Motor own damage insurance (CASCO)

This product has the biggest market share of the voluntary insurances.

Subject of the insurance:

Against an insurance premium paid, the Insurance company provides protection, covering the full lost or partial damage to motor vehicles /MV/, as well as covers the incurred additional expenses as a result of insured events in case of the occurrence of certain risks, stated in the policy’s General terms /Clauses/.

Subject of the insurance are all types of land motor vehicles (MV) (excluding rail motor vehicles) with own engine and the devices attached to them with Bulgarian registration plates. With additional agreement, subject to this insurance can become MV with foreign registration plates.

Requirements for entering in Casco policy:

• The Insurer has the right to request the MV to be equipped with alarm and/or immobilizer.
• The insured person must present the MV for inspection by the Insurer.

Territorial coverage:

The insurance is valid at the territory of Republic of Bulgaria and European Union state members and at the territory of the countries, members in the International agreement “Green Card”. Usually, the Insurers do not cover damages of the risks “Theft of the entire MV”, “Robbery of the entire MV”, when the event occurred at the territory of Russia, Ukraine, Moldova, Belarus, Albania, Bosnia and Herzegovina, Republic of Kosovo.

Covered risks

The Insurer covers the full loss or partial damage of the insured MV, caused by risks, conditionally grouped in the following clauses:

• Clause Minimum Casco
• Fire and/or explosion, occurred during the usage of the MV.
• Natural disasters – storm, hurricane, lightning, hail, heavy rain, sea waves, falling of snow mass or ice floes on the MV, falling of hard bodies and objects on the MV, flooding, falling trees and branches as a result of natural disasters;
• Clause Partial Casco
• Fire and/or explosion, occurred during the usage of the MV.
• Natural disasters – storm, hurricane, lightning, hail, heavy rain, sea waves, falling of snow mass or ice floes on the MV, falling of hard bodies and objects on the MV, flooding, falling trees and branches as a result of natural disasters;
• Malfunction of industrial or domestic water supply, sewage, gas supply, steam supply or electrical installations;
• Traffic accident, concerning collision or impact between MVs or with other movable or immovable objects, animals or people / in parked state/. Opening of MV bonnet or door during movement.

• Clause Theft and Burglary of entire MV
• Theft of the entire MV
• Burglary of the entire MV
• Clause Full Casco or All risks
• this clause covers all risks, caused by insured events, described in the above clauses as well as:
• Malicious actions of third persons – breaking, drilling, notching, scratching, pouring of paint or other chemicals;
• Burglary of permanently fixed audio equipment.

“Casco” insurance provides the opportunity for agreement of coverage of excluded risks or additional specific services. Usually, such covers are with additional premium charged. They cannot be concluded individually, but always as additions to a main clause, usually to the Clause All risks.

• Intentional arson or blasting;
• Expansion of the territorial coverage;
• Road assistance – the Insurer provides free road assistance in case of insured event or assistance after a traffic accident, or technical malfunction;
• Mechanical malfunction – damages, caused by sudden malfunctions of the engine, transmission and driving axle are covered;
• Assistance abroad.

Exceptions

Indemnity is not provided for damages, caused:

• by a driver of the insured MV, who does not have a driving license or the required category to drive the respective MV, or that license is not valid as to the date of the event;
• by a driver of the insured MV, who has used alcohol or other intoxicating substances, or when the driver refused to provide an alcohol sample after traffic accident, or was guilty of not providing alcohol sample;
• violation of the MV driver of the prohibitions of the Law on Road Traffic and/or not following the prescriptions of the competent authorities (movement on forbidden and signaled sections, roads, passages, movement without snow-chains or with trailers, when the latter is forbidden).
• theft or burglary of individual parts, details, assemblies;
• theft or burglary of accessories – tools, first-aid kit, fire extinguishers, jack, emergency triangle, spare tires, wheels and MV equipment;
• damages to goods or items, transported by the insured MV;
• theft of the tires and wheels of the MV;
• damage of the engine through ingress of water, mud and other in the cylinders;
• in case that the insured car did not have a valid document for performed annual technical inspection as per the time of the traffic accident;
• damage in parts and/or equipment of the insured MV as a result of operational reasons (wear or breakage of tires, burning of fuses, bulbs and alike) or non-compliance with the requirement of the normal operation of the MV (change of oil, anti-freeze, filters, tires and alike).

Insurance sum and real value:

The real value is determined by the Insurer, based on the year or manufacturing, equipment, technical state, mileage etc., according to the methods in force.

The insurance sum is the sum for which the MV is insured and which is stated on the insurance policy. It cannot exceed the actual value of the MV as to the date of the entering in the policy.

Each indemnity paid, as per partial damage, reduces the insurance sum, except for the cases with provided regression. In case of paid indemnity, the Insured person has the right and it is advisable to re-insure the MV up to the initially determined insurance sum by paying an additional premium. Otherwise, the Insurers apply the principle of under-insurance and reduce the indemnities for subsequent damages by a relevant percentage.

Insurance premium

The insurance premium is determined by the Insurer based on the covers, chosen by the insured person. The amount of the premium is determined based on tariff currently in force.

When a deferred payment of the premium is agreed and in case of occurrence of insured event, the unpaid deferred installments become required. The Insurer will pay the indemnity after the above installments are paid.

Insurance term: One year.

Relations in case of the occurrence of insurance event

The insured person must inform all competent authorities /police, fire brigade etc./. Within 24 hours from learning about the occurrence of Theft or Burglary, the insured individual must inform the Insurer. In case of the occurrence of other insured event, the time-frame for provision of information is 3 to 7 days.

Insurance indemnity

With partial damages, the Insurer determines the amount of the indemnity by one of the following methods:

• Based on expert assessment /determined as per methods of the Insurer/
• Based on presented documents for incurred expenses for the repair of the MV
• Repair in repair shop through assignment by the Insurer. The Insurer pays the value of the repair directly to the repair shop. Depending on the age of the MV, the repair shop can be the official one for the brand of the MV /usually for MVs at age up to 3 years/ or trusted one /for older MVs/.

In case that the amount of the insurance indemnity, determined by any of the above described methods exceeds 70% of the real value of the MV as to the date of the occurrence of the insured event, a total damage is present. In case of a total damage, the Insurer pays the insurance sum or the remainder of it, but not more than the real value of the MV, reduced by the value of the fit units, assemblies and details.

In case of theft or burglary of the entire MV, the Insurer pays the insurance sum or the remainder of it, but not more than the real value of the MV as to the moment of the occurrence of the event.