On focus
Second payment to injured parties under insurance contracts concluded through the Bulgarian branch of Olympic starts in February 2023
13 January 2023
The Guarantee Fund proceeds with a second payment of benefits under insurance contracts concluded through the Bulgarian branch of Olympic Insurance Company (in liquidation). These payments include the compensation due for material and non-material damages, based on a list of claims provided by the liquidators of Olympic Insurance Company. The procedure for payment is in accordance with the liquidation rules under Cypriot law, where the leading and primary role is played by the liquidators of Olympic Insurance Company, who accept the claims for payment, approve the amounts of compensation payable and include them in a list which they submit to the Bulgarian Guarantee Fund for payment. Outside the scope of payments remain the legal costs and interest in connection with the compensation due to the injured parties, as well as the Casco regressions of the car insurers against IC Olympic, branch Bulgaria. The reason is that, despite the contrary unambiguous legal position of the Bulgarian Guarantee Fund, the Cyprus Guarantee Fund does not recognise them as guaranteed and as a result there is no mechanism for their payment by the Guarantee Fund. The arguments of the Cypriot side are based on legal opinions of Bulgarian law firms.
The second stage of payments will take place at the beginning of February 2023 , after the completion of the organisational and administrative actions undertaken. The sums due will be transferred by the Guarantee Fund by bank transfer to the injured parties, to the bank accounts indicated by them in the liquidation proceedings of Olympic Insurance Company. In connection with the payments, the persons concerned should promptly notify the liquidators of Olympic Insurance Company of any changes in the circumstances declared to them relating to a change of bank account and/or proxies at tel. 02/902-09-00; 0877885038 or email officebg@olympicins.eu
The two rounds of payments satisfy a total of 332 claims against the Bulgarian branch of Olympic Insurance Company. The total value of the payments amounts to BGN 8 560 739. Cyprus Guarantee Fund has started to partially reimburse the payments made by the Bulgarian Guarantee Fund at the first round.
The process of payment of compensation to the injured parties will continue in the future. The dynamics of payments over time, the number of claims settled, the amount of compensation and other conditions depend on the activity of the liquidators of Olympic Insurance Company and their active communication with the persons claiming compensation due, as well as on the challenges made by the Cyprus Guarantee Fund and their legal resolution.
For its part, the Bulgarian Guarantee Fund will continue to protect the interests of the injured parties and to defend the payment of amounts due and other obligations.