DZI - adoption of the Euro
During this period, product prices in leva will also be indicated in euros. When:
The dual currency visialization of prices for all goods and services offered to consumers in leva and in euro shall be introduced to facilitate the transition and adaptation of citizens to the new currency.
In addition, it plays the role of protection against abuse and speculative price increases during the process of introducing the euro.
The terms of your current insurance will not change. Payment of the total amount due or installments of insurance premiums in cash within a period of one month after the date of introduction of the euro, will be made both in leva and in euro, and after this period cash payments will only be accepted in euro.
The official currency in the Republic of Bulgaria shall become the euro and you may use it to pay in all countries in the eurozone.
As from the date of the introduction of the euro, all your products that have been in leva up to this point will be automatically converted into euros.
Before the euro adoption date, no significant changes will follow, except for the double visualization in euro and lev of the instalments and the total amount due under the premium. You will be able to make payments in both currencies, and payments in euros will only be accepted on DZI's euro bank accounts.
After the euro changeover date, all existing insurances will remain active and you will not need to take any further action. All new insurance will be taken out in euros.
Within one month from the euro changeover date, there will be a period of dual circulation in leva and euro as national currencies, and you will be able to pay in cash with leva and euro and receive your change in euro. After the dual circulation period, cash payments will only be accepted in euros.
For payment methods other than cash payments, such as all online and card payments, after the euro adoption date will be made in euro only. DZI's BGN bank accounts will be automatically converted into euros and will accept payments in euros. It will not be necessary to change the IBAN of the account when paying amounts due. All POS terminals will accept card payments in euros only.
DZI has already prepared its systems for the introduction and testing of the necessary changes, starting from 17.06.2025, the phased introduction of the dual indication of prices in BGN and EUR in the documents issued to customers for different types of products.
The main difference will be in the visualisation of the total premium payable and premium instalments in printed documents (policies, endorsements, e-bills/debit letters) and information channels (online portals, email, SMS and various notifications).
The double denomination of contributions and total premiums payable is calculated by dividing the euro value by the official exchange rate in its entirety and then rounding the result to the second digit.
For products of DZI - GENERAL INSURANCE EAD, rounding in favour of the client is used instead of the mathematical rounding specified in the Law on the Introduction of the Euro in the Republic of Bulgaria (ZVERB).
Prior to the euro changeover date, rounding in favour of the customer shall be applied and the second decimal place shall not be changed regardless of the value of the third decimal place. This ignores cases where the second digit may be rounded up, as in the mathematical rounding referred to in the VERB Act. The effect for the end customers is that when an instalment or total amount due under a premium is paid in the double-designated currency, the value will always be equal to or less than that of the original policy currency. The difference will be forgiven and no insurance will be cancelled for unpaid liabilities.
After the date of introduction of the euro, rounding in favour of the customer will only apply to existing insurance policies taken out in BGN. All existing and new euro currency insurance after the euro introduction date will be double marked, with the euro value being rounded up mathematically as set out in the VBERB Act.
The dual designation is intended to facilitate the adoption of prices in euros by end customers. The law requires that there be a dual price designation for amounts due from customers, which for insurers are premium insalments and total premium amount due.
From 17.06.2025 DZI customers will start to receive insurance policy, proposal-questionnaire, offers and other documents in stages, as well as electronic messages for reminders of amounts due with double indication of installments and total premium amounts due.
Insured value, limits of insurance, limits of liability, insurance tax and other values other than instalments due and total premium amounts due shall not be subject to dual indication in the two currencies.
For the period of dual indication of prices in BGN and EUR, only the total amount to be paid will be indicated in BGN and EUR. The official exchange rate that was used in the calculation of the dual indication will also be added.
Under the VERB Act, it is not necessary to display the official exchange rate on all documents and communication channels with dual display. The official exchange rate of the lev to the euro is required to be announced on a fiscal/system voucher or in another document registering the payment issued instead of a fiscal/system voucher, which in the case of a DZI is the electronic account.
Yes, the dual indication of prices in euros and euros applies to all documents, whether under new or existing policies. After the euro changeover date, all lev values will be replaced by their euro equivalent, with the exception of the dual indication where the lev values will remain for information purposes for a further 12 months.
The dual indication of prices in euro and lev does not affect the claims processes. Claims are filed in the currency in which the policy was taken out, as was the case prior to the dual designation, and paid in the currency the customer wants - mainly in BGN. After the euro introduction date, all new claims will be filed and paid in euros.
Compensation for claims filed will be paid to a bank account designated by the customer. There will be no changes to the claims payment processes prior to the euro changeover date. After the euro changeover date, claims will be paid in euros only.
Liability limits are rolled over according to the rollover and rounding rules in the Act. The lev value is divided by the official exchange rate and rounded mathematically to the second decimal place.
