The Managing Organization of the Green Card System, which runs the Europe-wide network for third-party liability insurance for motorists) sent a letter to the European Commission, the European Insurance and Occupational Pensions Authority and Bulgarian Prime Minister Boyko Borissov, to warn about bad practices at two Bulgarian insurers - Lev Ins and DallBogg. The letter notifies that if the problems with those insurers are not resolved, Bulgaria may be excluded from the Green Card System which guarantees right to compensation in case of damage or injury caused by a foreign motor vehicle.
The two Bulgarian insurers are accused of failing to meet their obligations to reimburse damages caused by their clients. DallBogg has 13.5 million euro outstanding liabilities, while Lev Ins has 51 million euro. Both DallBogg and Lev Ins are already short of counterparts in many countries of the system. Lev Ins has rejected the claims as incorrect and said that it has contracted new representatives in those countries.
Another concern is that DallBogg has declared more than 800 insurance policies null and void which can potentially hinder the efficient and timely compensation of the victims of cross-border car accidents. The Bulgarian regulator said it had taken measures for improvements with a December 12 deadline. Urgent measures are needed because in January 2018 the Managing Organization of the Green Card System is set to decide how to deal with the Bulgarian insurance market.
The Managing Organization of the Green Card System, which runs the Europe-wide network for third-party liability insurance for motorists) sent a letter to the European Commission, the European Insurance and Occupational Pensions Authority and Bulgarian Prime Minister Boyko Borissov, to warn about bad practices at two Bulgarian insurers - Lev Ins and DallBogg. The letter notifies that if the problems with those insurers are not resolved, Bulgaria may be excluded from the Green Card System which guarantees right to compensation in case of damage or injury caused by a foreign motor vehicle.
The two Bulgarian insurers are accused of failing to meet their obligations to reimburse damages caused by their clients. DallBogg has 13.5 million euro outstanding liabilities, while Lev Ins has 51 million euro. Both DallBogg and Lev Ins are already short of counterparts in many countries of the system. Lev Ins has rejected the claims as incorrect and said that it has contracted new representatives in those countries.
