News

31 March 2023

Ombudsman Diana Kovacheva has turned to Financial Supervision Commission (FSC) Chair Boyko Atanasov on account of citizens’ complaints against Electrohold Sales EAD. The reason is that, without their knowledge or consent, when they pay their monthly bills for electricity using EasyPay or FastPay offices, they are charged a monthly payment of 2 levs under an ElectroProtection insurance. The problem is that people find out about it only after they have paid their bills.

Prof. Diana Kovacheva insists before the FSC Chair that an inspection be carried out, as per the respective competence, of the work of ZD Euroins AD and Electrohold Sales EAD in relation to the said ElectroProtection insurance.

The Ombudsman emphasises that, according to the website of Electrohold Sale EAD, ElectroProtection is a voluntary property insurance which provides coverage for damage of household electric appliances caused by short circuits, power surges and power charges in the electric system as a result of lightning.

It also becomes clear that ElectroProtection is a joint product of ZD Euroins AD and Electrohold Sales EAD and is targeted only for household customers of Electrohold Sales EAD.

On the other hand, a query on the website of the insurance company reveals that the section Information Documents about Insurance Products does not feature any published documents about an ElectroProtection insurance.

The Public Advocate draws attention to the fact that, pursuant to the General Terms and Conditions, the insurance company ZD Euroins AD concludes a contract with the insuring party, Electrohold Sales EAD, to insure household appliances located in real estate properties at the respective supply point in relation to which there is a contract and a customer number for the sale of electricity with the insuring party.

“As seen from the information posted on the website of the electricity supply company, the insurance is voluntary and it can be entered into in two ways: 1/ Depending on whether the customer has received a proposal letter for the issuance of an insurance certificate together with the invoice for electricity. If such a proposal has been received, the first payment and any following payment for the insurance can be made only at the payment office of a payment operator, FastPay or EasyPay, when the monthly electricity bill is paid and the insurance is activated upon the first payment for the insurance; 2/ If a proposal letter has not been received, the customer needs to go to an Electrohold reception office and state their willingness before an employee,” the Ombudsman notes.

She adds that, as regards the termination of the insurance coverage of the certificate, it is noted that it can be made on the day of the first payment – at the payment desk in the same office of the payment operator where the payment is made and, in all other cases – by submitting a written notice to the insurer as of the date of elapse of the month for which a payment from the insurance premium has been made.

The Ombudsman is definitive that such a behaviour of a monopoly is inadmissible.

Prof. Kovacheva also draws attention to another aspect of the General Terms and Conditions – their review reveals, for example, the presence of a clause about “Exceptions to the insurance coverage”, Article 6, which is irrelevant to the insurance. In other words, it exempts the insurer from liability for losses, damages and/or costs stemming or arising from a “disease or from fear or threat of the emergence of a disease”.