The Central Bank plans to change MTPL tariffs due to rising prices for spare parts

The corridor of the basic OSAGO tariff for most categories of car owners is proposed to be expanded by 26% up and down so that insurers can more accurately take into account the risks of car owners in the face of rising cost of spare parts, according to the website of the Central Bank.

Thus, for passenger cars of citizens, the base rate for OSAGO will be set by insurers in the range of 1,646–7,535 rubles. For public transport, the tariff corridor will expand by 17.8% in both directions.

Public discussion of the draft guidance on new tariffs will last until June 28.

The Central Bank explains the need to change OSAGO tariffs by a sharp increase in prices for spare parts. According to the Russian Union of Motor Insurers, which the regulator cites, the most “breakable” parts in case of accidents have risen in price by an average of 28.7%.

The Bank of Russia has repeatedly expanded the OSAGO tariff corridor. In September 2020, it expanded by 10% in both directions. As a result, the average OSAGO premium in 2021 increased by 1.85% compared to 2020.