site.btaNational Ombudsman: Bonus-Malus System Violates Civil Rights

November 28 (BTA) - In a position to Financial
Supervision Commission head Karina Karaivanova, National
Ombudsman Maya Manolova says that the bonus-malus system to be
used in motor third party liability (MTPL) insurance rating
violates civil rights, the Ombudsman's office said Wednesday.
Her position was prompted by a draft ordinance currently open to
 public discussion that introduces the bonus-malus system and
links the insurance premium with a person's driving record.

One of the issues at the core of the debate is the fact that in
its current form, the proposed draft ordinance allows for
traffic violations committed while driving a certain car to be
factored in when calculating MTPL insurance premiums, regardless
 of who was driving it.
 
In her position, Manolova argues that the draft ordinance
violates citizens' rights and interests because it leaves the
impression that it gives precedence to the interests of
insurers. Under the Insurance Code, the compulsory MTPL
insurance covers a motor vehicle's owner and user. This means a
vehicle's insurance history cannot serve as the basis for
calculating the insurance premium under the bonus-malus system,
Manolova underscores. In her words, it is not right to hold the
owner of a vehicle responsible for the traffic violations
another driver has committed with this vehicle.

Manolova stresses the need for a mechanism under which insurers
will return within the shortest time possible the insurance
premiums they had charged wrongfully.

The National Ombudsman proposes a thorough assessment of the
consequences of the draft ordinance's adoption so as to find
fair mechanisms for applying the bonus-malus system.
LI/DS