Payment of insurance compensation by the Guarantee Fund

Under Article 557(1), point 2(a), of the Bulgarian Insurance Code, the Guarantee Fund compensates pecuniary and non-pecuniary loss where an accident in the Republic of Bulgaria was caused by a motor vehicle for which no compulsory motor third-party liability insurance had been taken out. Under Article 558(7) of the Code, once the Fund has paid compensation under Article 557(1) and (2), it is subrogated to the rights of the injured person up to the amount of the compensation and interest paid, together with the costs of assessing and paying that compensation.

The Fund has a statutory right to recover from the person at fault the compensation it paid to the injured person and to exercise the latter’s rights against the person who directly caused the loss. In legal nature and scope, this right is analogous to that of an insurer that has compensated the person entitled to payment under an existing third-party liability policy. Accordingly, the limitation period for such a recovery claim starts when the insurance compensation, or its equivalent payable by the Guarantee Fund, is paid.

If you have questions about a road traffic accident, motor own-damage insurance (Casco) or motor third-party liability insurance, or if an insurer refuses to pay compensation under a property liability policy, seek advice from a lawyer who practises insurance law, represents clients in court and has experience in litigation concerning torts and unpaid compensation.

If you have received a statement of claim or a summons to appear in court, consult an experienced lawyer without delay about your rights and the steps you need to take to protect your interests.