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Rumen Georgiev commented the contributions in Guarantee Fund before BNR

Garancionen fond

The funds accrued from compulsory insurance should be limited

In program "Horizon" of Bulgarian National Radio, the Executive Director of Armeec Insurance Jsc., Rumen Georgiev commented the amendments to the Insurance Code adopted at first reading in Parliament, according to which the Guarantee Fund receives the right to determine the amount of compensation in traffic accidents with trauma cases. Rumen Georgiev believes that this is wrong, because the only function of the Guarantee Fund is to pay for events of defaulting drivers of motor vehicles, which is regulated by law. Moreover, the Fund has enough accumulated reserves and even the contributions to the Fund should be reduced, because no one has ever shown how to spend this money, except that the Fund lost in Corporate Commercial Bank huge sums on deposit, commented Georgiev.

According to him, insurers have different positions on the issue, but they generally share the opinion that the contributions to the Guarantee Fund should not be increased and must be reduced, which actually means that no new functions should be added, said Georgiev.

Amounts collected in the Fund are deductions from all compulsory insurances concluded in the country and serve as compensation for damages caused by uninsured vehicles. 8.50 BGN from each civil liability insurance policy go into the Fund to cover damages of uninsured drivers.