site.btaCompetition Watchdog to Probe Insurers' Association over Spike in Taxi Drivers' Third Party Liability Premiums

The Commission for Protection of Competition (CPC) has entered the office of the Association of Bulgarian Insurers, CPC said Thursday. The Commission will look into a possible coordinated decision of insurance companies to raise the third party liability premiums for taxi drivers, which could potentially restrict or distort competition in the market for taxi services. The CPC will analyse the information and draw a conclusion on a possible cartel agreement and/or decisions adopted by associations of undertakings.

The Commission will conduct checks with the help of Interior Ministry officers after obtaining permission from the Administrative Court of Sofia Region.

During the inspection, documents and correspondence will be seized for detailed analysis, which will show if there is sufficient evidence to bring infringement claims.

The CPC acted on its own initiative after a series of protests of taxi drivers across the country. They claimed that insurance companies unexpectedly hiked the third party liability premium for taxi vehicles by between 300% and 1,000% in October.

On November 20, Krasimir Tsvetkov, chair of the association National Taxi Trade Union, told BTA taxi drivers demand a price cap on the price of compulsory third-party liability insurance until a clear legal mechanism is developed, through the Insurance Code, to introduce the bonus-malus system and assess risk based on each driver's insurance history.