Cheap Bulgarian car insurance proves a trap as insurer fails to pay claims

A Bulgarian insurance company, DallBogg, has trapped approximately 250,000 customers in Poland by offering exceptionally cheap compulsory third-party liability (OC) insurance policies, with prices as low as 300 Polish zloty. However, drivers who have filed claims are now facing serious problems getting paid.

The company, Insurance JSC "DallBogg: Life and Health," initially thrived in the Polish market due to its aggressive pricing. Problems emerged when policyholders began reporting damages caused by drivers insured with DallBogg. Customers complained about difficult communication and the company's lack of a significant presence in Poland. Furthermore, claims were often undervalued or outright rejected.

In response to the growing number of complaints, Poland's Financial Supervision Authority banned DallBogg from issuing new OC policies starting April 17, 2025. Existing policies sold before April 16 are valid until April 15, 2026. Despite these measures, an estimated 5,000 to 12,000 claims are still awaiting settlement. The Polish Financial Ombudsman received 371 intervention requests concerning DallBogg in the first half of the year, but assisting claimants is complicated by the fact that the insurer is a foreign entity.

Adding to the complexity, Bulgaria's financial supervisor revoked DallBogg's operating license on June 9, 2026, citing insufficient capital. The company's proposed recovery plan was deemed unrealistic. Paradoxically, the insurer's potential bankruptcy could benefit some Polish claimants, as the Polish Guarantee Fund would take over claim settlements for those who have reported damages and have not yet initiated legal proceedings. However, cases already in court may face more complicated cross-border recovery procedures.