Bulgaria enacts bonus-malus system for car insurance

bonus-malus system motor third party liability insurance premiums road safety financial regulation

Bulgaria has officially enacted regulatory changes to implement a ‘bonus-malus’ system for mandatory motor third-party liability insurance. The new rules, published on August 25, require insurance companies to adjust their information systems to account for drivers' claims history over the previous five years.

Under this system, drivers with a clean record of no accidents will be eligible for lower insurance premiums, while those responsible for more or more severe damages will face higher costs. Data will be centrally managed and verified by the Insurance Fund, ensuring that a driver's history follows them even if they switch insurance providers. Each insurer will independently determine its own risk assessment methodology and pricing based on this centralized data.

However, the practical implementation faces delays. The Road Safety Institute warns that the Unified Information System for Risk Assessment, Management, and Control (EISUKR) is not yet fully operational and may take up to 18 months to be completed. While the legal framework is now in place, experts suggest the system may not fully function in its intended capacity until 2027. Critics from the Road Safety Institute have described the announcement as ‘cheap PR,’ arguing that the system focuses more on insurer risk management than on proactive road safety prevention.

Entities

Association of Bulgarian Insurers · Bulgaria · Financial Supervision Commission · Guarantee Fund · Insurance Fund · Plamen Danailov · Road Safety Institute

Claims

What the coverage asserts, and how many sources carry each claim.

[● 3 SOURCES] The system will track the severity of damages caused, not just the frequency. trafficnews.bg · www.standartnews.com
[● 2 SOURCES] Traffic fines for speeding or other violations will not automatically increase insurance premiums under this system. www.standartnews.com
[● 2 SOURCES] The Guarantee Fund will provide access to claims history to ensure data follows the driver when switching insurers. www.standartnews.com
[● 3 SOURCES] Insurance companies will independently determine their own pricing and risk assessment criteria. trafficnews.bg · www.standartnews.com
[● 3 SOURCES] Insurance premiums will be based on a driver's claims history over the last five years. trafficnews.bg · www.standartnews.com
[● 3 SOURCES] The bonus-malus system for mandatory third-party liability insurance is being implemented. trafficnews.bg · www.standartnews.com