Parliament has voted to obligate insurance companies to reimburse unproven damages in the event of traffic accidents abroad.
The decision was not supported by Vazrazhdane, the Bulgarian Socialist Party (BSP) abstained. This case could have proved to be an obstacle to Bulgaria’s entry into the Eurozone.
The so-called Green Card, which guarantees reimbursement of damages incurred in traffic accidents caused by vehicles registered in another country, is valid in 48 countries. The Green Card system operates, via national offices with local insurers as members, following the principle “pay first, contest later”. The problem emerged in Bulgaria when Bulgarian insurers contested the grounds for damage claims from abroad, accumulating debts running to EUR 10 million.
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