ACHIEVEMENTS OF STATE INSURANCE IN BULGARIA DURING THE DIMITROV FIVE-YEAR PLAN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81-00280R000100070074-6
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 4
• Document Creation Date: December 22, 2016
• Document Release Date: April 11, 2011
• Sequence Number: 74
• Publication Date: September 28, 1956
• Content Type: REPORT

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 ACHIEVEMENTS OF STATE IMMOMS IN WLOAAIA
DURING TNS DIMILIM -
nasal I )Credit iFinances and Credit),
No 9-10, 1953, Sofia, Paps 31.34
In his report to the Second Congresc of the Fatherland Front held in
1948, Oeorgi'Diaitrov stated the following regarding"insurance: "The State
Insurance Instituto, which was created with t 1w nationalisation of the
existing insurance campsites -- Sulgar an and foreign -- freed the Bul-
garian people from cruel -plunder, and remanded and cheapened insurance. The
funds at the disposal of?them* enterprises, flick amounted to 3 billion
lava, were placed at the disposal of the. Ralgarian economy. Now thi fund
is growing, and will soon reach about 10 billion lava.
The geiheral tasks given to us by oar teacher and leader opened vp now
perspectives for the development of state iasurance during the' years of the
Dimitrov Five-Year Plan. A large part of them were fulfilled during the
period of that Five-Year Plan, and the.remaining'part is being fulfilled
during the Second Five-Year Plan.?
The more important: achievements of state insurance during the years
of the Dimltrov Five-Year Plan are the following.
During the period between 1949 and 1952, the insurance fund considerably
increased, as a?result of which state Insurance ?was strengthened. During
1952 this fund was 2.22?cimes greater than the 1948 fund. This increased
fund covers risks from acts of God and accidents of over 1.5 million public
and private farms, and carries life insurance for over 1.4 million people.
The sphere of action of state Insurance has increased considerably,
as a result of which 2.24 times more insurance presiuas were collected in
1952 than in 1948. If vie considor?the premiums collected in 1948 as 100
(converted into the new ?1952 currency) the percentage of premiums collected
during the years of the Dimitrov tine-Tear plan are as follows: 1949-141.6,
1950-169.1. 1951-201.5,. and 1952-223.7. This quickened tempo in the develop-
ment?of state insurance.corresponds?to the rapid tempo of the, development
in industry, agriculture, transportation, and the turnover of goods, as
well as to the increase, in the natiognl income and the improved material
and cultural situation of the working people during the iimitrov Five-
Year plan.
The great changes which occurred in agriculture during the Five-Tear
plan, with the coonerativization of 60% of the arable land, gave a strong
push to the development of state insurance.
In 1952 compulsory?and voluntary property. insurance covered 84% of the
sown areas and perennial crops, and 81% of all large-horned and solid-hoofed
animals.
Thus almost all of! the properties of the?TIZS (Trudovokooperativao
zemedelsko stopacstvo, Farm Workers' Cooperative), the cooperatives, public
organizations, housing. funds.. and the larger part of the property of state
enterprises and administrations, as well as all citizens buildings and
2 larger part of their agricultural crops and animals, were insured in
1952. Almost all imporis and part of the exports, as well as?the majority
of the freight tauled within the country, were insured in 1952 against
transportation risks. As a result of this increased insurance, property
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insurance premiunS in 1952 were 2.2 times as high as in 1948.
By the end. of 1952 one out of every 5 persons carried life insurance.
In 1952 all regular travelers, as wall as the maintenance and operation
personnel of public transportation media (except for streetcars and trolley
buses) were insured against accidents.
This great oxpansion of insurance was achieved thanks to the new law
for compulsory property insurance,?which use put into force in 1952, and
the decree on compulsory travelers. Insurance, as well as the new require-
ments and rules for the voluntary insurance of crops, livestock, buildings
and mobile property, established in 1952. on the basis of the rich Soviet
experience of the Soviet in the field of insurance.
By the and of the year the State Insurance Institute had begun the
drafting of new 'rules regarding life and transportation insurance, which
were approved by the Minister of Naance in 1953, and are beginning to be
applied. ?
Implementing G. Dinitrov's instructions for providing expanded and
cheap insurance protection, the State Insurance Institute has included in
its operation new risks and has reduced some premiums and made other poli-
cies self-supporting. Thus, insurance 'on buildings, installations, equip-
ment, and goods, as well as the risks of explosion, storm, hurricane, tor-
rential rain, landslides, and bail were added to the fire and thunder risks
which were covered in 1948. Despite-this increase in risk coverage, prem-
iums on this kind of insurance have been considerably lo?'ered. In 1952
,they were about 5O'1'lover than in 1948.? ? ?
?
?
In the insurance of agricultural crops,?the risks of storm, torren-
tial rain, and fire before harvesting wore added to the risk of hail. The
premiums on this kind of insurance became self-supporting.
U
In livestock insurance, the risks of disease, accident, and compulsory
slaughter ie n augmented by the risk of compulsory slaughter required for
the prevention of cpizootics. In addition. since 1952 the institute has
been paying insurance on voluntary insurance of livestock in full, without
deducting 30% for the participation of the insurers in the' insurance ' risk:
In 1952 the premiums for compulsory insurance of rivestock were 20.3%
lower than those in 1948. and the prviuas for voluntary insurance became
self-supporting. ?
J ?
More categories of risks were as '.rd In the insurance of transporta-
tion of goods and media of transportati. . The risks included coverage of
damages?incurred in the unloading of goods, crane operations, and hauling
from one warehouse to another. In 1952 the premium for transportation
of goods within the country and coastal transportation were 51% lower than
1948. and an 'average of 48.1% lower for transportation abroad (import and
export of goods). The premiums for the insurance of ships and planes were
reduced by an average of 27.6%, for motor transportation by 42%, and for
heavy agricultural machinery by 591. Since 1 July, 1950,, life insurance
has included the risk of Pere.anedt disability. as a result of which then
has been a,2% indirect reduction of premiums, and in 1952 the premiums
for accident insurance were 32.5% lower than in 1948
These achie.eoents in the premium policy of the institute have been
possible because thc? cost of insurance has been lowered, due to 2 main
reasons: (1) damage from acts of God and accidents to insured property
has been considerably limited and reduced as a result of increased vigil-
ance on the part of the working people, aimed at safeguarding state,
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cooperative, and private property: and (2) the administrative expenses of
the institute have been considerably reduced,
During the 1049-195? period the institute paid property and personal
insurance compensation in time course of the fulfillment of its major tasks
of 321,880.000 leva (calculated according to the new 1952 currency). Com-
pensation was paid to 29G.426 farm for crops damaged by hail and other
acts of God, totalling 112,175,000 lava. During this period the Farm
Workers' Cooperative alone received for damage to agricultural crops
63,654,000 leva, while 77,214,000 love were paid as compensation for
218,622 dead or compulsorily slaughtered animals. Furthermore 88.665.000
lova were paid out on life insurance policies, and so forth.
With these considerable funds the institute helped public and private
faros to strengthen their production processes, thereby contributing to
the general upsurge of the people's economy.
In 1952 the administrative expenses of the State Insurance Institute
were 11.1% of the total sun of premiums collected, as compared to 19.5%
for 1948. which represents a reduction of about 43%.-This reduction was
achieved by eliminating excessive commission fees paid to the insurance
workers, and by reducing other expenditures of the institute. As a result
insurance protection became cheaper.
The State Insurance institute also participated 'iintheapprotection
19~c?-
measures undertaken by the state. by granting
1952 for fire prevention measures and for thn struggle against animal and
bee mortality. In addition to thcae subsidies, the ins-titute spent an
additional 5,515,000 lova on medical treatment for insured animals.
The expansion of insurance operations and the loacring of the cost
of operations has had a favorable influence on the financial stability
of the institute. On 31 December 1952 its reserve fund was 1.9 tines
as large as on 31 December, 1948. and its reserve fund for life insurance
was 2.5 times greater. The large increase in the life insurance reserve
is due to the fact that in 1950, the institute took over the insurance
funds of the former administration and trade union funds.
lit 1948 the State Insurance Institute undertook the building of its
new organizational structure by establishing branches in all okoliya cen-
ters with a view to bringing insurance operations closer to the objects
and the insured, as well as to furnish speedier service for the insured.
This work continued until 1952, and during that time the institute com-
pleted the decentralization of its services, with the exception of cer-
tain activities related to life insurance, which are being decentralized
in 1953.
The branc:?.cs of the institute are already estab:ished as operative
units capable of carrying out st:te insurance operations.
By the end of 1952 the Presidium of the rational Assembly had
approved the new statutes of the State Insurance Institute which re-
placed the old insurance laws. These statutes, based on Soviet insurance
experience, provided the necessary prerequisites for the State Insurance
Institute t" move ,nto the Second Five-Year Plan with clearly defined
basic tasks and a nos n,'ganizational structure which is a guarantee
that state insurance Niel achieve new successes in connection with the
development of the peoples economy and the sharp improvement of the
material and ci'lturnl situation of the working people.
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