Maximum Amount of Compensation and Legal Limitations

In Bulgarian legislation, the issue of the maximum amount of compensation in cases of occupational accidents represents an essential aspect of balancing social protection for workers with the principle of predictability for employers and insurers. The main rules in this area are contained in the Labour Code (LC), the Social Security Code (SSC), and the Law on Obligations and Contracts (LOC), while their interpretation and application have been further developed through the case law of the Supreme Court of Cassation (SCC) and lower courts.

The principle established in Article 200 of the Labour Code provides that the employer bears strict (objective) liability for all damages caused to the employee in the course of or in connection with the performance of their employment duties. This means that, in the event of an occupational accident, the employer owes full compensation for both pecuniary and non-pecuniary damages, regardless of fault, as long as a causal link between the work and the injury has been proven. In this sense, the law does not set an explicit upper limit on the employer’s liability toward the injured employee.

However, limitations may arise in cases where liability is transferred to an insurer. Under the Ordinance on Mandatory Insurance of Workers and Employees for the Risk of Occupational Accident, the insurer’s liability is limited to the insured amount specified in the insurance policy. This means that even if the actual damages exceed that amount, the insurer is only liable up to the agreed limit, and the employer may be held liable for the remainder.

In court practice, a frequent question arises as to whether such contractual limits can restrict the rights of the injured party. In decisions from several civil cases, the courts have held that when a valid “occupational accident” insurance policy exists, the insurer is liable up to the amount of the insurance sum specified in the policy, which may not be less than seven times the employee’s annual gross salary. These rulings illustrate the trend in judicial practice toward applying a proportional and predictable approach, ensuring both fairness and consistency in compensation awards.

The Supreme Court of Cassation has emphasized in multiple decisions that the main criterion for determining compensation remains the principle of fairness under Article 52 of the Law on Obligations and Contracts, which requires courts to take into account the specific impact on the injured person’s health, social situation, and economic life. Nevertheless, judicial practice allows for the introduction of relative limits to prevent excessive and disproportionate awards among similar cases.

Another important aspect concerns the possibility of combining different sources of compensation. When the injured worker receives benefits under the Social Security Code (for example, a disability pension), this does not automatically reduce the compensation due under the Labour Code, unless the court finds that both payments cover the same legal basis and the same damage. This ensures the worker’s right to full redress, while maintaining reasonable legal and financial balance.

In conclusion, the maximum amount of compensation for an occupational accident in Bulgaria is not fixed by law, but may be limited by the insurance contract or by judicial practice, which creates predictable standards. The purpose is to balance the protection of the injured person with the principle of legal certainty for employers and insurers. Every limitation must be interpreted strictly and in accordance with the principle of fairness, so as not to undermine the social function of labour and social security law.

If you or a family member have experienced a similar situation, it is best to contact a lawyer specialized in insurance law who can advise and represent you in court. This article does not constitute legal advice or an opinion from attorney Mihail Tomov, nor is it related to any specific case or client. For legal assistance regarding an occupational accident or any insurance claim, an individual legal consultation should be conducted.