Insurers will have to offer motor third-party liability cover for periods of less than a year, but not shorter than 30 days, for motorbikes, campervans and several other types of vehicle. A parliamentary committee on economic policy, investment and industry backed the change.

MPs approved the changes to the Insurance Code at second reading. They also affect the Guarantee Fund. Stefan Belchev of Progressive Bulgaria and a group of MPs tabled the proposals on short policies between the first and second readings.

The rule covers vehicles with temporary or transit registration while it is valid, slow-moving road vehicles, self-propelled machines, caravan trailers and campervans. It also covers category L motor vehicles under the Road Traffic Act, which include motorbikes.

Martin Dimitrov of Democratic Bulgaria asked whether insurers are ready to offer such policies. Plamen Danailov, deputy chair of the Financial Supervision Commission (FSC), who heads its insurance supervision department, replied. Danailov said all insurers must meet the requirement on the day the changes appear in the State Gazette. Any that fail to do so will be held responsible and fined. He added that the companies already knew about the coming changes. The FSC will send them a letter setting out the new requirements.

The FSC will be able to decide on its own how to raise money when the Guarantee Fund's funds run short. Until now it could do this only on a proposal from the fund's management board. The aim is to act faster when extra funding is needed.

Insurers' contributions are split into advance and additional payments, and the basis for calculating the advance ones is made clearer. The FSC will also be able to set a different deadline for returning advance payments that were overpaid.

When an insurer loses its licence, the Guarantee Fund will be able to pay through the Security Fund instead of the National Bureau of Bulgarian Motor Insurers. The payments cover compensation for damage, interest, the costs of insurance claims and certain fees. They must be made within seven days of notification.

The changes to the fund's rules spell out how the money in the funds it manages is raised and run. They aim to improve liquidity and the ability to pay. They also make the Guarantee Fund's work with similar bodies, national bureaus and compensation bodies in other EU countries more effective.