ORDINANCE ON COMPULSORY INSURANCE OF WORKERS AND EMPLOYEES AGAINST RISKS OF ACCIDENTS AT WORK

ORDINANCE ON COMPULSORY INSURANCE OF WORKERS AND EMPLOYEES AGAINST RISKS OF ACCIDENTS AT WORK

Prom. SG. 15/17 Feb 2006, amend. SG. 68/22 Aug 2006, amend. SG. 46/12 Jun 2007

Chapter one.
GENERAL PROVISIONS

Art. 1. This Ordinance sets out the terms and the procedures for compulsory insurance against risks of accidents at work of workers and employees, carrying out work that might be dangerous to their life and health.

 

 

Art. 2. (1) Subject to compulsory insurance shall be workers and employees, carrying out work as principal and subsidiary activity of undertakings performing economic activity with a level of occupational traumatism that is equal to or higher than the average level in the state.

(2) (amend. - SG 46/07, in force from 12.06.2007) Shall not be subject to compulsory insurance pursuant to this ordinance workers and employees who are insured on another ground against the risk of accident, including the military servicemen under the Law of Defence and Armed Forces of the Republic of Bulgaria and the employees of the Ministry of Interior and of Chief Directorate "Civil Protection National Service".

 

 

Art. 3. (1) All costs for compulsory insurance of workers and employees against risks of accidents at work shall be at the expense of employers.

(2) Compulsory insurance contracts as per Art. 1 shall only be concluded with an insurer who has authorization to carry out activity referred to in item 1, Section II of Appendix No 1 of the Insurance Code.

 

Chapter two.
SCOPE OF INSURANCE AGAINST RISKS OF ACCIDENTS AT WORK

Art. 4. (1) (suppl. - SG 68/06) Workers and employees who are subject to compulsory insurance against risks of accidents at work shall be specified by a written order of the employer following consultations with the occupational medicine office and the labour conditions committee/group according to the risk assessment. Consultations shall be verified by written statement.

(2) By way of collective employment contract may be specified workers and employees who shall be insured against risks of accidents at work, other than the ones listed in the order, in case the necessity thereof has been proved and risk has been materialized.

(3) The business activity of the undertaking shall be specified according to the National classification of business activities.

(4) Occupational traumatism shall be assessed by occupational traumatism rate on the basis of statistical information about accidents at work by business activities for a period of three years, preceding the year during which the calculations are being made. The information must contain final data for each calendar year from the information system for accidents at work of the National Social Security Institute.

(5) The data for each period shall be calculated as arithmetical average.

 

 

Art. 5. Occupational traumatism rate for the state (OTRS) shall be calculated as arithmetical average of the average frequency rate (AFR) and the average of gravity rate (AGR) of accidents at work in the state. The rate shall be calculated by the following formula:

 

 

AFR + AGR

OTRS =

----------------- ,

 

2

where:

AFR is an arithmetical average of the frequency rates of the accidents at work for the state (FRS) for a period of three years, and "t" stands for the respective year of the period:

 

FRSt1 + FRSt2 + FRSt3

FRS =

------------------------------- .

 

3

AGR is an arithmetical average of the gravity rates of accidents at work in the state (GRS) for a period of three years, and "t" stands for the respective year of the period. When calculating the gravity rate of accidents at work in the state for the respective year (GRSt) of the period, to the number of days lost due to accidents at work shall be added 7500 days per each accident at work which has lead to death and 3000 days per each accident at work which has lead to disability:

 

GRSt1 + GRSt2 + GRSt3

GRS =

------------------------------ .

 

3

 

 

 

 

Art. 6. Occupational traumatism rate for the respective business activity (OTRBA) shall be calculated as an arithmetical average of the frequency rate (FRBA) and the average of gravity rate (GRBA) of accidents at work for business activity:

 

 

FRBA + GRBA

OTRBA =

-------------- ,

 

2

where:

FRBA is an arithmetical average of the frequency rates of the accidents at work regarding the business activity for the three-year period, and "t" stands for the respective year of the period:

 

FRBAt1 + FRBAt2 + FRBAt3

FRBA =

---------------------------- .

 

3

GRBA is an arithmetical average of the gravity rates of accidents at work regarding the business activity for the three-year period, and "t" stands for the respective year of the period. When calculating the gravity rate of accidents at work regarding the business activity for the respective year (GRSt) of the period, to the number of days lost due to accidents at work shall be added 7500 days per each accident at work which has lead to death and 3000 days per each accident at work which has lead to disability:

 

GRBAt1 + GBAt2 + GBAt3

GRBA =

---------------------------- .

 

3

 

Chapter three.
COVERED INSURANCE RISKS AND INSURANCE SUMS

Art. 7. (1) Compulsory insurance for accidents at work covers the following risks:

1. death of the insured person occurred as a result of accident at work;

2. permanently reduced capacity to work as a result of occupational accident;

3. temporary incapacity to work because of accident at work.

(2) Temporary incapacity to work and the level of the permanently reduced capacity to work shall be certified by patent's card and expert decisions, issued by the respective authority competent to decide on medical expert statements and ability to work.

 

 

Art. 8. (1) The insurance sums under accidents at work insurance shall be determined on the basis of the monthly gross remuneration of the insured workers and employees by the moment of concluding the insurance contract.

(2) (amend. - SG 68/06) Insurance sums may not be less than the 7-fold amount of the annual gross remuneration of the respective worker or employee.

 

Chapter four.
INSURANCE INDEMNIFICATIONS

Art. 9. (1) In case an insured person passes away, insurers shall pay indemnification amounting to the insurance sum designated for the respective worker or employee calculated according to Art. 8, para 2 at concluding the insurance contract.

(2) In case of permanently reduced capacity to work, indemnifications shall be a percentage of the insurance sum designated for the respective worker or employee, equal to the percentage of permanently reduced capacity to work of the worker or employee, ascertained by the respective authority competent to decide on medical expert statements and ability to work.

(3) In case temporary incapacity to work has been ascertained, a percent of the monthly gross remuneration of the worker or employee by the moment the insurance contract is concluded shall be paid, depending on the durability of the temporary incapacity to work.

 

1.

over 10 up to 30 calendar days

 

 

inclusive

- 3 %;

2.

over 30 up to 60 calendar days

 

 

inclusive

- 5 %;

3.

over 60 up to 120 calendar days

 

 

inclusive

- 7 %;

4.

over 121 calendar days

- 10 %.

(4) The percentage of permanently reduced capacity to work shall be ascertained by the respective authority competent to decide on medical expert statements and ability to work according to the Ordinance on Medical Expert Statements and Ability to Work, adopted by с Decree No 99 of the Council of Ministers from 2005 (prom. SG 47/05; amend. – SG 96/05) in three-months term from submission of the required documents.

(5) In those cases where a percentage of permanently reduced capacity to work of the insured person has been ascertained before the accident at work occurs, the said percentage shall not be taken into account when calculating the percentage of permanently reduced capacity to work as a result of the accident.

(6) In case an indemnification for temporary incapacity to work resulting from occupational accident has been paid and subsequently the said incapacity develops into permanently reduced capacity to work of the insured person within one year from the date on which the accident has occurred, the insurance indemnification or sum due for permanently reduced capacity to work shall be reduced by the amount of the indemnification for temporary incapacity to work, which has already been paid up.

(7) In case an indemnification for temporary incapacity and/or permanently reduced capacity to work as a result of accident at work has been paid and the insured person subsequently passes away within one year from the date on which the accident has occurred, the insurance indemnification or sum due for death shall be reduced by the amount of the indemnifications, which have already been paid up.

 

 

Art. 10. (1) The insurance indemnification or sum due shall be paid up to the insured person, and in case the latter has passed away – to his/her legal heirs.

(2) In case the insured person, respectively his/her legal heirs, have not reached full age or are under judicial disability, the insurance indemnification shall be deposited to their account in a commercial bank authorised by Bulgarian National Bank to carry out banking activity, provided that the insurer informs them in writing thereof.

 

 

Art. 11. In order insurance sum or insurance indemnification to be paid up, the following documents shall be presented:

1. written request;

2. copy of the insurance contract;

3. copy of the death certificate and legal heir certificate;

4. copy of the documents certifying temporary incapacity to work (patent's card, expert decision of the Medical Expert Commission on Employment Matters/ National Expert Commission on Employment Matters);

5. order of the respective territorial unit of the National Social Security Institute that the accident is considered occupational;

6. other documents of importance for the insurance sum or indemnification.

 

 

Art. 12. The insurance indemnification or sum due under compulsory insurances for accidents at work shall be paid in 15-day term provided that all documents specified in the contract have been submitted.

 

 

Art. 13. Rights under a contract for compulsory insurance for accidents at work shall expire by limitation at the end of five-year period from the date on which the insurance event has occurred.

 

Chapter five.
INSURANCE PREMIUM

Art. 14. (1) Insurance premiums under compulsory insurance for accidents at work shall be annual or monthly depending on the term of the employment legal relations between the worker or employee and the employer.

(2) Insurance premiums as per para 1 may be divided into monthly, three-month or six-month installments and may also be stretched out according to other schemes, agreed between the parties.

 

 

Art. 15. The exact amounts of insurance premiums shall be specified in the insurance contracts.

 

Chapter six.
TERM AND CONCLUDING OF INSURANCE CONTRACTS

Art. 16. (1) Compulsory insurance contracts for accidents at work shall be concluded by employers and insurers or persons authorised by them for each calendar year.

(2) The term of such contract may not exceed 12 months and shall not be less than one month.

 

Chapter seven.
LIABILITY OF THE INSURER

Art. 17. Insurers shall be liable for damage caused to health of workers and employees in case of accident at work up to the amount of the insurance sum fixed in the insurance contract.

 

Additional provisions

§ 1. Within the meaning of the present ordinance:

1. "Accident at work" is the legal term as per Art. 55, para 1 of the Code of Social Insurance.

2. "Frequency rate" is the rate calculated according to Art. 17, para 1, item 1 of the Ordinance for the Establishment, Investigation, Registration and Account of Labour Accidents, adopted by Decree No 263 of the Council of Ministers of 1999 (prom. - SG 6/00; amend. And suppl. - SG 61/00 and SG 19/02).

3. "Gravity rate" is the rate calculated according to Art. 17, para 1, item 3 1 of the Ordinance for the Establishment, Investigation, Registration and Account of Labour Accidents, adopted by Decree No 263 of the Council of Ministers of 1999.

4. "Insurance sum" the legal term as per § 1, item 5 of the Additional provisions of the Insurance Code.

5. "Insurance indemnification" is the sum, which shall be paid by the insurer in case a risk covered by an accident at work insurance has been materialized.

 

Concluding provisions

§ 2. General Labour Inspectorate Executive Agency shall exercise control over the fulfillment of the obligations of employers under this Ordinance.

 

 

§ 3. The present ordinance is adopted on the ground of Art. 52, para. 1 of the Law for Healthy and Safe Labour Conditions.

 

Concluding provisions
TO DECREE NO 123 OF 1 JUNE 2007 FOR AMENDMENT OF LEGISLATION ACTS OF THE COUNCIL OF MINISTERS

(PROM. - SG 46/07, IN FORCE FROM 12.06.2007)

 

§ 16. The decree shall enter into force from the date of its promulgation in State Gazette.

 

Last edited: 03.07.2018