Dear Insurance Users,
In accordance with the principles of consumer protection, awareness, efficiency and cost-effectiveness, transparency, continuity and automatic conversion of amounts from BGN to EUR established in the Law on the Adoption of the Euro, we inform you of the following:
Pursuant to Art. 2 of Council Regulation (EC) No 974/98 of 3 May 1998 on the introduction of the euro, as of the date of introduction of the euro in the Republic of Bulgaria, the currency of the Republic of Bulgaria is the euro. The monetary unit is one euro. One euro is divided into one hundred cents.
The official exchange rate of the lev to the euro is the irrevocably fixed exchange rate of the lev to the euro, laid down in a Council Regulation adopted in accordance with Art. 140(3) of the Treaty on the Functioning of the European Union.
The date of introduction of the euro in the Republic of Bulgaria is the date specified in the Council Decision of the European Union on the adoption of the euro by the Republic of Bulgaria, adopted in accordance with Art. 140(2) of the Treaty on the Functioning of the European Union and the Council Regulation of the European Union adopted in accordance with Art. 140(3) of the Treaty on the Functioning of the European Union (Decision on the adoption of the euro).
In accordance with Art. 6-9 of Regulation (EC) No 974/98, the values indicated in levs in existing legal instruments shall be considered as values in euro when applying the official exchange rate and the conversion rules under Art. 12 and the respective rounding rules under Art. 13, or under the special rounding rules provided for in the Law on the Adoption of the Euro.
In accordance with Art. 12 of the Law on the Introduction of the Euro and in accordance with Art. 4 of Regulation EC No 1103/97, the conversion from levs to euro shall be carried out by dividing the numerical value in levs by the full numerical value of the official exchange rate, expressed in six digits with all five decimal places. The official exchange rate shall not be rounded or truncated when performing the conversion.
In accordance with Art. 13 of the Law on the Introduction of the Euro and Art. 4 and Art. 5 of Regulation (EC) No 1103/97, after conversion in accordance with Art. 12, the resulting amount shall be rounded to the second decimal place on the basis of the third decimal place in accordance with the following mathematical rounding rule:
- where the third decimal place is less than five, the second decimal place shall remain unchanged;
- where the third decimal place is equal to or greater than five, the second decimal place shall be increased by one unit.
The prices of all goods and services offered to consumers shall be indicated in euro and in levs for a period of 12 months, starting one month after the date of entry into force of the Decision on the adoption of the euro and ending 12 months after the date of introduction of the euro in the Republic of Bulgaria. During the specified period, the abovementioned rules for conversion and respective rounding shall apply to prices in euro.
As an Insurance Broker, we double indicate in EUR and BGN:
- the total amount due by an insurer under an insurance contract concluded during this period, as well as the amount of the instalments in case of deferred payment of an insurance premium under such a contract;
- the notifications of the amount of instalments due during this period in case of deferred payment of an insurance premium under an insurance contract irrespective of the date of its conclusion.
We are obliged to provide you with the above information free of charge, including in writing, at your request, within 1 to 7 days, in accordance with the Law.