Bulgarian Financial Minister Vladislav Goranov proposed during a Monday discussion that the financial compensation on property damages after natural disasters be only applicable to people who are not financially able to pay for insurance.

The talk was regarding the role of the state and the business in the process of property protection during natural disasters.

Goranov added that the topic will remain open for discussion as owning a property is also connected to a number of obligations, and not only to certain rights, Dnevnik daily reported.

He said that in 2010 Bulgaria has implemented a 2% tax on insurance installments and added that a portion of the money could be used to finance people, unable to insure their properties. Currently, the BGN 25 M collected from the insurance taxation could be allocated to financing damaged properties in his view.

Meanwhile, the damages caused by floods in Bulgaria over 2014 have been estimated at EUR 400 M.

The floods and landslides occurring in February 2015, on the other hand, have caused damages to the infrastructure of BGN 22 M.

The Financial Minister also stated that there will be further limitations regarding illegal buildings in the endangered regions.

Mandatory property insurances are not planned at the moment.

Asked to explain the criteria regarding which household will be deemed capable of paying for its own insurance, Goranov replied that the current social assistance mechanism is effective enough.

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