Motor CASCO insurance

The insurance covers total loss or partial damage that the insured would incur with the insured vehicle, in the event of an insurance risk.

The mainly covered risks can be summarized in damages caused as a result of:

• Road transport accident;
• Fire and/or explosion;
• Natural disasters;
• Breakdown of industrial and domestic water pipelines, sewerage, gas, steam and electrical installations;
• Malicious actions of third parties;
• Theft and robbery;
• Others.

Covered risks under the insurance are grouped by the insurer in different clauses. Thus, different levels of coverage are obtained depending on the needs and needs of the insured. It is possible that the insurer offers coverage and only for a separate risk, such as the “Theft” risk.

The period of insurance may be one year or longer as agreed by the parties. Insurance coverage begins at 00.00 on the day indicated in the policy for commencement. The insurance cover takes effect after the payment of the insurance premium or the first premium installment for the policy in case of deferred payment of the premium. The cover is terminated upon the contract’s expiration, upon its termination by any of the parties, or in the case of a delay in the payment of a due premium installment when the delay exceeds 15 (fifteen) days after the respective due date.

The cover is valid for the territory of the Republic of Bulgaria, but it can be extended to other countries.

The insurance premium is the cost of insurance and is determined by the insurer depending on the insurance amount, the type and years of the vehicle, the risk coverage and the agreed franchise. It is also possible to apply the Bonus-Malus system, depending on whether the insured has suffered damage in a previous period. Additional discounts can be made for the availability of other insurance contracts, when paying the premium due once, etc. Additional increases are made depending on the purpose of the vehicle — car rental, taxi, transportation of hazardous materials, etc. The insurance premium due is paid once at the conclusion of the insurance or in deferred installments, at the choice of the insured. In case of deferred payment, the insurer may apply an increase in the accrued annual premium. The insurance contract comes into force after payment of the premium due or the corresponding deferred part of it, unless otherwise agreed. In the case of an agreed deferred payment of the insurance premium, deferred contributions should be paid at the latest on the maturities specified in the insurance policy. In case of non-payment of a deferred contribution under the insurance contract, the insurer has the right to reduce the insured amount in proportion to the unpaid part of the premium, to amend the insurance contract or to terminate it, but not earlier than fifteen days after notifying the insured in writing to fulfill his obligation to pay the deferred installment, as well as the consequence The consequences of failure.

The form of the insurance contract is the insurance policy, accompanied by the statement of the insured, all annexes to it, general conditions, addenda and special conditions, as well as accounts for the paid insurance premium, which are an integral part of the insurance contract.

The insurance contract is concluded based on a proposal-questionnaire filled out by the applicant for insurance according to the model of the insurer, which indicates all known and relevant to the risk circumstances for the insured vehicle.

At the conclusion of the insurance contract, the motor vehicle must be technically in good condition. The insurer may refuse to take out the insurance if the vehicle is in poor technical condition. Insurers may also set additional conditions and requirements to cover the “Theft” risk.

The insurance amount is the amount for which the vehicle is insured. It is the upper limit of the insurer's liability and cannot exceed its insurance value. The insurance value is the actual value of the vehicle at the time of the conclusion of the insurance. The value for which, instead of the insured vehicle, another of the same type and quality can be purchased is considered real. When the vehicle is in new condition (newly purchased), the invoice value is taken as the actual value. Additionally installed parts and details (improvements) permitted by law are insured with their express nominal and value notation. Insurers require that the total insurance amount of the additional equipment, after the manufacture of the vehicle, be added to the insurance amount of the vehicle and may not exceed a percentage determined by the insurer.

The insurer indemnifies the insured up to the amount of damage from the insured event that has occurred, but not more than the insured amount. When determining insurance compensation, damage to the insured vehicle that does not correspond to the mechanism of causing the insured event, established by the submitted documents, is not recognized. The insurer, at its choice, can pay insurance compensation according to an expert assessment or issue a letter of assignment, by which it undertakes to pay wages to a service with which it has a contract, for the elimination of damage. In cases where compensation is determined by expert assessment, the prices of parts, labor and materials applied by the insurer on the day of occurrence of the insured event shall apply. Compensation can also be determined on the basis of a submitted invoice for the repair of the vehicle by the insured, but only after the written consent of the insurer.

In the event of a deferred insurance premium and an insured event that has occurred, the insurer issues an assignment letter only after the insured has paid all the contributions due. Upon payment of the compensation due according to an expert assessment, the insurer may withhold the contributions due from the compensation due. The amount of compensation also includes all expenses reasonably incurred by the insured in order to save, limit or reduce the damage to the insured vehicle, as well as the costs of transporting the vehicle from the place of the insured event to the nearest place of repair or residence when it is not in motion. Coverage of these costs is limited to a certain percentage of the sum insured.

In the case of partial damage, the amount of compensation is determined on the basis of the assessment of the damage. The insurer declares total damage to a motor vehicle when the value of the cost of the required repair exceeds a certain percentage of its actual value.

All disputes between the insured and the insurer are settled by mutual agreement. In case of non-agreement between the parties, disputes are resolved through the courts. Applicable law is the law of the country of the insurer. All rights arising from this insurance are repaid at the expiration of 3 years from the date of the insured event. By paying the insurance compensation and the costs of determining it, the insurer enters into the rights of the insured against the cause of the damage. The refusal of the insured of his rights against the cause of the damage has no force against the insurer for and in the exercise of his rights of recourse.