NewsLocalBulgaria seeks help over Cyprus-based insurance collapse

Bulgaria seeks help over Cyprus-based insurance collapse

Bulgaria’s ombudsman Mayia Manalova has asked Cyprus’ Financial Commissioner Pavlos Ioannou to help resolve problems resulting from the closure of the Cyprus-based insurance company Olympic which has left 200,000 Bulgarians without car insurance

“Tens of thousands of our compatriots are in the situation where they have to pay the car insurance for the second time, even though they have already paid,” she said in a letter to Ioannou asking that he mediate.

Manalova said she was concerned over the lack of clarity as regards the payment of compensation in cases where an insurance company in one EU country operates in another.

Ioannou confirmed to Philenews that he had received the letter and said he was seeking legal advice as to the next steps.

Ioannou had already issued a decision on the company following a complaint from a client.

The issue is escalating in Bulgaria where the deputy head of insurance supervision resigned yesterday. The Bulgarian government has contacted the European Commission asking for its help to resolve the issue and had also discussed the issue with Cyprus’ ambassador in Sofia.

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