1. Page 1 IIF 2013 – Motor insurance-the road towards profitability MTPL Moral Claims in Bulgaria Roumen Galabinov March 4, 2013, Pera Palace Hotel, Istanbul, Turkey

2. Page 2 Limits From 11 June 2012 the minimum insurance sums for each insurance event are: For non-material damage resulting in from bodily injury or death: A) 2 000 000 BGN (approx. 1 000 000 EUR) in case of one injured person; B) 10 000 000 BGN (approx. 5 000 000 EUR) in case of two or more injured persons;

3. Page 3 Compensations Monetary compensation is due for non-material damages which are estimated. Various factors can be taken into consideration. For bodily injury such are the type and extent of bodily injury, period of medical treatment, period of experiencing pain, age of the victim, temporary and/or permanent disability, incapability to experience the same lifestyle as before the accident, etc. In case of death only certain categories of persons are entitled to claim for compensation for suffering from the loss of the loved one: spouse, children and parents (including in case of adoption), non- spouse who had permanently lived with the victim in a joint household without marriage. In order to claim for compensation, really close and warm relationship with the deceased must have existed, parental relation is not enough if the parent did not take care of the child.

4. Page 4 Compensations Pain and Suffering Out-of-court settlement: compensation is estimated by an experts’ commission of the Insurer. Court settlement: compensation is granted according to judge’s concept of what is fair. Court decisions which are not judged directly against the Insurer are not binding, except for criminal verdicts in terms of fault.

5. Page 5 Compensations Nursing and Care Costs All costs for nursing and care that are proved to be a direct and inevitable consequence of the accident are refundable. Compensation in Case of Death of the Victim Non-material compensation: monetary compensation for suffering from the loss is due to spouse, children, parents and non-spouse who had permanently lived with the victim in a joint household without marriage. Material compensation: funeral expenses, loss of maintenance

6. Page 6 Compensations Costs of Medical Treatment All costs for medicines, medical materials and procedures, extra or special nutrition needs that are proved to be a direct and inevitable consequence of the accident are refundable. Limitation Period The limitation period is 5 years from the date of the accident.

7. Page 7 Insurance amount, Average loss amount and Average premium in 10 years period Year20022003200420052006200720082009201020112012 Insurance amount, BGN 60 000100 000200 000400 000700 000 1 000 000 2 000 000 Per person More persons 100 000150 000240 000480 0001 000 000 5 000 000 10 000 000 Average loss amount, BGN Per person9409519649911 0901 4161 7231 7571 7641 7971 898 More persons14 36815 79018 91220 60027 38731 84834 54832 11828 17230 67432 657 Average Premium, BGN8899105131124127144167204213229

8. Page 8 Share of Occurred and Paid Claims in 10 years period Year after the claim 012345678910 Share of occured claims62.96%27.45%5.54%2.01%1.03%0.75%0.09%0.04%0.12%0.00% Share of paid claims38.89%32.51%13.19%6.12%3.66%2.64%1.09%0.74%0.53%0.27%0.36%

9. Page 9 Average amount of Claims Occurred in 10 years period Average amount of Moral Claims Occurred, BGN Year012345678910 20019 19212 19312 14412 70713 14713 39113 56113 66413 665 13 651 200212 93712 44613 64913 84113 99714 49114 63414 69714 71414 69714 682 200310 00612 23812 53512 79313 59813 97014 03814 07714 13314 12314 108 200413 26515 64816 08917 19717 75618 46318 71619 06619 10919 09619 076 200514 40215 61617 44118 16118 88219 72419 78619 99920 04520 03120 010 200612 97620 57223 20123 82624 25425 40225 61225 88825 94725 92925 902 200715 69323 92326 18126 84627 31928 37228 60728 91528 98228 96128 931 200821 72025 91528 04128 92629 59830 73830 99331 32731 39931 37631 344 200919 12021 46422 68623 32023 86124 78124 98625 25525 31325 29525 269 201013 07217 90119 23619 77320 23221 01121 18521 41321 46321 44721 425 201117 80122 62224 30824 98725 56726 55226 77227 06027 12227 10327 075

10. Page 10 Average amount of Claims Paid in 10 years period Average amount of Moral Claims Paid, BGN Year012345678910 20012 3566 7868 30310 56411 11711 44911 30212 19412 53512 66913 122 20024 0387 6649 20610 49711 66312 59212 85213 40713 71713 87214 368 20034 5486 4618 0018 61011 25611 67412 07812 59513 16713 31413 790 20042 7486 8288 80010 69712 53913 75016 65517 45618 05818 25918 912 20054 0127 95711 15214 03816 08917 65018 11819 01419 67019 88920 600 20064 23110 17514 34118 03320 85922 48824 08725 27826 15026 44227 387 20075 20111 65616 19421 36024 28426 15028 01029 39530 40930 74931 848 20085 87614 00918 40622 76526 34228 36730 38431 88732 98733 35534 548 20095 29311 64416 94621 16424 49026 37228 24829 64530 66831 01032 118 20104 03310 87314 86418 56421 48123 13224 77826 00326 90027 20028 172 20115 11811 83816 18420 21223 38925 18626 97828 31129 28829 61530 674

11. Page 11. Thank you!