The Fund for Uninsured Motor Vehicles is established and managed by the Guarantee Fund in accordance with the Insurance Code and other applicable regulations.
The purpose of the fund is to protect the interests of citizens injured in road accidents which are the fault of unidentified motor vehicles and those without compulsory motor third party liability insurance or accident insurance for public transport passengers.
Through its operations, it guarantees the right of the injured parties to receive compensation for the damages suffered in a road accident, despite the absence of an insurer of the guilty party.
І. In what cases does the Guarantee Fund pay compensation to the injured persons out of the Fund for Uninsured Motor Vehicles?
- In the event of a road accident caused by an unidentified motor vehicle within the territory of Bulgaria
- In these cases, compensation is paid for material and non-material damages resulting from death or bodily injury.
- Compensation for material damage is paid only in the event of death or significant bodily injury resulting in hospitalization or death. In this case, the Guarantee Fund also pays compensation for damages exceeding BGN 500 and caused to the property of all persons.
- In the event of an accident caused by an uninsured motor vehicle with Bulgarian registration, which occurred on the territory of Bulgaria, in one of the Member States or in a third country participating in the Multilateral Agreement
- In these cases, compensation is paid for material and non-material damages resulting from death or bodily injury and damages to another person's property.
- In the event of an accident caused by an uninsured motor vehicle imported into Bulgaria from another Member State and not formally registered in the country. The condition is that the accident occurs within 30 days of the acceptance of the motor vehicle by the new owner.
- In these cases, compensation is paid for material and non-material damages resulting from death or bodily injury and damages to another person's property.
- In the event of a road accident in Bulgaria, which is caused by a motor vehicle, which is usually based in a third country and for which there is no border insurance or Green Card certificate.
- In these cases, compensation is paid for material and non-material damages resulting from death or bodily injury and damages to another person's property.
- In the event of a road accident in Bulgaria, which is caused by a motor vehicle, that has been taken away through robbery, theft or another crime.
- In these cases, compensation is paid for material and non-material damages resulting from death or bodily injury and damages to the property of the injured parties in excess of BGN 400.
- No compensation shall be paid for damages suffered by a person who voluntarily traveled in a motor vehicle which they knew to have been acquired through theft, robbery or crime.
The Guarantee Fund also pays indemnities under the compulsory accident insurance for passengers if the carrier did not have such insurance.
ІІ. How is the Fund for Uninsured Motor Vehicles financed?
The funds in the Fund for Uninsured Vehicles are raised mainly from contributions from insurers. All companies that sell Third Party Liability Insurance to motorists, incl. border insurance and accident insurance for public transport passengers. The amount of the contribution per policy is determined each year by the Financial Supervision Commission based on a proposal by the Guarantee Fund Board. Thus, in practice, all insured persons make contributions to the Fund through their insurer.
In 2023, the installment remains at BGN 12.50 for each Motor Third Party Liability policy. The contribution under the accident insurance for public transport passengers is BGN 0.15 for each seat excluding the driver's seat.
Other sources of financing may be income from receivables from recourse claims, income from investing the fund's resources and others, as described in the Insurance Code
The Guarantee Fund is actively working to reduce the number of uninsured drivers. Every such driver is sent a notification for lack of insurance and a reminder of the consequences of this, including the subsequent termination of the registration of the uninsured motor vehicle by the competent authorities of the Ministry of Interior.
ІІІ. What is the procedure for payment of compensations from the Fund for Uninsured Vehicles?
A person who is injured in a road accident with an uninsured or unidentified motor vehicle may file a claim for compensation with the Guarantee Fund. This can be filed with any insurer offering compulsory insurance. The Insurer submits all documents on the filed claim to the Guarantee Fund within 7 days from its filing.
- The claim before the Guarantee Fund is filed in writing. A notification form is completed and attached with all the documents described in the section "Procedure for settling claims".
- Complete and accurate data need to be provided about the bank account to which the payments are to be made – a certificate or another document containing these data.
- In case the payment from the Guarantee Fund to an injured person is made through a proxy, a notarized power of attorney needs to be presented. It must explicitly state that the injured party has been informed that they are entitled to receive payment in person. When making a compensation payment, the Guarantee Fund notifies the injured party in writing, indicating the amount.
- In the event that compensation is paid for total loss of a motor vehicle, the Guarantee Fund requires the injured party to submit a document from the competent authorities that the vehicle has been deregistered due to total loss.
Within three months from the filing of the claim, the Guarantee Fund issues a decision determining the amount of compensation or refuses payment when there are no grounds for payment or when the evidence presented is not sufficient to establish the basis or amount of compensation.