Settlement of claims for material damages

Settlement of compensation claims for material damages and payment of compensation under Motor Third Party Liability Insurance from the Fund for Uninsured Motor Vehicles

І. Filing a claim
ІІ. Written evidence (documents), which are enclosed with the application (notice) when claiming compensation
ІІІ. Evaluation of damages and determining the compensation amount
ІV. Decision on a claim and payment of compensation for material damages

І. Filing a claim

1. The injured person must submit a written application (notice) claiming compensation for material damage. The claim form is standardized and can be downloaded here.

2. The application (notice) must be accompanied by written evidence (supporting documents) about the road accident, the right of the injured person to receive compensation in connection with the event and the amount of damage caused.

3. 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.

4. The injured person may submit a application (notice), together with the written evidence:

• Personally
• Via proxy, in which case the application (notice), an original power-of-attorney must be enclosed, with a notarized certification of signature, if such a proxy is a person other than a lawyer. Where the application is filed by a lawyer, the provisions of Art. 25 of the Bulgarian Bar Act shall be applied. The power-of-attorney needs to specify the powers, assigned by the injured party to the attorney, to file claims for payment of material damages with the Guarantee Fund.

5. The application (notice), together with the written evidence may be submitted:

• Directly to the Guarantee Fund – at the Fund office or via registered mail with receipt acknowledgment.

       The Guarantee Fund address is: city of Sofia, PO box 1000, 2, Graf Ignatiev street, floor 4

       or

• To any insurer offering compulsory Motor Third Party Liability Insurance, respectively compulsory Accident Insurance for Passengers. The Insurer submits all documents on the filed claim to the Guarantee Fund within 7 days from its filing.

6. Filing the claim at the Guarantee Fund registry

• The application (notice) along with the list of all enclosed evidence are filed in a registry as per the internal regulations of the Guarantee Fund. Every claim so entered is certified by being assigned a registered entry number by the Guarantee Fund clerk and a Damage File (Liquidation Dossier) is opened under an individual number in the damage registry, relating to the application (notice) entry number.

ІІ. Written evidence (documents), which are enclosed with the application (notice) when claiming compensation

1. Documents certifying the occurrence of a road accident:

• A protocol of findings, a road accident protocol or a certificate issued by the authorities of the Ministry of Internal Affairs certifying the road accident occurrence, in the original. It is not mandatory to provide other evidence establishing the occurrence of the road accident.
• Bilateral protocol of findings for a road accident

2. Documents certifying the injured person’s right to be paid compensation in relation to the event:

• А copy of the registration certificate of the damaged motor vehicle
• A Certificate of Succession in the original – up-to-date as of the date at which the claim is filed in cases where the application (notice) is filed by an heir (heirs)
• A copy of a certified death certificate

3. Documents attesting to the amount of damages caused:

• A record of insurer’s survey where such survey is made in relation to a claim for any damaged property, certified by insurer’s signature and seal
• Photo evidence, documenting the damages and showing the damaged motor vehicle plate number and frame N (VIN number)
• The documents related to the repairs of the damaged property
• Certified copies of any effective decision where the amount of the material damages caused is determined by a judiciary authority and a damage evaluation expert opinion
• A writ of execution in the original

For the purposes of determining the compensation, other documents may be required to establish the circumstances of the road accident, the justification for payment and the amount of the damages.

ІІІ. Evaluation of damages and determining the compensation amount

• The compensation of any material damages suffered shall be determined by the Fund’s Management Board based on an evaluation of the damages according to the uniform methodology for settlement of compensation claims for damages caused to any motor vehicles as stipulated by Ordinance No. 49 of 16.10.2014 on the compulsory insurance.
• The damages are evaluated and the compensation amount is determined after the injured person submits all required documents needed to ascertain both the event and the damage amount no later than three months following the date of filing the claims.
• The amount of the compensation cannot exceed the minimum insured amount under the compulsory insurance as determined for the year when the road accident occurred and with respect to the other properties it is based on the rules for determining compensations for damages to property other than motor vehicles.

ІV. Decision on a claim and payment of compensation for material damages

• The Management Board of the Guarantee Fund issues a decision on filed claims within three months from the date of its submission.
• The injured person (or the person they have authorized) is notified in writing about the decision and its justification in connection with the claim.
• In case of certain compensation under the claim, the amount is transferred via bank transfer to the specified account of the injured person or to a person explicitly authorized for this purpose.The power of attorney must comply with the statutory provision of Article 558(6) of the Insurance Code.
• Before paying compensation, defined as total damage to a motor vehicle registered in the Republic of Bulgaria, a certificate from the competent registration authorities is required to terminate the registration of the motor vehicle due to the total damage.
• The Guarantee Fund may reject the claim to compensation when there are no grounds for payment or when the evidence presented is not sufficient to establish the basis or amount of compensation.