Insurance Claims Under Third-Party Liability Insurance – Why Lawyer Involvement from the Outset Matters

Road traffic accidents are one of the most common situations in which individuals find themselves needing legal assistance — often without knowing where to turn or what rights they have. Third-party liability insurance (known in Bulgaria as “Grazhdanska Otgovornost”) is the mandatory insurance that every motor vehicle owner is required to maintain. Understanding how to make an effective claim under this policy can make a decisive difference to the compensation you receive.

Who Can You Claim Against — and Who Pays?

If you are injured in a road accident caused by another driver, you have the right to bring a claim directly against the insurer of the at-fault vehicle. You do not need to pursue the driver personally. The insurer is obliged to pay compensation for the damages caused by the insured driver, up to the limits of the policy.

In certain circumstances — for example, where the at-fault vehicle is uninsured, unidentified, or where the insurer is insolvent — claims may be directed to the Guarantee Fund (Garantsionen fond), which serves as the insurer of last resort in these situations.

What Can a Claim Be Based On?

A claim under a third-party liability policy can cover two main categories of loss.

Non-pecuniary damages (неимуществени вреди) cover pain and suffering, physical and psychological distress, loss of enjoyment of life, and any other harm to the claimant’s wellbeing that cannot be directly measured in money. Bulgarian courts apply established case law when assessing such damages, but the amounts awarded can vary significantly depending on how the claim is presented and supported.

Pecuniary damages (имуществени вреди) cover all quantifiable financial losses resulting from the accident — medical treatment costs, rehabilitation, loss of earnings, costs of care, damage to personal property, and any other out-of-pocket expenses directly caused by the accident. These must be documented with invoices, receipts and other evidence.

The Mandatory Pre-Court Claim Stage

The Insurance Code provides for a mandatory pre-court claim procedure that applies to all third-party liability claims. This means that before a claimant can bring court proceedings against the insurer, they are required to submit a formal claim to the insurer and allow it the statutory period — currently three months — to respond.

This change is significant for several reasons. First, it creates a real opportunity to resolve the claim at an early stage, without the costs, delay and stress of court proceedings. Second, it means that the insurer must engage with the claim seriously — failure to respond or an inadequate response within the statutory period carries legal consequences for the insurer. Third, the quality and content of the initial claim directly affects the outcome: a well-constructed claim, supported by the right documentation and legal arguments, significantly increases the likelihood of a fair settlement at this stage.

Why Does Lawyer Involvement from the Outset Matter?

Many claimants approach insurers without legal assistance, submitting incomplete claims with insufficient supporting documentation. The result is frequently a low offer — or a rejection. By the time a lawyer is instructed, the damage has sometimes already been done: the claimant has made statements or accepted partial payments that complicate the subsequent legal position.

Involving a lawyer from the outset means that the claim is properly structured and documented from the very beginning. All relevant heads of loss are identified and evidenced. The legal arguments supporting the claim are clearly articulated. The insurer’s response is carefully reviewed, and any inadequate offer is challenged with a reasoned counter-position. In a significant number of cases, this approach achieves a result that fully or substantially satisfies the claimant — without ever reaching the court stage.

Where the insurer’s response is unsatisfactory, the pre-court record is also properly established for the purpose of any subsequent court proceedings, and the limitation periods and procedural requirements are correctly observed throughout.

What We Offer

We advise accident victims on their rights from the very first contact. We assist with the preparation and submission of the pre-court claim, the collection and organisation of all relevant medical and financial documentation, the assessment of both non-pecuniary and pecuniary damages, communication and negotiation with the insurer, and — where necessary — representation in court proceedings.

Conclusion

A road accident can have lasting physical, psychological and financial consequences. The compensation you are entitled to recover is determined not only by the facts of the accident, but also by how effectively your claim is presented and pursued. Early legal involvement is the best way to protect your interests — and in many cases, to achieve a fair result before any court proceedings become necessary.