents and Forms for Signing the Insurance Contract:

Application for “Life” insurance and health declaration.
Financial questionnaire (usually for policies worth over 40,000 BGN or 20,000 USD/EUR).
Medical examinations – for certain insurance sums.
Declaration of the origin of funds – for amounts exceeding 30,000 BGN in total premiums due during the entire contract period.
Insurance policy.

Early Termination of the Insurance Contract:

The policyholder has the right to prematurely terminate the insurance contract and receive the surrender value of the insurance, provided that the insurance is eligible for surrender.

The insurer has the right to terminate the contract according to the General Terms and Conditions.

Object and Subject of the Insurance:

Bulgarian and/or foreign citizens who have temporary, permanent, or prolonged residence in Bulgaria. The insurance is valid for the period of stay of the insured outside the territory of the Republic of Bulgaria, and for foreign citizens, also outside the territory of the country of which they are citizens.

The insurance can cover individuals aged from 0 to 80 years.

The insurance does not cover individuals who have lost more than 50% of their work capacity, nor those under full guardianship.

Covered Risks:

Basic Coverage:

Medical expenses due to:

Acute illness– a disease occurring within the insurance period with an acute onset and progressive course, requiring urgent examination and treatment due to its painful nature and the direct threat to the life of the insured.
Accident– an event that occurs at a specific place and time during the insurance period, leading to death or bodily injury to the insured as a result of sudden and unpredictable external factors, such as mechanical, thermal, chemical, or toxic influences, which the insured did not cause intentionally, as well as sprains, strains, and tears of joints, tendons, and muscles. An accident also includes events leading to death or bodily injury to the insured while saving human life or property, as well as those resulting from mandatory preventive vaccinations.

Medical expenses include:

Treatment with or without hospitalization;
Medications and pharmaceutical supplies;
Radiological diagnostics;
Ambulance transport to the nearest hospital;
Surgical interventions;
Repatriation: to a hospital near the insured’s home in Bulgaria, and in case of death, the return of the remains.

Additional Coverage:

Death due to accident
– if the insured dies due to a covered accident, the designated beneficiaries are paid the death benefit specified in the policy.
Permanent loss of work capacity due to an accident
– if the insured suffers permanent work capacity loss due to an accident, the insurer pays a sum based on the percentage of disability incurred.
Emergency dental assistance
.
Burglary of luggage, loss of luggage, or destruction of luggage while traveling by plane or bus
– the insurer compensates for the theft of luggage abroad during travel or stay, up to the agreed policy limit (approximately 200 euros per suitcase). Personal items of the insured, carried for personal needs, are considered luggage. Any commercial goods or items carried for sale are not considered personal luggage. The insurer compensates for the full or partial loss and/or destruction of luggage transported in the hold of an airplane or bus.
Third-party liability
– covers property or non-property damages, up to the agreed policy limit, caused to a third party due to the insured’s fault abroad during the insurance period, as established by a legally binding court decision.
Legal assistance
– the insurer is obliged to pay expenses for the insured, up to the specified limit, for legal fees, court fees, and other payments related to a legal claim or procedure filed against the insured abroad during the insurance period, in case of unintentional violation of the laws of the country where the insured is traveling or temporarily residing.

Insurance Amount:

The liability limit of the insurance: the maximum sum that will be paid for all insured events occurring during the term of the insurance contract.

Insurance Premium:

According to the insurer’s tariff.

The amount is determined based on the following factors: duration, coverage limit, covered risks, purpose of the trip, age of the insured.

Insurance Term:

For single trips: from 1 to 365 days.
For multiple trips within one year: the insurance coverage for each trip is within 30 days (90 days for students and teachers), from the date of crossing the Bulgarian border at departure, to the date of crossing the border at return. This is referred to as MULTITRIP.

Relations in case of an insured event:

The insured is obligated to notify the assisting company immediately and follow its instructions.

Object and Subject of the Insurance:

The insurer covers certain risks defined in the insurance policy related to the life, health, and bodily integrity of individuals aged 1 to 65.

An accident is defined as an injury, burn, drowning, suffocation, frostbite, fracture, dislocation, strain, or rupture of tissues, joints, tendons, muscles, bones, or similar, resulting in loss of ability to work and/or death.

Individuals with permanent disability exceeding 50% are not insured, while those with permanent disability below 50% are insured under aggravated risk conditions, with an increased insurance premium.

The insurance can be individual or group.

Depending on the wishes of the insured or the insurer and the specifics of the activity (main profession, hobby, sports activities, mountain and/or sea tourism, etc.), the terms of the insurance are negotiated in accordance with the Special and General Terms of the “Accident” insurance.

Covered Risks:

General coverage for all types:

Basic Coverage:

Death from accident for individuals over 14 years of age
Permanent loss of work ability due to accident
Temporary loss of work ability due to accident

Additional Coverage:

Death from occupational disease
Permanent loss of work ability due to occupational disease
Temporary loss of work ability due to general or occupational disease
Medical expenses due to accident and general or occupational disease
Medical transportation expenses due to accident
Expenses for the transportation of mortal remains and/or burial due to accident
Rescue expenses due to accident
Daily hospital stay allowance

Insurance Amount:

The limit of liability for the insurance is the maximum sum of money that will be paid out in total for all insurance events occurring during the term of the insurance contract.

Insurance Premium:

According to the tariff of the insurance company.

Factors determining the premium:

Chosen coverage
Risk class of the insured (depending on the profession)
Insurance amount
Insurance period
Health condition (presence or absence of permanent disability)

Insurance Term:

Typically 1 year.

There are many variations of the insurance, each with its own specifics regarding covered risks.

General Accident Insurance:

The object of the insurance is individual persons or groups of people.

It covers risks such as:

Death from accident for individuals over 14 years of age
Permanent and temporary loss of work ability due to accident

Accident Insurance for Borrowers:

For individuals who have received a bank loan between the ages of 18 and 70.

Covered risks:

Death due to accident
Permanent loss of work ability exceeding 70% due to accident

The insurance amount is determined so that it does not exceed the debt owed to the financial institution on the day the policy is signed. It can be renewed annually or for the entire loan term.

Accident Insurance for Hotel Guests:

Insures Bulgarian and foreign nationals staying in hotels, motels, cabins, or other accommodations in Bulgaria. The insurer is responsible for events occurring within the hotel and its adjacent areas.

Main covered risks:

Death and permanent loss of work ability due to accident
Medical expenses due to accident and/or general illness
Repatriation expenses Additional risks may include:
Partial or total destruction of luggage, as well as theft
Civil liability for the guest’s damages to third parties

Accident Insurance for Tourists:

The insurance covers individuals visiting mountain and seaside resorts in Bulgaria.

Covered risks:

Death from accident for individuals over 14 years of age
Permanent and temporary loss of work ability due to accident
Medical expenses due to accident
Medical transportation expenses due to accident
Search and rescue expenses due to accident

Accident Insurance for Students:

The insurance covers students and their teachers in kindergartens, primary, secondary, higher vocational, and higher education institutions. The insurance is signed with a list of insured individuals, verified by the class teacher or director, and is an integral part of the insurance policy.

Covered risks:

Temporary disability due to accident from the 11th day – compensation is paid depending on the duration of the disability
Permanent reduction in work ability due to accident – compensation is paid as a percentage of the insurance amount
Death from accident – compensation is paid to the heirs with the agreed insurance amount
Medical expenses – expenses are reimbursed up to the amount specified in the policy

Workplace Accident Insurance:

For the life and work ability of workers and employees performing jobs in the main and auxiliary activities of companies with occupational trauma rates equal to or exceeding the national average.

Covered risks:

Death due to workplace accident
Permanent reduction in work ability due to workplace accident
Temporary disability due to workplace accident

The insurance amount is based on the gross monthly salary of the insured workers and employees at the time the insurance is signed.

For risks such as “death” and “permanent loss of work ability,” the insurance amount must be at least seven times the employee’s gross annual salary.

For the “temporary loss of work ability” risk, the insurance amount must be at least the employee’s monthly gross salary.

Insurance Premium:

According to the tariff of the insurance company.

Insurance Term:

Typically 1 year.

Subject and Object of the Insurance:

For a paid insurance premium, the insurance company covers the liability of the road carrier for goods in the territory of the Republic of Bulgaria in accordance with the Road Transport Act and in foreign territory under the Convention on the Contract for the International Carriage of Goods by Road (CMR).

Covered Risks:

This insurance covers the carrier’s liability for the total or partial loss or damage to the goods: for Bulgaria and abroad, as per Section IV of the Road Transport Act and Chapter IV of the Convention on the Contract for the International Carriage of Goods by Road (CMR).

The carrier is responsible for the full or partial loss or damage to the goods from the moment they are accepted for transport until their receipt, as well as for delays in delivery.

The carrier is relieved from this responsibility when the loss, damage, or delay is due to errors of the entitled party, at the latter’s instructions which were not a result of the carrier’s error, inherent defects of the goods, or circumstances that the carrier could not avoid and the consequences they could not overcome. To be released from liability, the carrier cannot cite defects of the vehicle used for transport or errors of the person from whom the vehicle was hired or its employees.

A delay in delivery is considered to have occurred when the goods are not delivered within the agreed period or, if no such period is agreed, when the actual transport time exceeds the usual time needed for such transport, performed with the care of a good merchant.

It is considered, without the need for further evidence, that the goods are lost when they are not delivered within thirty days after the expiration of the agreed period or, if no such period is agreed, within sixty days after the goods were accepted for transport by the carrier.

The carrier owes compensation for the total or partial loss of the goods, calculated based on their value at the place and time when they were accepted for transport. The value of the goods is determined according to the market price or, in the absence of such, by the usual value of goods of the same type and quality.

This insurance does not apply to the following transports:

Transports carried out within the scope of international postal conventions;
Transport of human remains;
Transport of belongings during a change of residence.

Insurance Amount:

According to the Convention on the Contract for the International Carriage of Goods by Road (CMR):

When the carrier owes compensation for total or partial loss, this compensation is calculated based on the value of the goods at the place and time when they were accepted for transport.

The value of the goods is determined according to the market price or, in the absence of such, by the usual value of goods of the same type and quality.

In all cases, the compensation cannot exceed 25 francs per kilogram of gross missing weight. The term “franc” refers to a gold franc weighing 10/31 grams at 0.900 fineness.

Additionally, the transport cost, customs fees, and other transport-related expenses will be fully refunded in the case of total loss and proportionally for partial loss; no other compensation is due.

According to the Road Transport Act, the compensation for total or partial loss of the goods is based on the damage but not more than 8.33 accounting units per kilogram of gross missing weight. In the case of total loss, the transport cost, customs fees, and other transport-related expenses are fully refunded, and for partial loss, they are refunded proportionally. No other compensation is due.

Insurance Premium:

According to the insurer’s tariff.

Insurance Term:

The insurance can be concluded for a period of one calendar year, for part of the year, or for a separate transport route.

The insurer may also conclude subscription insurance contracts as per Article 214, Paragraph 1 of the Insurance Code. In such cases, the coverage extends to all routes the insured carries out during a specified period. The insured is required to declare all routes performed during the month by the 10th of the following month.

Subject and Object of Insurance:

Under the “Professional Liability” insurance contract, the insurer is obligated to cover the liability of the insured for compensation of damages arising due to the negligent failure to fulfill their professional duties as stipulated by the applicable legislation.

The insurance covers the professional liability of the insured in relation to written claims from injured parties for damages caused to them, filed during the term of the insurance contract.

Covered Risks:

The liability of the insured with respect to:

All amounts up to the agreed limits of liability that the insured is legally obligated to pay as compensation for damages caused to third parties due to negligent failure to fulfill their professional duties.
Legal costs in lawsuits against the insured arising from claims covered by the insurance when the insurer is involved in the process.
The insurance event is considered to have occurred when the act or omission of the insured, which caused one or more damages, took place during the period of the insurance coverage.

The covered risks may be extended with:

Risks listed as exclusions under the General Terms or Special Terms for the respective profession may be included in the coverage if the law does not provide for another type or sub-type of insurance for them.
Agreement on a retroactive date for the insurance.

Insurance Sum:

Agreement on the liability limit in the annual aggregate and the liability limit for one event, including the judicial costs awarded for it, regardless of the number of insured persons and the injured parties who filed the claims.
Agreement on a deductible for each damage as a percentage of the damage amount, as a minimum absolute amount for each damage, or a combination of both.
At the discretion of the insurer, the deductible for the insured may be waived.

Insurance Premium:

Determined according to the insurer’s tariff.

It depends on:

The aggregate liability limit, the ratio between the aggregate limit and the liability limit for one event.
The specifics of the professional activity.
Inclusion of a retroactive date.
The number and qualifications of the insured’s staff working under an employment contract.

Insurance Term:

One year.

Insurance Compensation:

The insurer pays the insurance compensation upon submission of a written claim based on:

A final court decision against the insured, if it was rendered with the participation of the insurer.
A written agreement reached between the parties to the insurance contract and the injured party.

Types of Professional Liability:

Notaries
Lawyers
Expert accountants and financial auditors
Medical personnel
Insurance brokers and agents
Tour operators
Teachers and educators
Trustees
Private bailiffs
Surveyors and appraisers

Subject and Object of the Insurance:

The “General Liability Insurance” covers the insured’s liability for material and non-material damages caused to third parties during the term of the insurance while carrying out activities specified in the insurance policy, for which the insured is legally responsible under Bulgarian law.

Covered Risks:

The insured’s liability regarding:

All amounts up to the agreed liability limits that the insured is legally obliged to pay as compensation for damages caused to third parties, occurring during the term of the insurance, expressed in bodily injury (including death, illness, or loss of working ability) and/or damage or loss of movable and immovable property.
Legal costs in lawsuits against the insured, initiated based on claims covered by the insurance, when the insurer has been involved in the process.
Reasonable costs incurred by the insured to limit damages.

The covered risks may be specified in separate clauses:

Liability to third parties;
Employer’s liability;
Liability for activities;
Liability for pollution;
Product liability;
Liability for non-performance of contractual obligations.

The covered risks may be expanded with:

Risks listed as exclusions under the General Terms of the Insurer can be included in the policy coverage if the law does not provide another type or sub-type of insurance for them.
Agreement on a retroactive date for the insurance.

Insurance Amount:

The liability limits for the annual aggregate and for each event are agreed upon.

A deductible for each claim is agreed upon as a percentage of the claim amount, a minimum absolute amount per claim, or a combination of both. At the discretion of the insurer, the deductible for the insured may be waived.

Insurance Premium:

Determined by the insurer’s tariff.

It depends on:

The aggregate liability limit, the ratio between the aggregate limit and the liability limit for one event,
The specifics of the insured activity,
The inclusion of a retroactive date,
The number and qualifications of the insured’s staff working under employment contracts,
Agreed deductible.

Insurance Term:

One year.

Insurance Compensation:

The insurer will pay the insurance compensation upon submission of a written claim and based on:

A final court decision against the insured, if the decision was made with the insurer’s involvement;
A written agreement between the parties to the insurance contract and the harmed party.

The compensation will be paid to the harmed party or to the insured, when, with the knowledge and consent of the insurer, the insured has satisfied the claims of the harmed party.

The compensation amount is determined by a commission of the insurer. If necessary, to prove the event or to determine the extent of damages depending on their nature, the commission may consult specialists or experts.

Subject and Object of the Insurance:

The subject of the insurance is cargo during transport and the associated material interests during the transport, regardless of the type of transportation, for loss and/or damage that is a direct consequence of the risks agreed upon in the insurance policy.

Covered Risks:

Cargo insurance policies are standardized according to the original London Clauses, also known as the “Institute Cargo Clauses.” These are internationally accepted and are the same worldwide. The three types of clauses—“A,” “B,” and “C”—differ depending on the level of coverage. Clause “A” provides full coverage, Clause “B” offers limited coverage, and Clause “C” provides minimal coverage.

Clause A

Clause “A” 1.1.82 covers all possible risks of loss or damage to the insured cargo during transport, except for the risks of war, political unrest, strikes, riots, bankruptcy of the insured, currency fluctuations of goods on the stock market, deliberate action or inaction by the insured, as well as damage caused by insufficient or inadequate packaging or unsuitability of the vehicle. Covered risks include fire, explosion, road accidents, natural disasters, and theft, although in some countries, theft of the entire vehicle is excluded.

Clause B

Clause “B” 1.1.82 covers fire, natural disasters, earthquakes, water damage to the cargo, ingress of wet or river water into the hold or container, partial or total loss of a package of goods, though it is rarely purchased by insurers.

Clause C

Clause “C” 1.1.82 is specialized and only covers fire, explosion, road accidents, and total loss. It is typically used for bulk or liquid goods.

The practice has led the Institute of London Underwriters to develop and approve Special Clauses applicable for specific risks and certain types of cargo.

Military risks – under the terms of the Institute’s Military Clauses (Cargo) – 1.1.09;
Strikes, riots, and civil commotion – under the terms of the Institute’s Strikes Clauses (Cargo) – 1.1.09;
Transshipment;
Damage occurring during loading and unloading operations;
Breakage due to the nature of the cargo for fragile goods;
Spoilage due to damage to refrigeration equipment for goods transported in refrigerated vehicles;
Other specific risks.

Insurance Amount:

The insurance amount is determined based on the invoice value. At the insured’s request, the invoice value may be increased by up to 10% to cover lost profit in case of a potential insurance event.

Insurance Premium:

The premium paid for the insurance depends on the type of coverage, the destination, the type of transport (rail, road, sea, combined, air), the value of the cargo, and its packaging method.

Insurance Period:

Typically, the insurance period is from the moment the cargo is loaded until its arrival at the final destination. For an additional premium, loading and unloading operations can also be insured.

Subscription Insurance:

The insurance coverage extends to all or certain types of cargo of the insured and is concluded for a specific period.

Choosing the subscription form provides several advantages for the insured:

Simplified procedure for arranging insurance documents;
Pre-carrying of risk by the insurer;
Pre-negotiation of insurance terms;
Preferential rates with the possibility of applying discounts;
Convenient payment schemes for the insurance premium.

Subject and Object of Insurance:

The subject of the insurance includes construction and installation works carried out in both high-rise and low-rise construction, materials and equipment, installed systems and facilities, construction machinery, and mechanization, as well as expenses related to construction or clearing debris in the event of an insured incident.

During the insurance contract period, the insurer compensates the insured for any damage, loss, or harm with unforeseen and/or sudden characteristics caused by any reason, except for explicitly specified and additionally agreed exclusions, related to the objects included in the policy, up to the limits specified for each insured event and the insured sum listed for each object. The insurance also covers the civil liability of the investor or contractor towards third parties for damage to property and non-material harm.

This insurance is intended for investors, entrepreneurs, contractors, and subcontractors involved in construction and installation activities.

Covered Risks:

Material Damage:

The insurance coverage includes total loss or partial damage to all material assets on the construction site due to sudden and unpredictable occurrences of the following risks:

Accidents during construction caused by errors and lack of skills in the workforce, negligence, unintentional technological or execution omissions in individual construction tasks.
Fire, explosion, lightning strike, collision or falling of piloted aircraft, its parts or cargo, and damage caused by water, foam, or extinguishing agents.
Storm (hurricane), heavy rain, flooding.
Damage from the weight of natural accumulation of snow and ice and/or frost, avalanches, rising sea level (sea waves).
Earthquake, landslides, or collapse of earth layers and rock mass, sinking of earth layers.
Theft through burglary, only for materials and equipment that are part of the object and stored in locked premises.
The insurance coverage may also include reasonable costs (necessary expenses) for clearing the site after an insured event, but not exceeding the agreed insurance amount.
The coverage also applies to damage to building materials, equipment, and construction machinery intended for the insured object when temporarily stored on the site, as well as during assembly and disassembly due to the above-mentioned risks (excluding burglary).

Liability to Third Parties:

The insurer will compensate the insured up to the limits specified in the policy for amounts for which the insured is legally responsible to pay in connection with:

Death, bodily injury, or illness caused by an accident.
Full or partial damage to movable or immovable property belonging to third parties, as long as it is directly related to the construction insured under the “Material Damage” section and occurred on or near the construction site during the insurance period.

In connection with claims for compensation under this section, the insurer will compensate the insured for:

Awarded interest and legal fees for the case against the insured, excluding attorney fees.
All other costs incurred with the written consent of the insurer.

Additional Coverage:

Loss or damage due to strike, riot, and civil unrest.
Warranty service for construction work.
Additional costs for overtime, night shifts, work on holidays, expedited transportation.
Property stored outside the construction site.
Damage to underground cables, pipes, and other utilities.
Risk of the designer.
Vibration, removal, or weakening of support.

Insurance Sum:

The insurance sum for individual groups of property is determined as follows:

For construction and installation works – the full replacement cost of the construction work upon completion of the object, including the value of all construction materials, labor costs, transportation costs, rentals, duties, taxes, and other related expenses.
For construction materials and equipment – the replacement cost of machinery, equipment, and tools (of the same type and quality), as well as materials found on the construction site.

Insurance Term:

The insurance takes effect from the start of construction and continues until the final completion of the object and the issuance of the handover protocol.

Subject and Object of Insurance:

The subject of the insurance includes all types of electronic equipment and systems with industrial or commercial purposes, which are operated under normal conditions and in compliance with the manufacturer’s requirements. Such electronic systems may include:

Computers and office equipment
Communication and radio equipment
Medical equipment in hospitals, private medical and dental offices, and laboratories
Equipment in printing
Television equipment
Industrial electronics
Measuring instruments
Alarms, test devices, and automation equipment
Information carriers
Other equipment.

Covered Risks:

Main Covers:

Fire, including the consequences of extinguishing it, explosion, lightning strike, collision with an aircraft or other flying objects or items falling from them, collision with a vehicle or animal.
Natural disasters such as storms, hurricanes, hail, floods, falling trees and branches.
Landslides or soil collapse.
Weight from natural snow or ice accumulation.
Water damage due to failure of plumbing, sewage, and heating installations and the equipment associated with them.
Malicious actions by third parties (vandalism).
Costs incurred for clearing debris, disassembling or demolishing, fencing or reinforcing, and fees for architects and/or experts.
Overvoltage, induction, short circuit, electrical shock.
Theft through burglary and robbery.
Negligence, improper handling of equipment, operational errors by the insured’s staff.
Earthquakes.

Additional Covers:

The insurer covers additional costs resulting from an insurance event under the basic coverage that are necessary to continue work procedures that cannot be performed otherwise. These include:

Use of external equipment.
Application of non-standard working procedures and methods.
Renting replacement equipment.
External services.
Hiring additional staff.

Exclusions:

Direct and/or indirect damages resulting from:

Wear and tear, depreciation, or corrosion.
War, military actions, civil unrest of any kind.
Willful actions or gross negligence by the insured or their employees.
Defects or deficiencies for which a third party/supplier is responsible under law or contract/guarantee-related damages.
Interruption of gas, water, or electricity supply.
Aesthetic defects.
Financial losses or missed profits, devaluation, fines, and others arising as a result of the insurance event.
Damage from birds, animals, rodents.
Nuclear explosions, ionizing radiation, radioactive contamination, biological or chemical infection.

Insurance Sum:

It is determined based on the replacement value of the insured property, i.e., it should correspond to the cost of replacing the insured equipment, devices, apparatus, and systems with new ones of the same type, power, and purpose. The replacement costs include transportation, disassembly, and assembly costs, and any applicable taxes and customs duties.

Insurance Period:

One year.

Subject and Object of the Insurance:

The property described in the policy, located in the Republic of Bulgaria, includes:

Residential property: apartment, standalone house, or part of a house
Movable property located within the residence: general furniture, personal items and other household goods, household appliances, audiovisual and electronic equipment, and business property

Covered Risks:

Basic Coverages:

Fire, including the consequences of extinguishing it, explosion, lightning strike, collision with an aircraft or other flying objects or falling debris from them
Natural disasters such as storm, hurricane, hail, flood, falling trees, and branches
Landslides or collapse of soil layers
Weight from the natural accumulation of snow or ice
Water damage resulting from a plumbing accident
Malicious actions by third parties (vandalism)
Collision with a motor vehicle or animal
Costs incurred for clearing debris, dismantling or demolition, fencing, or reinforcing, as well as architect and/or expert fees

Additional Coverages:

Earthquake
Theft through burglary or technical means, robbery
Civil liability – covers the insured’s responsibility for property and non-property damages caused to third parties as a result of an event covered by the insurance risks, for which the insured is liable according to Bulgarian law
Rent for alternative accommodation – if the residence becomes uninhabitable due to an event covered by the basic coverage, the insured will be compensated for renting a comparable property for the duration of the restoration period
Breaking of glass: windows, doors, showcases
Accident involving a family member/household member – the insurer will compensate the insured and their family members for permanent loss of ability to work or death due to an accident, up to the amount specified in the insurance policy

Insurance Sum:

Depending on how the insurance sum is determined, there are two types of insurance policies:

Limited or First Risk Coverage:

The insured chooses the limits for their property. In the event of an insurance claim, the insurer pays compensation for the full amount of the damage, but no more than the insured sum stated in the policy. After paying the insurance compensation, the insurance sum is reduced by the amount of the compensation paid.

Based on the Actual Value of the Property:

The value is determined for each individual item.

Insurance Premium:

The premium is determined according to the insurer’s applicable rate. It can be paid in a lump sum or in installments.

Insurance Term:

One year.

Subject and Object of the Insurance:

Movable and immovable property of commercial companies, property of public (state and municipal) institutions, and non-profit organizations. This insurance is concluded for objects with an insured sum over 1,000,000 BGN, with exceptions allowed for property of budgetary organizations, non-profit organizations, and institutions.
Long-term tangible assets: buildings; machinery, equipment, including agricultural inventory, other fixed assets, vehicles (excluding motor vehicles with registration numbers, vessels, and aircraft);
Expenses for acquiring fixed assets (excluding unfinished construction);
Material reserves, including materials, production, goods, unfinished production;
Other assets – individualized in the description.
Third-party property (rented, accepted for repair, processing, and/or storage) which is held by the Insured on a legal basis.

Covered Risks:

Main coverage: fire, thunder (lightning), explosion, implosion, collision and/or falling of a piloted flying object, its parts and/or cargo.
Additional risks: storm; hail, heavy rainfall, flooding; natural accumulation of snow or ice; frost, freezing; landslide or collapse of earth layers; damage caused by groundwater or marine waves; accidents in plumbing, sewage, and steam installations and related devices; impact from a vehicle or animal; earthquake; arson; necessary expenses; vandalism; accidents involving loading and unloading machinery.
Theft through burglary and robbery (usually in a separate policy covering only these risks).

Insured Sum:

Is determined as follows:

For fixed assets (DFA):

At actual value: the cost at which a similar item of the same type and quality can be purchased or the market value at which the same could be sold.
At replacement value: the cost of rebuilding, delivering, or manufacturing the insured asset (buildings, machinery, expenses for fixed assets) in the same type and quality.
At balance sheet or adjusted balance sheet value.
For material reserves: the actual value represents the acquisition cost or production cost. The insured sum may be agreed:
As a fixed amount – the value of the maximum quantity stored in the premises and warehouses of the Insured.
Based on periodic declarations – the declaration period is agreed upon with the Insured.
For some additional risks, limits are agreed, based on the First Risk principle (e.g., vandalism, necessary expenses, breaking glass, etc.).

Insurance Premium:

Is determined as a percentage of the insured sum.

Factors include:

Risk class of the object
Chosen covered risks
Age and number of floors of buildings
Other arrangements.

Discounts on the nominal premium:

One-time payment;
Agreed deductible or higher-than-usual deductible;
Spread of objects, leading to reduced risk;
Degree of security of the object;
Comprehensive insurance;
No damages in previous years upon renewal.

Insurance Period:

Typically concluded for one year, but longer periods of up to 5 years are also possible.

Insurance “Liability for Ownership and Use of Vessels”

Subject and Object of Insurance:

This insurance provides coverage for physical or legal entities against losses and/or expenses they are obligated to pay due to damages caused to third parties (property and/or non-material damage) related to the ownership and/or use of vessels.

The subject of this insurance includes the civil liability of the owners of ocean-going, maritime, river, lake, and canal vessels for property and non-material damages they may cause to third parties, as vessel owners and users.

Covered Risks:

Collision or impact during movement, maneuvering, or while anchored, caused by the insured vessel with:
– Another vessel, including damage to cargo and/or other property carried on the other vessel.
– Port facilities, both stationary and mobile objects, docks, piers, buoys, and communication cables.
Death or bodily injury to third parties outside the vessel covered by this insurance.
Caused general average or salvage under contract of another vessel and its cargo, where liability arises from a collision between the insured vessel and another vessel, or other movable or anchored objects/facilities.
Delays of the affected vessel to continue its journey and additional costs related to the delay, as well as other costs related to the prevention of the vessel and its cargo from being used.

Insurance Sum:

Liability limits are determined based on the territorial waters in which the insured vessel will operate and local legislation but generally should not exceed ¼ of the vessel’s actual value for one damaged object or injured person, and the full actual value of the vessel in the case of two or more damaged objects or persons. Agreed liability limits for one damaged object or person, as well as for two or more, are specified in the insurance contract. The total sum of all payments under this contract cannot exceed the limits specified in the policy.

Insurance Premium:

According to the current rate of the insurer.

Insurance Term:

1 year.

Relations in Case of an Insurance Event:

The insured is obligated to:

Respond in writing to questions posed by the insurer.
When signing an insurance contract, inform the insurer if they have any other policies covering their liability to third parties.
Notify the insurer of any changes in risk circumstances that increase the potential for third-party damage.
Notify the insurer within seven days upon learning of the occurrence of an insured event.
Refrain from admitting liability or responsibility and from entering into agreements without prior consent from the insurer.

The insurer has the right to:

Terminate the insurance contract in case of non-fulfillment of the insured’s obligations, with 15 days’ written notice, and to refuse or reduce the insurance compensation in case of an insured event.
Reduce or refuse compensation if the insured fails to notify within the required time frame after an insured event.
Request documentation to prove the event and the extent of damages.

Subject and Object of the Insurance:

The civil liability of the insured physical and legal entities for damages, both property and non-property, caused by the use and/or ownership of aircraft.

The insurance is offered in two clauses:

Civil Liability towards third parties (other than passengers)
Civil Liability towards passengers

Covered Risks:

Under the clause Civil Liability towards third parties (other than passengers):

In the event of an insured event, the insurer will cover all amounts claimed as legal claims against the insured, which they must pay as compensation (including legal fees), resulting from bodily injury (fatal or non-fatal) or damage to property caused directly by the aircraft or by any person or object falling from it.

The insurer is not responsible for claims regarding bodily injury (fatal or non-fatal) or damage to:

The director, employee, or partner of the insured while performing duties assigned by the insured;
Members of the flight crew, other personnel on board engaged in the operation of the aircraft;
Passengers during boarding, deboarding, or while on board;
The insured for the loss or damage of any property belonging to the insured or under their care and control;
Pollution, noise, and others.

Under the clause Civil Liability towards passengers:

The insurer will compensate the insured for all amounts they are ordered to pay and/or will pay as compensation for damages (including legal fees) regarding:

Accidental bodily injury (fatal or non-fatal) to passengers during boarding, deboarding, or while on board.
Loss or damage to baggage and personal belongings of passengers resulting from an incident involving the aircraft.

The insurer is not responsible for claims regarding bodily injury (fatal or non-fatal) or damage to:

The director, employee, or partner of the insured while performing duties assigned by the insured;
Members of the flight crew, other personnel on board engaged in the operation of the aircraft.

Aircraft Hull Insurance

Subject and Object of the Insurance:

The subject of this insurance includes airplanes, helicopters, and other aircraft that are insured against total loss or partial damage.

Covered Risks:

All risks arising during takeoff, flight, landing, and taxiing are covered, as well as additional costs resulting from emergency measures required to ensure the immediate safety of the aircraft due to damage or forced landing. With some insurers, these costs may reach up to 10%.

Excluded Risks:

The insurer will not pay compensation for:

Use of the aircraft for illegal purposes or other special uses;
Any case where the aircraft is used outside the geographical limits specified in the insurance policy, unless due to force majeure;
Cases where the aircraft is piloted by persons other than those authorized;
Landing or takeoff from a place not in accordance with the recommendations set by the aircraft manufacturer;
Having more passengers on board than the declared number of seats in the aircraft;
Damages caused during an act of terrorism or war;
Any malicious acts and sabotage.

Insurance Sum:

It is the actual value of the aircraft at the time of the insurance agreement.

Insurance Premium:

According to the insurer’s applicable tariff. It generally consists of two components: “in flight” and “on land.”

Insurance Term:

1 year.

Object and Subject of the Insurance:

The insured objects are the driver and passengers located in or in close proximity to the vehicles while boarding or alighting. All seats in the vehicle, as recorded in the registration certificate, including the driver’s seat, are insured. Insurance is allowed for the driver’s seat only if there is a compulsory “Accident Insurance for Passengers in Public Transport Vehicles” policy in place.

Covered Risks:

Basic Coverage:

Permanent loss of working capacity and death as a result of an accident.

Additional Coverage:

Temporary loss of working capacity for more than 20 days due to an accident.
Medical expenses resulting from an accident.

The insurance coverage applies to accidents occurring while boarding, traveling, or alighting from the vehicle.

Exclusions:

The insurance does not cover the death of a minor or a person under guardianship. It also excludes a driver operating a vehicle under the influence of alcohol beyond legal limits, or other intoxicating substances, and/or without a valid driver’s license for the respective vehicle category. It also excludes cases where the driver refuses an alcohol test, as documented by the relevant authorities. The insurer does not pay compensation to a person traveling in the vehicle if it is conclusively proven that this person knew about the driver’s unauthorized use of the aforementioned substances and/or their lack of a valid driver’s license.

Insurance Period:

Usually 1 year.

Insurance Compensation:

The insurer pays sums or reimburses expenses within 15 days of submitting all necessary documents proving the event by reason and amount or provides a reasoned refusal for payment if there are grounds for it.

The insurer pays sums or reimburses expenses as follows:

In the case of death resulting from an accident suffered by the insured during the insurance period, occurring within one year from the date of the accident, the insured sum is paid to the legal heirs.
In the case of permanent loss of working capacity due to an accident, a percentage of the insured sum, equal to the percentage of lost working capacity, determined by the insurance-medical commission (IMC) of the insurer or by TELC/NELC after the final and full stabilization of the insured, but no earlier than three months from the date of the accident and no later than one year after it, is paid to the insured person.
In the event of the insured person’s death, if the insurer has paid sums for permanent loss of working capacity, these amounts are deducted from the sum to be paid for death.
For temporary loss of working capacity for more than 20 days due to an accident, the insurer pays the insured a sum as specified in the insurance policy.
The insurer reimburses the insured for the actual medical expenses incurred within the limits specified in the insurance policy.

Subject and Object of the Insurance:

Civil liability of insured individuals and legal entities for property and non-property damages caused by the use and/or ownership of motor vehicles (MVs).

For this insurance, the General Terms are regulated by the Insurance Code (Chapters VIII, XXIII, and XXIV) and Ordinance 24 of March 8, 2006, on compulsory insurance, as well as Chapter 47 of the Insurance Code and the methodology for settling claims for damages caused to motor vehicles.

Territorial Validity:

Republic of Bulgaria and countries participating in the “Green Card” system.

Covered Risks:

The insurer under the civil liability of motorists covers the liability of the insured for damages caused to third parties as a result of the ownership or use of a motor vehicle.

Damages caused to third-party property.
Non-property and property damages resulting from bodily injury or death.
Lost profits that are a direct and immediate result of the damage.

Excluded Risks:

The insurer does NOT pay compensation for:

Damages suffered by the responsible driver of the motor vehicle.
Damages caused to the motor vehicle operated by the insured, as well as damages to property transported by that vehicle.
Damages caused by the use of the motor vehicle during an act of terrorism or war.
Damages caused by the use of the motor vehicle in competitions.

Insurance Amount:

According to the Insurance Code, the mandatory minimum insurance amounts from June 11, 2012, are as follows:

For non-property and property damages resulting from bodily injury or death – 2,000,000 BGN for each event per injured person.
10,000,000 BGN for each event involving two or more injured persons.
For property damages – 2,000,000 BGN for each event.

Insurance Premium:

According to the insurer’s current tariff.

Discounts may be applied for:

Territory of operation.
Age of the driver.
Driving experience of the driver.
One-time payment.
Age of the motor vehicle.
Valid CASCO policy.

Increases may be applied for:

Age of the driver.
Driving experience of the driver.
Faulty accidents in the last 3 years.
Motor vehicles rented out.
Motor vehicles used for taxi services.
Motor vehicles intended for the transport of dangerous goods.

Insurance Period:

1 year.

Issuing a policy for a shorter period is allowed only in the following cases:

For motor vehicles with temporary or transit registration under Bulgarian legislation.
Border insurance.
For companies engaged in the import and sale of motor vehicles.
For slow-moving motor vehicles and self-propelled machines.

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Subject and Object of the Insurance:

Covered Risks:

Insurance Term:

Subject and Object of Insurance:

Contracting Parties:

Covered Risks:

Excluded Risks:

Insurance Sum:

Insurance Premium:

Insurance Term:

Subject and Object of the Insurance:

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Insurance Premium:

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Object of Insurance:

Term:

Object of Insurance:

Term:

Object of Insurance:

Term:

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Additional Coverage:

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Currency:

Contract Duration:

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Tax Benefits:

Documents and Forms Required When Concluding the Insurance Contract:

Early Termination of the Insurance Contract:

Object and Subject of the Insurance:

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Additional Coverages:

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Currency:

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Insurance Premium:

Tax Benefits:

Documents and Forms When Concluding the Insurance Contract:

Early Termination of the Insurance Contract:

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For Annuity Insurance:

Annuity period:

Currency:

Contract Duration:

Insurance Premium:

Tax Benefits:

Documents and Forms for Signing the Insurance Contract:

Early Termination of the Insurance Contract:

Object and Subject of the Insurance:

Covered Risks:

Basic Coverage:

Additional Coverage:

Insurance Amount:

Insurance Premium:

Insurance Term:

Relations in case of an insured event:

Object and Subject of the Insurance:

Covered Risks:

General coverage for all types:

Basic Coverage:

Additional Coverage:

Insurance Amount:

Insurance Premium:

Insurance Term:

General Accident Insurance:

Accident Insurance for Borrowers:

Accident Insurance for Hotel Guests:

Accident Insurance for Tourists: