SOFIA – Taxi drivers across Bulgaria staged a nationwide protest on Monday, voicing outrage over what they describe as a drastic and illegal hike in “Civil Liability” insurance premiums.
The drivers accuse insurers of cartel-like practices and demand immediate intervention from authorities to alleviate the financial strain on the industry.
The protest, organized by the National Taxi Union, disrupted traffic in Sofia and over 30 cities nationwide. In the capital, three separate convoys converged at the National Assembly, causing significant slowdowns.
The first group began at 10 a.m. from the corner of Tsaritsa Joanna Boulevard and Louis Pasteur Street, while two others departed an hour later from Tsarigradsko Shose and Botevgradsko Shose boulevards.
While organizers assured that roads would not be fully blocked, heavy traffic disruptions were reported throughout the day as hundreds of taxis joined the demonstrations.
Financial Pressure and Allegations of Collusion
Krasimir Tsvetkov, chairman of the National Taxi Union, highlighted the financial burden posed by soaring insurance premiums. “The increase is unsustainable for an industry where a single vehicle often supports one or two families,” he said.
Tsvetkov revealed that premiums have risen by 200% to 1,100% in some cases. For example, his own hybrid car’s premium jumped from 386 leva to over 1,000 leva, with some insurers demanding as much as 3,000 leva.
He accused insurers of colluding to drive up prices, describing the situation as a violation of competition law.
Tsvetkov criticized the lack of response from key institutions, including the Commission for the Protection of Competition, the Financial Supervision Commission, and the prosecutor’s office.
Countering claims by insurers that taxis are disproportionately involved in accidents, Tsvetkov argued that the responsibility for accidents lies with drivers, not vehicles.
He also noted that in Sofia, taxis operate at an average speed of 17-20 km/h, minimizing the risk of serious collisions.
Insurers Push Back
Plamen Shinov, deputy chairman of the Association of Bulgarian Insurers, refuted allegations of collusion. He explained that taxis are classified as high-risk vehicles due to their extensive daily mileage, a standard classification across Europe.
“Only a few companies offer ‘Civil Liability’ policies for taxis because of the increased likelihood of claims,” Shinov said, adding that insurers have not adjusted premiums to reflect inflation. He invited taxi associations to provide detailed accident data to facilitate further analysis.
Growing Frustration and Escalation Threats
The protest follows weeks of rising tensions, including an initial demonstration in Plovdiv on October 31. Taxi drivers have engaged with parliamentary groups, but they expressed dissatisfaction with the lack of concrete measures to address their concerns.
Tsvetkov warned that if authorities fail to act, further protests could escalate, potentially including road blockages during the upcoming Christmas holidays.
Efforts to introduce a bonus-malus system, which would assess insurance risk based on individual drivers’ records, remain stalled.
Tsvetkov emphasized that the taxi industry cannot survive under the current financial pressure, urging authorities to take immediate action to prevent the situation from worsening.
As protests continue, commuters across Bulgaria brace for more disruptions while taxi drivers fight to safeguard their livelihoods.