Fair compensation

Under compulsory third-party liability insurance, the insurance indemnity depends on the damages payable in tort. Damages for non-pecuniary harm are compensatory. As the Bulgarian Supreme Court explained in Plenary Ruling No. 4/1968, which binds the courts, fairness is not an abstract concept from which a hypothetical award for non-pecuniary harm can be derived. It always requires an assessment of specific circumstances that actually exist, together with society’s understanding of fairness at its particular stage of development. To meet the standard of fairness in Article 52 of the Obligations and Contracts Act, damages for non-pecuniary harm must therefore be proportionate to the harm actually suffered. Its extent depends on the severity, nature, duration and intensity of the adverse effects on the individual, the economic conditions in the country at the time of injury and the relevant established case law. See, among others, the following judgments of the Second Commercial Division of the Supreme Court of Cassation: No. 25 of 17 March 2010 in commercial case No. 211/2009; No. 93 of 23 June 2011 in commercial case No. 566/2010; No. 189 of 4 July 2012 in commercial case No. 634/2010; and No. 71 of 18 June 2020 in commercial case No. 900/2019.

Fair compensation within the meaning of Article 52 is the monetary equivalent not only of the particular injured person’s pain and suffering but also of all the accompanying inconvenience and emotional, physical and psychological distress (Supreme Court of Cassation Judgment No. 43 of 30 March 2018 in civil case No. 1461/2017, Third Civil Division). To compensate a person injured by a tort fairly under Article 52, the court must consider the nature and severity of the bodily injury, the intensity and duration of the physical and emotional pain and suffering, the prospects for their resolution, and economic living conditions in the country at the time of the injury (Supreme Court of Cassation Judgment No. 35 of 12 April 2016 in commercial case No. 3515/2014, Second Commercial Division).

This article is not a legal opinion or advice concerning a particular situation or person. The author does not claim to cover compensation or tort liability exhaustively. For assistance with a similar case, consult a civil lawyer who handles tort claims.