BiB Group

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                  GENERAL CONDITIONS OF INSURANCE OF PROPERTY


HOUSEHOLD PROPERTY+ INSURANCE GENERAL TERMS AND CONDITIONS


I. SUBJECT OF INSURANCE
Section I - Damages on Property
1.    These General Terms and Conditions shall apply to:
1.1.    Immovable properties (massive and semi-massive buildings along with the their inherent affixed built
in installations):

1.1.1.     Building or part of building property or in charge of the Insured, made of bricks, stone, slabs or
    concrete and covered with plates, tiles, metal, asphalt or concrete, destined for a dwelling, workshop,
    garage and other similar, including the built-in installations  (sewerage, water supply, electricity,
    heating, telephone etc.) and any other facilities and appurtenances that cannot be detached from the
    building without demolition or damaging. Upon the parties’ express written agreement under the
    insurance contract, the building may also include the appertaining fences, terraces, pools, courts and
    other similar.
The value of the building includes any components used for its construction and/or to extend its useful life. The building also includes: permanent linings or floorings on walls and floors; staircases permanently fixed to the building even if outdoor; wallpapers, tiles, floorings, ceiling and wall linings, heating installations, bathroom and WC furniture; glazing of the building, appertaining to premises, occupied by the Insured only; shutters; security systems; permanently fixed lightings and other similar installations;

1.2.     Contents     (movables) destined to be used in the private life of the Insured, members of his family or
    household,  like:  furnishings  and  furniture;  household,  electronic,  heating,  communication,
    refrigeration  equipment etc; television, video, audio and photo equipment; computer equipment;
    books; garments; music instruments; sporting equipment; special  purpose property;  third  party
    property.
1.2.1.    Garments, music instruments, sporting goods, special purpose property and third party property shall
be insured only against submitted inventory.

Section II - General Third Party  Liability
2.    The limit set in the Policy shall cover as follows:
2.1.    The Insured’s liability for material   and non-material   damages caused to third parties within the
effective term of insurance in or with reference to the use of the property insured under Section I, and
resulting from risks related to his routine everyday practices, except risks inherent to a specific
activity, practicing a craft, profession or position, or resulting from unusual or hazardous occupation;
2.2.    The costs that the Insured has made to limit the damages, provided that he has acted with due care,
even if his efforts have failed;
 






2.3.    Expert witness and witness costs on civil proceedings against the Insured, related to events covered
by the insurance.
II. INSURED RISKS (PERILS) AND SPECIAL EXCLUSIONS Section I - Property Damages
3.     These General Terms and Conditions shall cover destruction or partial losses of insured properties
    and/or interests, resulting in unforeseen and sudden insurance events occurred within the insured
    period, caused by the following risks (perils):

3.1.     FIRE - fire breakout forming flame or blaze emerged without a fireplace designed for the purpose or
    spread beyond it from its own power. The damages consist in total or partial burning, scorching,
    fumigation, carbonization, smoldering or contamination under the impact of fire-fighting water, foam
    or chemicals. The coverage also includes the consequences of extinguishing the fire.
3.2.     LIGHTNING - direct atmospheric electrical discharge causing inflammation, melting, burning,
    fumigation, breaking, crumbling or other mechanical damaging of insured properties.

3.3.     EXPLOSION - sudden and unpredictable impact of power generated by the expansion of gases,
    liquids or vapors and/or their compounds resulting from chemical reaction. The explosion is causing
    breaking, crumbling, twisting, tear up, burning, fumigation of the insured properties. Also damages
    on the insured property resulting from physical explosion of water heater, but not the damages to it
    shall be subject to indemnification.
3.4.    IMPLOSION - instantaneous and blast-like volume filling in a vacuum state, i.e. the pressure within
is lower than the ambient pressure. The damages consist in breaking, crumbling, twisting and tear up
of the properties.
3.5.    FALLING OF AIRCRAFTS OR THEIR PARTS OR LOADS FALLEN OFF
-    direct fall of aircrafts, their parts and loads on the insured property, causing breakdown,
crumbling, twisting, burning or damaging.
3.6.    The following damages (special exclusions) shall not be indemnified under s. 3.1., 3.2., 3.3., 3.4., 3.5:
-    occurred in result of exposing the insured property to fire or heat for the purpose of its
treatment or caused in contact with a highly heated object or lighting, heating, warming or
ironing device;
-    resulting from arson, deliberate explosion or other malicious acts causing the burning of the
insured property;
-    caused to electrical equipment under the impact of electric current without emergence of
    flame - voltage higher than the normal, insulation defects, short circuit, insufficient contact,
    technical shortcoming of measuring, adjustment and protective devices, overloading. If fire
    or explosion break out in result of a short circuit no indemnity shall be payable for the
    damages caused by them;
-    caused to electrical units or equipment as the result of indirect lightning flash;
-    from burning, singing or melting not in consequence of fire but resulting from contact with
heated object or for other reason;
-    caused by the falling of rocky masses and/or earth masses and other as the result of
explosions conducted upon command by the public authorities;
-    caused  by  aerodynamic  explosion  accompanying  the  technological  process  of  some
productions and not being of casual nature (natural fermentation, steaming);
-    due to explosion caused by aircraft;
-    caused by earthquake or other act of God (volcanic eruption or other similar);
-    caused by the explosive power used deliberately (reaction in internal combustion engines,
firearms or artillery or other similar equipment);
-    caused as the result of cables laid in violation of the technical standards and requirements or
wires put in the air;
-    resulting from explosive, flammable, corrosive or other hazardous substances, incompatible
    by their chemical properties, placed in vicinity of insured properties in contradiction to the
 






standards and requirements of the competent authorities  (RSPAB - Regional Accident Safety Service and other), or caused by powdery or gaseous substances emitted in the atmosphere from various industries.

3.7.     WINDSTORM - movement of air masses at wind speed exceeding 15 m/sec. The direct damages
    and damages caused by objects blown by the wind or parts of buildings, trees or branches fallen onto
    the insured property shall be recoverable. The damages consist in demolition, breakage, rupture,
    laceration,  tear,  carrying  away and  other  mechanical  damages or  destruction  of property.  The
    occurrence of a storm shall be certified by document by the hydrological and meteorological service
    “HMS” and in the lack of observations on the wind speed at the damage location the Insured shall
    have prove that:
- the air movement in vicinity of the insurance location has caused damages to buildings and other
fixed facilities which have been in perfect repair before the event or the damages, provided that the
buildings or other facilities have been maintained in perfect repair, could have been caused only by a
storm.
3.8.     HAILSTORM - the fall of ice pellets or hailstones causing breakage, cracking and other mechanical
    damage on the properties or wetting after the breakdown of windows, roof tiles and other.
3.9.    TORRENTIAL RAIN - rainfalls in large quantities in a short time, exceeding the values shown in
the  table  below.  The  damages  caused  on  the properties  consist  in  wetting,  drifting  away or
obstruction.

Duration in minutes    Rainfall quantity    Duration in hours    Rainfall quantity
l/m2    l/m2
5    2    1    12
10    4    2    18
15    5    4    27
20    6    8    35
25    7    12    45
30    8    18    52
35    9    24    60
40    10
50    11

3.10.    FLOOD - overflowing of large quantities of water onto the territory of the insured facility, occurred
as the result of extremely large rainfall quantities of any type and the fast melting of snow or ice, raising  the  water  level  in  surface  water  basins.  The  damages  consist  in  wetting,  obstruction, demolition, drifting away or insured properties.

3.11.     DAMAGE BY THE WEIGHT OF NATURAL ACCUMULATION OF SNOW AND ICE -
    demolition, collapse or deformation of buildings or installations, and damages on the properties
    located therein, regardless of whether the snow has fallen for a short time in large quantity or its
    accumulation has occurred in result of  wind blowing. This also includes damages on insured
    properties from naturally formed ice causing their demolition, collapsing, deformation, tearing.
3.12.    The following damages under sections 3.7,  3.8,  3.9,  3.10,  3.11 shall not be recovered  (special
exclusions):
-    damages on properties stored in the open or onto properties fixed to the external part of the
building    (i.e.:   advertising  signs,  aerials,  tents,  shelters,  pylons,  lightning  protection
installations, external lightings etc.);
-    damages on buildings under construction or capital reconstruction, and also on the movable
properties stored therein;
-    damages on roofs, stands, fences, greenhouses and other similar facilities built mainly of
glass elements;
-    damages resulting from flood caused by dam breach;
-    damages resulting from lake water outflow, without occurrence of events under s. 3.7, 3.8,
3.9 and/or 3.10.
-    damages as the result of flow or penetration of rain, hail, snow or water through windows,
 






exterior doors left open or other openings in the building, except if the same have not
resulted from the storm or hail and without any damage caused simultaneously on the
building;
-    damages resulting from poor state or insufficient maintenance of buildings and parts of the
buildings, missing and/or not repaired during the reconstruction;
-    damages on movable properties stored in premises situated beneath the ground level;
-    damages caused by the weight of accumulated snow or ice with human intervention or
damages that would not have occurred if the property had been handled with the care of a good owner.
3.13.     WETTING AS THE RESULT OF WATER AND STEAM LEAKAGE OUT OF PIPE
    INSTALLATIONS AND THE DEVICES CONNECTED TO THEM - caused as the result of
    cracking, knock-out, perforation or breakdown of installation or the devices connected to it, in
    consequence of which their normal operation is impaired. The installations can be water supply,
    heating (steam or water based), for water heating by sun elements. The damages consist in wetting,
    flooding, damaging or destroying of properties. In case of damages caused by the wetting of other
    insured property the Insurer shall also cover the damages on the impaired devices and installations
    except if the damages are not due to wear, corrosion or production defect. The costs on the accident
    detection and the installations opening and covering after their repair shall be indemnified within the
    limit set for the cost of the removal of debris and ruins resulting from an insurance event covered by
    the policy.
3.13.1.    No damages under s. 13.3. shall be covered as follows:
-    resulting from an accident occurred in construction or repair operations within the insured
site;
-    caused to buildings, abandoned or left without surveillance for more than 30 days and also
the properties left therein. No damages on steam, heating, fan and other installations shall be
recovered if such installations were not functioning due to the lack of fuel or have not been
properly drawn out or blown through;
-    resulting from freezing or cracking of pipes in unheated premises;
-    caused by sprinkler or other installations for water dispersion for fire fighting or irrigation
purposes;
-    resulting from the spillage of water, including from washing;
-    resulting from the sinking or the slipping of land masses except if caused by water outflow;
-    resulting from earthquake;
-    caused by the leakage of water out of swimming pools;
-    resulting from obstructed sewerage systems;
-    resulting from wetting by water leakage out of water supply installation due to taps left
open, unless otherwise expressly agreed;
-    caused by moist, condensate or mould.
3.13.2.    Special provision for providing coverage:
The mandatory franchise of the Insured in any damage shall be 10% of the approved indemnity, but not less than BGN 30.
3.14.     COSTS ON THE REMOVAL OF RUINS AND DEBRIS RESULTING FROM INSURANCE
    EVENT - the costs borne on necessity in the occurrence of insurance event covered by the insurance
    contract terms, for the removal of ruins and debris, urgent disassembly or demolition, support or
    temporary fortification, including transportation to the closest landfill approved by the Insurer, and
    the costs specified under s. 3.13. of this Section. The Insurer shall also cover the costs incurred by the
    Insured to limit the damages, provided that the latter has acted with the appropriate care even if his
    efforts had failed.
3.15.     MALICIOUS ACTS OF THIRD PARTIES, WILLFUL FIRE-RAISING (ARSON)   AND
    DAMAGES CAUSED BY EXPLOSIVE DEVICES - The Insurer shall indemnify the Insured in
    the occurrence of damages caused directly by malicious acts of third parties, including arson and
    willful explosion, causing the destruction or damaging  (mechanical or chemical) of the insured
    property which should be available at the time of inspection. The members of the Insured’s household
    and any related persons in the meaning of the Commercial Act, having access to the insured property
 






with the Insured’s knowledge and agreement shall not be considered as “third parties”.
3.15.1.    No coverage shall be provided under this risk for the following damages:
-    resulting from or related to committed burglary;
-    occurred in abandoned premises, left without attendance or safeguarding for more than 30
days;
-    occurred as the result of exposing the insured property to fire or heat for the purpose of its
treatment;
-    caused by explosion provoked upon command by the authorities;
-    resulting from combustible, flammable, corrosive and other hazardous substances, and the
joint storage of substances incompatible by their chemical properties, stored by the Insured in non-compliance with the requirements of the competent authorities (RSBAB and other).
3.15.2.    Special requirement for the provision of coverage:
Obligatory franchise of the Insured in any damage at the rate of 10% of the approved indemnity, but
not less than 100 BGN, subject to the selected coverage mode.
3.16.    DAMAGED PROPERTY AS THE RESULT OF MOTOR VEHICLE COLLISION - The
Insurer shall indemnify the Insured for total loss or partial damage to the insured property as the
result of motor vehicle collision. The damages to the insured property consist in mechanical damages.
3.16.1.    No losses on the motor vehicle having caused the damage shall be covered.
3.16.2.    Obligatory franchise of the Insured shall be applied for any damage at the rate of 25% of the amount
of indemnity, in case the damage has been caused by the Insured’s own motor vehicle or by such
other motor vehicle under the Insured’s control.
3.17.    EARTHQUAKE DAMAGING BUILDINGS AND CONTENTS - vertical or horizontal wavelike
quakes of earth masses caused by sudden natural displacements and failures in the Earth’s crust or
deeper earth layers, reaching at least Grade 6 in the Medvedev-Sponheurer-Karnik macro-seismic
intensity scale - 64 (Medvedev - Sponheuer - Karnik - 1964).
3.17.1.    The coverage shall not apply to the following damages:
-    caused on foundations of buildings, except if otherwise expressly agreed upon under special
terms and against payment of extra premium;
-    damages caused on  tanks and water installations  fixed  to  the  buildings,  outside  the
courtyards, staircases or other external structures, except if otherwise expressly agreed upon
under special terms and against payment of extra premium;
-    on frescoes and wall paintings;
-    caused by waves underwater or flood in consequence of earthquake;
-    resulting from resonance phenomena in consequence of earthquake;
-    caused on buildings and facilities which have not been secured structurally secured in
accordance with the seismic activity regulations;
-    caused by falling objects due to incorrect assembly or insufficient fixing.
3.17.2.    Special requirements for the provision of coverage:
-    The limit of the Insurer’s liability may not exceed 85% of the relevant insured amount on the
main coverage. In the case a higher limit of liability has been agreed upon this should be stated expressly in written in the policy of insurance.
-    The Insured shall participate with franchise in any damage up to 5% of the insured amount
    of the properties but not less than the sum agreed upon and stated in the Policy, except if
    otherwise expressly agreed.
3.18.     BURGLARY - taking of the insured property from the Insured’s control without the latter’s consent,
    for the purpose of its misappropriation by illegal entry, consisting in destruction, damaging or digging
    under solid fences made for the protection of people or a property. The Insurer shall also cover the
    costs on the issue of new ID papers, new debit and credit cards and SIM cards for mobile phones,
    stolen in the burglary, within the limit of 10% of the agreed insured amount on the “Burglary” risk.
 






Without payment of extra premium the Insurer shall indemnify the damages on the insured property caused by the burglary perpetrators, within 5% of the insured amount of the real property.
Subject to further written agreement and against payment of extra premium the Insurer shall also accept  to  cover  a  theft  committed by technical means. The technical  means include passkey, screwdriver, hammer, various types of keys, whether common, secret or forged, not being designed for unlocking the premise. No damages shall be indemnified in the case of theft committed by means of original, duplicate, stolen or found keys, destined to ensure access to the insured premise.
3.18.1.    No losses shall be covered:
-    in case no burglary has been established;
-    for a premise left unattended for more than  30 days, without notifying the Insurer and
receiving the latter’s consent and instructions;
-    for domestic animals.
3.18.2.    Special requirement for the provision of coverage:

Obligatory franchise of the Insured in any damage to the amount of 10% of the agreed indemnity.

3.19.     ROBBERY - taking the insured  property  from  the  Insured’s  control  for  the  purpose  of
    misappropriating it by means of violence, threat or putting a person in a helpless condition. Threat
    means threatening by such an immediate action as to expose to grave danger the life, health, dignity
    or the property of the persons present. Any theft in which the perpetrator caught in the act has had
    recourse to violence or threat to keep control of the stolen object shall be considered as robbery.

3.19.1.     Special requirement for the provision of coverage:
Obligatory franchise of the Insured in any damage to the amount of 10% of the approved indemnity.
3.20.     VANDALISM - willful destruction or damaging of insured property. The damaged or destroyed
    property should be made available at the time of inspection whereas the insurance event shall be
    established on the grounds of the signs of physical or other impact.
3.21.     WINDOW GLASS BREAKAGE - The Insurer shall indemnify the Insured for total loss or partial
    damage on the insured property in result of broken window glasses or window glasspacks. The costs
    for their repair shall be recovered up to the limit agreed in the Policy. The Insurer shall provide
    insurance protection against occurring damages consisting in broken window glasses in result of
    reasons not specified hereunder as expressly excluded.
In the glass breakage resulting from an event covered under other risks, the indemnity shall be paid under the relevant risk, and if no such risk has been included in the policy, the indemnity shall amount to the agreed limit for one event under such risk.
3.21.1.    No damages shall be indemnified:
-    if  occurred in the implementation of repairs, reconstructions or change in the insurance
location;
-    in consequence of subsidence in the structures reinforcing the glasses within the warranty
service term or in case of launching the building for operation;
-    if caused to unfortified windows;
-    if caused to abandoned premises (premises left unattended or without security for more than
30 days);
-    if due to incorrect or low quality installation or manufacturing of glasspacks;
-    if caused on the window carpentry
-    if caused on external window glasses.
3.21.2.    Special requirement for the provision of coverage:
Obligatory franchise of the Insured in any damage to the amount of 10% of the approved indemnity.


3.22.     ACCIDENTAL BREAKAGE OF INTERIOR GLASSES, HOUSEHOLD EARTHENWARE
    AND AQUARIUMS - the Insurer shall indemnify the Insured for damages caused by the accidental
 






breakage of permanently fixed window glasses, glasspacks or aquariums. The coverage also includes
damages on  wash-basins,  toilet  pans  and  cisterns,  baths,  shower  cubicles,  bidets  and  other
earthenware. The glass or faience is considered as broken if the crack is through their  whole
thickness.

3.22.1.     No damages shall be covered if:
- only the glass surface is damaged by scratches or shelling.

3.22.1.    Special requirement for the provision of coverage:
Obligatory franchise of the Insured in any damage to the amount of 25% of the approved indemnity.
3.23.    DAMAGING THE PROPERTY BY FUMES AND SMOKE - the Insurer shall indemnify the
Insured for damaging or destroying the insured property caused in result of sudden or accidental
emission of fumes and smoke from heating devices, cooking equipment, washing machines, dryers or
other heating systems located in the insured facility.
3.23.1.    No damages shall be covered if caused in result of continuous impact of fumes and smoke.
3.24.    COSTS FOR THE RENT OF ALTERNATIVE ACCOMMODATION OR HOTEL - the
Insurer  shall  indemnify  the  Insured  for  the  extra  costs  incurred  for  the  rent  of  alternative accommodation or hotel in case that the insured premise has become uninhabitable in consequence of insurance event covered under the terms of insurance and strictly provided that the Insured has taken all the necessary steps to promptly restore the damaged property. After approval by the Insurer these costs shall be recovered within a maximum term of 30 days and they shall be limited to 0,3% per day, subject to the selected coverage option, from the insured amount of the real property for the period of coverage. Only the accommodation costs shall be covered, excluding food, water, telephone, heating, electricity and other similar costs.
3.25.     DAMAGING THE PROPERTY IN CHANGE OF ADDRESS - the Insurer shall indemnify the
    Insured for total loss or partial damage of the insured movable property, caused in consequence of
    road accident, motor vehicle breakdown, loading and unloading, in case of insurance address change.
    The Insurer’s liability shall be limited to 10% of the insured amount of the movable property on the
    main coverage.
3.25.1.    No damages shall be covered:
-    in the case of pillage, inexplicable loss, theft of the insured property or theft of the whole
motor vehicle transporting the property;
-    if due to inappropriate packaging or fixing the property;
-    caused to artworks, documents, jewelry, clocks, leathers or leather products.
3.26.    LOSS OF INCOME FROM RENTAL - the loss of rental shall be covered if caused by damaging
of the insured property in consequence of insurance event covered under the terms of insurance. The losses proven by evidence shall be indemnified up to 3% of the insured amount for the period of time from the occurrence of the insurance event until the solution of its consequences, but such period may not exceed three months.
3.27.     SHORT CIRCUIT, ELECTRIC SHOCK -
The Insurer  shall  indemnify the  Insured  or  a  benefiting third  party  for  damages  occurred  in consequence of short circuit or electric shock. The damages consist in destruction, damaging, change in the technical parameters of elements or modules in electric or electronic devices and systems.

-    A short circuit is an unwanted connection between two points of various potential, whereas
    the circuit has not been designed for a current with such power value.
-    An electric shock is the sudden change in the power supply values (flow of higher than the
    standard voltage) - overvoltage induced by various anomalies in the electric stations and
    substations, including acts of God, not leaving visible external signs (indirect thunderbolt
    fall,  momentary  short  circuits  in  the  installations  for  transfer  and  transformation  of
    electricity, sudden turn off/on of electric switches or protections).
 







3.27.1.    No damages shall be covered if:
-    resulting from natural wear or hidden defect of devices within a warranty service period;
-    due to incorrect use by the Insured, not in conformity with the manufacturer’s instructions.
3.27.2.    Special requirement for the provision of coverage:
Obligatory franchise of the Insured in any damage amounting to 25% of the approved indemnity, but
not less than BGN 50.
4.    Only the direct  material  damages  incurred  in  result  of  risks  covered  by  the  policy  shall  be
indemnified.

Section II - General Third Party  Liability
5.    The material and non-material damages caused to third parties by the Insured as a private person and
the persons living with the Insured in one household shall be covered:
-    husband (wife);
-    minor or not of full age children of the Insured  (incl. stepchildren, adopted or foster
children); for the children of full age (unmarried) the coverage shall be effective provided
that  they are going to school or studying in another full-time form of study, until the
moment they organize their own household and start earning their own regular income;
-    the persons working (under fixed-term employment contract) in the Insured’s household,
for liability to third persons created by the performance of their work at the address of the
insured property.
5.1.    The coverage includes the Insured’s liability ensuing from risks in his capacity of:
-    owner and/or tenant of apartment(s), house and/or country house located on the territory of
the Republic of Bulgaria, that he is using personally ;
-    employer of service staff working in the household (under fixed-term employment contract)
at the address of the insured property;
-    host with respect to the guests received and accommodated by him and the property they
have brought in;
special exclusion - in case of theft of property owned by the guest and related to damages caused to his/her motor vehicle;
-    owner of small pets (decorative fishes and birds, rodents, rabbits, cats, dogs, exotic  -
    tarantulas, scorpions, chameleons, reptiles, amphibians), except for selected breeds of battle
    dogs and dogs of the breeds Pitt Bull, Bull Terrier, Mastiff, Shar Pei, Rottweiler, Caucasian
    Sheepdog, Argentine Dogo, American Bulldog. The protection also refers to a person
    authorized by the pet owner, temporarily bred, kept or taming it;
5.2.    Subject to payment of additional premium, the insurance coverage may also include risk, related to
liability ensuing from:
-    ownership of buildings and property specified in the policy, which are not personally used
    by the Insured, including the liability of the persons performing under contract activities on
    the cleaning and maintenance of such a property, as far as the submitted claims are not
    related to these activities;
-    performing repair activities up to the amount of BGN 10 thousand, on the facility(ies)
specified in the policy, with respect to damages caused by the Insured and/or persons to
whom the management of the operations and/or the performance has been assigned.
5.3.    The Insurer shall not owe indemnity for damages caused in relation to:
5.3.1.    liability, assumed by the Insured by virtue of a contract or agreement, which would not have arisen
on other legal grounds;
5.3.2.    claims  for  salaries,  pensions,  wages  or  other  fixed  remuneration,  medical  costs  and  social
 






allowances;
5.3.3.    damages caused in the Insured’s exercise of equestrian sports, water sports, hunting, cycling, auto
racing, boxing or wrestling;

5.3.4.     damaging the property of third parties, used by the Insured or stored under rental, lease, deposit or
    other similar agreement; or caused in the performance of business or professional activity by the
    Insured (incl. repair, processing, transport, trials and other similar) on or with such a property. In
    case of damaging such third party real property, this exclusion shall be applicable as far as the
    property has been the immediate subject of such an activity;
5.3.5.    bodily injury in result of transmission of a disease or material damages and financial losses resulting
from ill animals;
5.3.6.    damaging of goods manufactured or supplied by the Insured or works done by the Insured, by reason
inherent to or usual for the production, supply or the works;
5.3.7.    ownership and use of motor vehicles (incl. the devices attached thereto), vessels and aircrafts;
5.3.8.    professional consultations, services and practice, provided or performed by the Insured (professional
liability);
5.3.9.    bodily injury of a third party working under contract at the Insured’s household, as far as the injury
is related to disability or disease caused by or in the course of the work.

III.    GENERAL EXCLUSIONS UNDER SECTION I AND SECTION II
6.    The Insured shall not owe indemnities in the occurrence of damages resulting from:
6.1.    military acts or trainings, enemy invasion, terrorist acts, coup d’etat, civil commotions, strikes, riots,
lockout, resurrections, requisition, confiscation, nationalization, demolition or damaging of property upon command by the government or other public authority;

6.2.     damage, directly or indirectly caused by nuclear reaction, radiation or radioactive contamination,
    radioactive, toxic, combustible or other hazardous substances in the production of nuclear devices or
    components for the same, or laser rays;
6.3.     damages caused in result of continuous impact of temperature, gases, evaporations, humidity,
    sediments (incl. fumigation, soots, dust and other similar), leakages, dry decaying, sinking (incl. of
    buildings and structures), sliding, vibrations in consequence of construction activity, floods;

6.4.     non-conformity with building standards and regulations, internal architecture and building changes,
    related to electric, plumbing or wastewater installations and other, made in breach of the normative
    regulations and/or by incapable persons, bad performance, design error or uncorrected shortcomings
    from former events;

6.5.     low-quality repair, low-quality materials, hidden/production defect, discrepancy in the scope of
    warranty service, except when the subsequent damages have resulted from insurance event due to
    these reasons - covered risk;
6.6.    failure of such parts of the electric equipment which have caused fire in result of spontaneous
ignition, overcharging, short circuit, overheating or flow of current through the machine bodies. The
damages of the fire on the other parts of the equipment shall be covered;
6.7.    damages caused by birds, animals and rodents (only under Section I - Damages on Property);
6.8.    uncorrected failures from events occurred earlier;
6.9.    wear and tear,  scratching,  tearing,  notching,  spoiling,  moist,  mould,  fungal  formations,  rust,
corrosion, eaten by insects or parasites, extreme temperature values;
 







6.10.    improper operation, incorrect storage of the insured property or caused by combustible, flammable,
corrosive or other hazardous substances, incorrectly stored in the insured facility;
6.11.    property the location of which is different from the one stated in the insurance policy;
6.12.    use of alcohol, opiates or other strong narcotic substances by the Insured;
6.1.3.    gross negligence, malicious acts or inaction by the Insured, members of his household or other
persons allowed by him to have access to the insured premise or inhabiting it with his consent (only
under Section I - Damages on Property).
6.14.    penalties, sanctions and punitive awards by the competent authorities.
7.    The following shall not be subject of insurance and the Insurer shall not be liable for:
7.1.    documents,  plans,  maps,  drawings,  designs,  manuscripts,  prototypes,  models,  information  on
carriers, software, tickets, transport cards;
7.2.    plants, animals, birds;
7.3.    aerials (satellite etc.) and their accessories;
7.4.    motor vehicles and self-propelled machines with state plate number and the trailers attached thereto,
vessels and aircrafts;

7.5.     artworks, antiques, numismatic, philatelic, weapon collections, hunting trophies, objects of precious
    metals and gems, jewelry, adornments, hand and pocket watches, arms, mobile phone systems,
    portable computer equipment, commercial goods;

7.6.     common flooring surfaces, cellars and attics of residential apartment blocks or houses (except if all
    the apartments and/or floors in the building have been insured) and the property located therein;
7.7.    ramshackle buildings, shelters and other farm buildings, elements of the building, if the same are not
steadily fixed.
8.    Subject to written agreement and against payment of additional premium the Insurer may cover
some of the excluded risks.

IV.    INSURANCE EXECUTION
9.    The insurance is executed on the grounds of the Application-Questionnaire form, completed by the
insurance applicant. The Insured is obliged to answer in written to all the questions of the Insurer. The Insured should therein state any details pertaining to the property, any circumstances that have become known to him or with concern on his part could have become known to him, being of material importance in establishing the nature and scope of the risk, selected coverage option, effective term of insurance and form of payment of the insurance premium.

9.1.     In case the Insurer has deliberately stated incorrectly or concealed a circumstance, in the occurrence
    of which the Insurer would not have entered into the insurance contract, the Insurer shall be entitled
    to cancel the insurance within one month from knowing the circumstance by withholding the
    premium already paid and the Insurer shall be entitled to a premium for the period until expiration of
    the insurance.
9.2.     If the circumstance deliberately stated incorrectly or concealed is of such nature that the Insurer
    would have entered into the contract but under other terms, the latter shall be entitled to request for
    its amendment within one month from knowing the circumstance. If the Insured fails to agree with
    the suggested amendment within two weeks from its receipt, the effect of the relevant coverage shall
    be canceled and the Insurer shall withhold the premiums already paid and will be entitled to collect
    the premiums due for the period until expiration of the insurance.
 







9.3.    When the incorrectly stated or concealed circumstance has affected the occurrence of insurance
event, the Insurer may refuse totally or partially the payment of indemnity.

9.4.     In case the Insured has executed the agreement through an attorney or on behalf of a third party, it
    shall suffice that the concealed circumstance has been known to the Insured or his attorney or the
    third party as the case may be.

10.     Upon agreement between both parties, except if expressly provided for according to the General
    Terms, the Insured’s own participation (franchise) in a damage shall be set in absolute amount or as
    a percentage of any damage or as a combination of both.
11.    The execution of the insurance shall be certified by the issue of insurance policy which shall only
take effect after the Insured has paid the whole premium or the first installment of it.

V.    EFFECTIVE TERM, DURATION AND TERMINATION OF INSURANCE
12.    The insurance shall take effect from 00:00 h. in the day following the date of execution of the policy
by the parties on the insurance contract and the payment of the insurance premium or a later date
specified in the insurance policy, provided that the due premium has been paid. The insurance shall
expire at 24:00 h. in the day stated as expiry date in the insurance policy.
13.    The insurance shall be executed for a minimum term of three months and a maximum term of four
years.
14.     The insurance agreement can be terminated earlier by either party by a seven-day prior notice in
    written (the notice term shall start elapsing from the date of its receipt), without prejudice to the
    parties rights under the contract until expiration of the notice period.

14.1.     In case of termination by the Insurer, the Insured shall return the relevant pro rata portion of the
    premium  already  paid  for  the  unelapsed  period  of  the  term,  by  withholding  the  incurred
    administrative and business costs.

14.2.     In case of termination by the Insured, the Insurer shall return to the Insured a part of the premium
    already paid after deduction of the premium due for the period from the initial effective date of the
    insurance until its termination, calculated according to the short-term tariff, after deduction of the
    incurred administrative and business costs.
14.3.     In case of earlier termination of the insurance contract on which indemnities have been or are to be
    paid, no insurance premium shall be returned and the outstanding premium for the period until the
    date of termination shall be due and deductible from the indemnity.

VI.    TERRITORIAL SCOPE
Section I - Property Damages
15.     The insurance shall be only valid for the premises and properties located at the address stated in the
    policy, except for the cases when coverage has been agreed upon for the relevant property in change
    of address of insurance.
16.    The insurance shall be only valid for properties located on the territory of the Republic of Bulgaria,
except if otherwise expressly agreed.

Section II - General Third Party  Liability
17.    The coverage shall be valid for events occurred within the effective term of insurance on the territory
of the Republic of Bulgaria.

VII.    SUM INSURED AND INSURER’S LIABILITY
 






Section I - Property Damages
18.     The sum insured for which a particular property or a group of properties have been insured shall be
    agreed upon between the Insurer and the Insured on the basis of the actual cash value or new
    replacement value of the property as of the date of execution of the insurance.

19.     The insured sum shall be stated by the Insured and the values stated in the policy shall be the
    maximum liability of the Insurer for the insured property. The execution of the insurance contract on
    insured amount stated by the Insured shall not mean that the Insurer has accepted them as actual or
    recovering.  The Insurer  shall  set  the  actual  cash  or  new replacement  values of the damaged
    properties as of the date of occurrence of the insurance event.
20.    The insurance amount on the insurance shall be set according to one of the following methods:
20.1.    Actual cash value - the value of the property against which instead of the insured property, another
property  of  the  same type,  function,  configuration,  quality,  moral  and  technical  depreciation, condition and conformity could be purchased or built. The actual cash value of the property is set by deducting the accumulated moral and technical depreciation from the new replacement value.

20.1.1.     The actual cash value of newly purchased properties, except for computer equipment within one year
    from their purchasing, is equal to their new replacement value.

20.2.     New replacement value - the value at which a property of the same type, quality and designation as
    the insured property could be bought, manufactured or built in a new state as of the time of execution
    of the insurance. The costs of recovered supply of the movable property shall include transport,
    dismantling and installation costs and possible fees and duties, and for the real property - the design
    and planning costs at prices usual for the relevant region.
20.3.     Expert assessment made by licensed expert, whereas in such a case an inventory with stated insured
    amount for each particular object should be annexed to the policy.
21.     For some types of property the insured amount may be also set on the grounds of limits agreed upon
    between the parties for a single event and for the effective term of insurance, whereas the form of
    insurance shall be “first risk” and the Insurer’s liability shall be limited to the actual amount of the
    damage without applying the pro rata principle, i.e. waiver of underinsurance.

22.     The costs for improvements in the insured facilities for the effective term of insurance shall be
    deemed covered without the payment of additional insurance premium up to 10% of the insured
    amount for the relevant property or up to the agreed limit of liability.

23.     A property newly acquired within the effective term of insurance shall be deemed insured under the
    relevant group of properties, if the insurance has been executed without inventory and its value is not
    higher than 3% of the insured amount for the relevant group. In the remaining cases the property
    shall not be deemed insured.

Section II - General Third Party  Liability
24.    The parties have agreed upon a limit of liability:
24.1.    The Insurer’s liability for any compensations and costs payable in result of all insurance events
during the effective term of insurance may not exceed the limit of insurance liability stated in the policy;

24.2.     A sequence of claims due to continuous or recurrent essentially one and the same harmful factor
    shall be deemed one insurance event, and the date of occurrence of the first damages shall be
    considered as date of the event;
24.3.    The Insurer shall participate in the coverage of any damage (claims and the ensuing costs) subject to
the franchise agreed upon in the policy.
 






VIII.    INSURANCE PREMIUM
25.    The insurance premium shall be set according to the Insurer’s tariff subject to the nature and scope
of the risk, the type of property, the agreed limits of insurance liability, the scope of insurance
coverage and the effective term of insurance.
25.1.    When the insurance is being executed for a term shorter than one year, the premium shall be
calculated according to the short-term Insurer’s tariff.
Months    3    4    5    6    7    8    9    10    11
% of the annual    40    50    60    70    75    80    85    90    95
premium
26.    The insurance premium shall be paid in a single installment upon execution of the insurance, except
in the cases when deferred payment has been agreed upon.
26.1.     In case of a deferred payment of the insurance premium has been agreed upon, the Insured or the
    person having executed the insurance is obliged to pay the relevant insurance installments not later
    than the maturities stated in the insurance policy.
26.2.     In case of non-payment of the relevant insurance installment by the Insured or the person having
    executed the insurance, the Insurer may reduce the insured amount, amend the contract or terminate
    it by fifteen-day notice.

IX.    CHANGES, AMENDMENTS AND ANNEXES WITHIN THE EFFECTIVE TERM OF
INSURANCE
27.    During the effective term of the contract the Insured shall be obliged to communicate to the Insurer
any newly occurred circumstances about which the Insurer has asked in written upon execution of
the contract.

28.     The Insurer shall not be liable for newly purchased or acquired objects during the effective term of
    insurance, the total value of which exceeds 3% of the insured amount for the movable property,
    except if the same have been insured in addition and an extra premium has been paid, calculated pro
    rata to the unelapsed period until expiration of the insurance.
29.     In case there is no further need for the coverage for insured properties or interests, the collected
    premium for the unelapsed period until expiration of the insurance shall be recovered if the Insured
    has claimed in written for the change.
30.    Any amendments requested by the Insured and approved by the Insurer within the effective term of
insurance shall be set in Annex to the insurance contract.
31.    The Insurer shall not be liable for any properties the ownership of which has been transferred to third
parties even if they remain located at the address of insurance.

X.    INSURED’S RIGHTS AND OBLIGATIONS DURING THE EFFECTIVE TERM OF
INSURANCE
Section I - Property Damages
32.    The Insured shall be entitled:
32.1.    to transfer the rights and liabilities on the insurance contract in case of change of ownership of the
insured property with a written notice and the Insurer’s consent;
32.2.    to agree upon an increase of the insured amount on the policy in case of change of the actual cash
value or new replacement value of the property, and the inclusion of further property to the policy
against payment of extra insurance premium;
32.3.    to insure additionally the property for the difference between the first insured amount and the
 






reduced insured amount obtained in result of the payment of indemnity.
33.    The Insured is obliged:
33.1.    to  notify the  Insurer  of any material  circumstances that have become known to him and are
important to the establishing of the nature and scope of risk upon execution of the insurance;

33.2.     in case of increase of the risk with respect to the insured property, to notify in written the Insurer of
    the newly occurred circumstances during the effective term of the insurance contract as soon as they
    have become known to him, but not later than seven days thereafter;
33.3.    to take any necessary steps as to prevent the occurrence of an insurance event or if such event has
occurred - to limit the scope of damages;
33.4.    to provide access to the Insurer for inspection of the insured property condition;
33.5.    to keep the whole documentation necessary and required under the effective laws in the country,
pertaining to the insured properties and interests;
33.6.    to refrain from providing or surrendering his insurance documents to third parties on any occasion,
in order to prevent their misuse;
33.7.    to put the care of a good manager, to maintain the insured property in good repair, to refrain from
action or inaction likely to increase the risk;
33.8.    to comply with the instructions and recommendations of the competent authorities and the Insurer
with respect to the storage and the operation of the insured property;
33.9.    in case of change of the location of the insured property, to notify in written the Insurer within 24
hours from the occurrence of the change;
33.10.    while leaving the insured premise even for a short period of time, it should be locked.
34.    In default of the obligations under par. 33 of this Section the Insurer shall be entitled to terminate the
effect of the insurance contract with the consequences under par. 9.

Section II - General Third Party  Liability
35.    The specific obligations of the Insured with reference to the Civil Liability coverage during the
effective term of insurance shall be as follows:
35.1.    In the occurrence of event likely to result in the submission of claim covered under the insurance, the
Insured is obliged to notify the Insurer immediately and not later than seven days from knowing of
the event;
35.2.    The Insured is obliged to notify the Insurer of any imminent risk, to explore and describe any known
circumstances pertaining to the submission of such a claim;

35.3.     Without the Insurer’s written consent, to refrain from providing verbal or written information on a
    particular case, propose agreements out of court, settle claims and make payments thereunder or
    assume liability on claims arisen for damages from risks covered by the insurance.
36.     In default of the obligations under paragraph 35 of this Section, the Insurer shall be entitled to
    terminate the effect of the insurance contract with the consequences under par. 9.
XI.    RELATIONS BETWEEN THE PARTIES IN THE OCCURRENCE OF INSURANCE
EVENT

Section I - Property Damages
 






37.    In the occurrence of insurance event the Insurer is obliged:
37.1.    to immediately take any necessary, reasonable and appropriate steps for preventing, limiting and
reducing the scope of damages, and if possible to coordinate such steps with the Insurer;
37.2.    in  case  of  fire,  theft,  malicious  acts/vandalism  or  in  other  cases,  when  necessary,  to  notify
immediately the RSPAB, the regional police service or another authorized public authority;
37.