08 July 2005, 10:27 Cars

The car citizen is waiting for the first upgrade

Maria Anisimova Auto insurers will have to reconsider their relationships with clients. The government adjusted the rules for concluding contracts in favor of car owners and promised to reduce tariff coefficients, simplify the rules for registering minor accidents and receiving insurance payments.

began his speech at a government meeting following the results of two years of the law on compulsory motor liability insurance Deputy Minister of Finance Sergei Shatalov with the remark that “oddly enough, 70% of motorists assess the implementation of compulsory motor liability insurance positively.” After that, he said that the Ministry of Finance considers the tariffs for auto insurance to be justified and does not recommend revising them. However, the ministry considers it necessary to increase the size of the “life and health” payment, which currently amounts to no more than 240 thousand rubles. ($7100) for all victims, and for one - up to 160 thousand. “Now, if a bus with 60 people on it overturns, 240 thousand are divided among all,” Shatalov explained. — A bill providing for an increase in compensation to 240 thousand rubles. “for every victim” is already in the State Duma and awaiting the first reading.

Shatalov noted that in Russia compensation is provided “more than in Kazakhstan, where the victim is paid $769, but, of course, less than in the European Union , where “life and health” is valued at up to $560 thousand,” that is, 78 times more expensive, than in Russia.

Prices for policies will still be reduced: it was decided to review the increasing coefficients to the basic tariffs. This should happen in October of this year, when the government corrects its decree No. 264, which outlines the calculation of the cost of the policy based on the driver’s age, his experience, the region of use of the car and its power. Moreover, first of all, the Ministry of Finance is going to reassess capacity premiums.

The Ministry of Finance also intends to simplify the procedure for registering minor accidents by excluding the traffic police from it .

“If the material consequences are insignificant,” says Shatalov, “victims will be able to contact the insurance company directly.” In addition, within a two-year period, it is proposed to switch to the “European protocol” system of insurance payments: the victim will be able to apply for insurance payments not to the company where the culprit is insured, but to his own insurance company. In this case, insurance companies will have to resolve the issue of payments among themselves. It will not be possible to introduce this system until a unified information base on compulsory insurance is ready. Otherwise, insurers will be unable to fight insurance fraudsters.

The Ministry of Finance is also going to introduce “weekend” policies and reduce the minimum insurance period, which is currently six months.

These proposals from the Ministry of Finance will be worked out in more detail by September - October. But the first thing that the government will have to revise in compulsory motor liability insurance is the insurance rules, which have caused criticism from the Constitutional Court of Russia . According to the decision of the Constitutional Court, by September 1, amendments must be made to the law on compulsory motor liability insurance in the part that allows the government to “arbitrarily determine the terms of a compulsory insurance contract.” In addition, the “Rules of Compulsory Insurance” should be changed so as to “prevent the worsening of the situation of the victim and ensure guarantees of his rights to compensation for damage.”

Thus, the finished draft resolution “On Amendments to the Rules of Compulsory Motor Liability Insurance” states that absolutely anyone can be an insured, including those who are not the owner of the car. Therefore, the rule establishing that the one who pays money for the policy is obliged to provide the insurer with a registration certificate in his name or a power of attorney from the owner will be excluded from the rules of OSAGO. In addition, it is stipulated that OSAGO does not insure the car, but the liability of its driver, therefore the insurer has the right to inspect the car before concluding a contract.

The procedure for early termination of the contract and return of the remaining money by insurers is also being clarified . Insurance companies are ordered to return the remaining money, deducting only three percent contributions to the reserve funds of the Russian Union of Insurers.

Insurers will also no longer be able to refuse payments to victims who did not contact the insurance company immediately after an accident - the clause establishing a strict five-day deadline for filing an application will be excluded from the rules. And even the failure of the insurer to receive notice from the policyholder that an accident has occurred will not be grounds for refusal to pay.

It is possible that soon it will become much more difficult for insurers to underestimate payments for accidents . The rules exclude the method of calculating car repairs “taking into account the wear of components and assemblies,” which allowed appraisers to calculate the restoration of 5-10-year-old cars in pennies. By the end of the year, the government is threatening to issue uniform rules for conducting independent technical reviews. However, most likely “all interested parties”, such as insurers and appraisers, will participate in the development of these rules. They will certainly try to make sure they don’t end up at a loss later.