The Introduction of the Euro and Insurance Services: Questions and Answers

With the introduction of the euro as the official currency in Bulgaria, changes will occur in the way monetary amounts are displayed in insurance documents. It is important to know that these changes will not negatively affect the prices of insurance services.

Insurers have adopted clear rules to ensure that the conversion from leva to euro will be carried out accurately and transparently, without additional costs or changes to your financial obligations.

During the transition period to the euro, additional consumer protection measures will also be applied—such as displaying prices in both leva and euro to facilitate understanding and ensure full transparency.

In this material, you will find answers to the most frequently asked questions that will help you understand what to expect and how your rights are protected.

Will the prices of insurance services increase with the introduction of the euro?

No. The conversion from the Bulgarian lev to the euro in itself will not lead to an increase in the prices of insurance services. Insurers have adopted and will follow clear rules regarding the conversion process to ensure that consumers' interests are fully protected.

Do I need to sign a new insurance contract because of the currency change?

No. The introduction of the euro does not affect the validity of your existing insurance contracts. They will remain in force under the same conditions, with the only change being that the amounts will be calculated and indicated in euro instead of Bulgarian leva. The conversion will be carried out automatically by the insurer, without the need for you to sign a new contract or an annex to an existing one, or to take any additional action.

How will the prices of insurance services and other amounts under insurance contracts be recalculated?

The recalculation (conversion) will be done automatically using the official exchange rate. Amounts will be rounded to the second decimal place in accordance with standard mathematical rounding rules.

What does dual price display mean and why is it applied?

Dual price display means that for a certain period, all prices of goods and services will be shown simultaneously in both Bulgarian leva and euro. This period begins one month after the date of the decision to adopt the euro and ends 12 months after the official introduction of the euro. The purpose is to facilitate the transition to the new currency and to help consumers easily compare prices and monitor whether the conversion has been carried out correctly, without changes to the terms.

What will be displayed in both leva and euro for insurance services?

For insurance services, the following will be displayed in both Bulgarian leva and euro:

• The total final amount under the insurance contract – the amount you are required to pay;
• The instalments in case of payment by installments, including in notifications regarding the amount of instalments due during the period, regardless of the date the insurance contract was concluded;
• The prices of other additional insurance services, if such are offered by the insurer.

This information must be presented clearly and understandably – both in the insurer’s offices and on their website, as well as upon your request in paper form or another durable medium.

Are there any amounts related to insurance services for which dual display in leva and euro is not mandatory?

Yes. The following amounts are not subject to mandatory dual display: Taxes and fees charged; Contributions to the Guarantee Fund; Other converted monetary values that are not part of the price of the insurance service and for which the consumer receives information from the insurer:

• prior to the conclusion of the insurance contract, and/or
• at the time of concluding the contract, and/or
• in connection with the settlement of claims for damages and compensations under the insurance policy.

What should proper dual price display look like?

In dual price display, the amounts in euro and in Bulgarian leva must be placed next to each other and written clearly, legibly, unambiguously, and in an easily understandable way. They must be shown in the same font size and in a manner that does not mislead consumers. Each amount must be accompanied by the respective currency designation, symbol, or abbreviation that allows for easy identification.

Will I see the dual price display on the payment document?

Yes. During the dual display period, the total final price of the insurance service must be indicated in both euro and leva on the issued fiscal receipt or any other document that records the payment, along with the official exchange rate from leva to euro.

How will prices be communicated in audio and video advertisements?

During the dual display period, in audio and video commercial messages and advertisements, the prices of insurance services can be stated orally only in leva up to the date of the euro introduction, and after that date – only in euro.

What does the dual circulation period of the euro and leva mean?

The dual circulation period is the first month after the official introduction of the euro in Bulgaria, during which both the lev and the euro will be used simultaneously as legal means of payment. During this transitional month, you will be able to pay in cash using either leva or euro. After this period ends, the only legal tender will be the euro.

Will I be able to pay in leva after the introduction of the euro?

Yes. For one month after the introduction of the euro, leva will continue to be legal tender in Bulgaria. During this period, you can pay in cash either in leva or in euro when paying for insurance services.

How will change be given when paying in cash during the dual circulation period of the euro and leva?

When paying in cash in leva or euro during the first month after the introduction of the euro, the insurer must give your change entirely in euros.

If the staff member does not have enough euros available, the change can be given entirely in leva. Additionally, the insurer may refuse to accept more than 50 coins in leva, including stotinki (cents).

How will already paid amounts be refunded in case of insurance cancellation during the dual circulation period of the euro and leva?

In cases of termination of an insurance service or contract cancellation allowed by law during the dual circulation period, the insurer is obliged to refund the due amounts entirely in euros. If the refund is made in cash and there are not enough euros available, the amount will be refunded entirely in leva.

Can I request a statement for the old amounts in leva?

Yes. Within one year from the date of the euro introduction, you have the right to request a statement of the amounts in leva related to your insurance contracts. This statement will be provided to you free of charge by the insurer within 7 days of your request.

Are the rules for handling claims and compensations changing?

No. The introduction of the euro does not change the procedures and conditions for handling claims and paying compensations under your insurance policies. The only change is that amounts will now be stated and paid in euros instead of leva. All other terms of your insurance contracts remain the same.

Your rights and interests are protected!

Insurers are obliged to provide you with complete, clear, and accessible information throughout the entire transition period during the introduction of the euro. If you have any questions, do not hesitate to contact your insurer for assistance and information.

SUMMARY – SHORT VERSION

When the euro is introduced, your rights and interests as a consumer are protected. Here’s what you need to know:

• The introduction of the euro will not change your existing insurance contracts or increase service prices. The transition is organized to be fully transparent, clear, and convenient for you.
• All prices and amounts related to your insurance will be recalculated transparently and fairly, with no hidden increases.
• Your existing insurance contracts remain valid — there is no need to sign annexes, agreements, new contracts, or pay additional fees.
• All amounts will be automatically converted into euros at the official exchange rate, with no changes to your financial terms. Bulgarian insurers have adopted clear rules to ensure that the conversion from leva to euro will not put you at a disadvantage.
• Prices will be shown simultaneously in leva and euros for 12 months, so you can easily understand and be sure there is no change in the service value.
• The rules for handling claims and compensations remain unchanged — the only difference is the currency of payment.
• You can request a free statement of the old amounts in leva up to one year after the euro introduction — it will be provided within 7 days.

This material has been specially prepared by the Communications Working Group of ABZ.