MOSCOW, March 17. /TASS/. The State Duma adopted in the third and final reading a law establishing the main form of compensation under compulsory motor liability insurance in the form of car repairs instead of cash payments. The law applies only to individuals.
The law must come into force 30 days after official publication and apply only to new MTPL agreements. According to the text of the document, payment under compulsory motor liability insurance will by default be made in the form of car repairs.
The law adopted by the lower house of parliament provides that funds can be obtained only in exceptional cases - this is the complete loss of the car, the cost of repairs exceeds the compensation limit under compulsory motor liability insurance (400 thousand rubles), if the victim does not agree to pay extra. In addition, the payment will be monetary in the event of the death of the victim in an accident or the infliction of serious or moderate harm to his health. Disabled people can also apply for cash benefits. The payment may be in money and on the basis of an agreement between the victim and the insurer.
In addition, the car owner will be able to demand money if the insurance company cannot organize repairs in a service that meets all the requirements that the law imposes for compensation “in kind.”
“The committee finalized the bill in such a way as to maximally protect the interests of Russian motorists and at the same time solve the problem that was voiced during the consideration of the bill in the first reading, concerning the activities of unscrupulous so-called auto lawyers,” commented the chairman of the State Duma Committee on the Financial Market, Anatoly Aksakov, on the legislative initiative.
Repair requirements
In accordance with the provisions of the law, repairs under OSAGO will need to be done only with the help of new spare parts, unless the car owner himself agrees to used or refurbished parts. The repair period should not exceed 30 working days. The car service must be located no more than 50 km from the scene of the accident or the victim’s place of residence.
It is assumed that the victim will choose a repair station, but from the list of his partners proposed by the insurer. The law leaves the car owner the opportunity to repair the car at a station with which the insurer does not have an agreement, but only with written agreement with the insurance company.
For cars under two years old that are under warranty, the insurer will have to arrange repairs from an authorized dealer. If there is no suitable station in the list of partners of the insurance company, and the car owner does not agree to another workshop, then the payment will also be in money.
The warranty for repairs will be six months, and for body and paint work - 12 months. The insurance company will be responsible for repairs. If the insurer receives many complaints regarding the organization of repairs, the Bank of Russia will be able to limit the company’s right to compensation in kind, and the insurer will pay the victim in money.
According to the new rules, with an in-kind payment from compulsory motor insurance, the victim will not have to pay extra for wear and tear of spare parts (replacing old parts with new ones). In case of monetary compensation, the difference in the cost of a new and used part (wear and tear), just as now, will be deducted from the payment.
The law also provides for the extension of the direct damages system (DCL) to collective collisions (more than two cars). PPV means that the victim under compulsory motor liability insurance applies for payment to his insurer, and not to the insurer of the culprit, and then the insurance companies pay each other.
Compromise version of the law
The text of the law differs significantly from the original version of the document. The details of the MTPL reform caused a heated discussion among deputies, representatives of the Central Bank, the government, the insurance market and the expert community.
The original bill, introduced by A Just Russia deputy Mikhail Emelyanov, implied that the insurer, and not the car owner, as now, would choose the method of compensation under compulsory motor liability insurance (repairs or money). By the second reading, deputies and experts came to the conclusion that repairs would be done by default, with the exception of a number of specified cases.
In addition, in the revised version of the reform, the requirements for organizing repairs were expanded, in particular, a clause on new parts appeared and the permissible distance to a car service was clarified (according to the previous version, it could reach up to 200 km).
The timing of the law's entry into force caused a separate discussion. Initially, the relevant committee of the State Duma, at a meeting on February 21, approved amendments to the second reading, according to which it was assumed that in some regions the law would have retroactive effect and apply to all MTPL policies, including those purchased before its adoption. However, at the committee meeting on March 9, the retroactive rule was canceled - the law will only apply to new contracts.
This is very important so that the insurers themselves, service stations, and the Central Bank can smoothly transition to a new form of compensation for damage, Chairman of the Financial Market Committee Anatoly Aksakov previously explained to reporters.
The main goal of the MTPL reform is to overcome the unprofitability of the “automobile insurance” provoked by unscrupulous auto lawyers in a number of regions, which has led to the unavailability of compulsory policies.
Motorists in the Russian Federation are trying to understand the terms of the new legislation and understand what will bring them compensation in kind under compulsory motor liability insurance. , introduced instead of monetary compensation.
What it is
The change in insurance conditions means that owners of passenger cars injured in road accidents will be offered compensation in kind in the form of repairs to the damaged car instead of a cash payment.
This bill was created on the initiative of auto insurers, who in recent years have been suffering significant losses instead of the expected profits. The initiators themselves explain the sad results of their activities by the activity of the emerging group of auto lawyers who, through the courts, recover significant amounts from insurance authorities.
In the new legislation, priority is given to avoiding monetary compensation, i.e. Now, as compensation, the applicant receives a referral for repairs to one of the auto repair shops, where he receives services within the amount of the insurance compensation.
Insurers benefit from the fact that they will not pay inflated claims of victims or intermediaries represented by auto lawyers.
For victims, the benefit is that they receive repairs paid for by insurance, the duration of which is limited to 30 days, and will not have to defend their interests, seeking an adequate amount of compensation.
Car enthusiasts are promised several more advantages:
- examination and assessment of the damage incurred will be carried out without taking into account the wear and tear of the car;
- the choice of service station is made by the victim himself from the proposed list or he offers his own option;
- compensation will be made not only for a collision of two or more cars, but also for other types of accidents;
- The list of workshops must necessarily include services that have the right to repair machines that are under warranty.
The first year of the law's operation will show how well all this will be justified in practice.
How to get a refund
There is a certain list of cases when the victim or the perpetrator of an accident can receive monetary compensation.
In monetary terms, compensation is issued:
- if it is impossible to restore the car, i.e. when it is maximally damaged;
- if the driver was killed or seriously injured as a result of the accident;
- disabled people of the first and second categories.
Amendments to the first version of the law also provided for two more opportunities to receive insurance compensation in cash:
- the cost of repairs exceeds the maximum amount of possible compensation currently established;
- the insurance organization cannot organize repairs at the station that was offered to it and was chosen by the policyholder.
Requirements for services and insurers
The law provides for a number of requirements for insurance organizations and car services that they must fulfill if they are going to work within the framework of the law.
Insurers are obliged
- offer workshops located no more than 50 km from the scene of the accident or the address where the injured person lives;
- if it is not possible to offer such a workshop, and the applicant agrees to a more distant option, then the insurance company is obliged to pay for transportation of the damaged car to the workshop;
- pay a penalty to the victim for each day of delay, since the deadline for repairs is 30 days. The amount of the daily penalty is half a percent of the total amount of compensation.
Also, insurance organizations are theoretically obliged to control the quality of repair work and exclude unscrupulous services from their lists, since all responsibility for the results falls on them, and not on the repairmen.
The liability procedure is not only about paying compensation. If numerous complaints arise, the insurance organization may lose the right to in-kind compensation for one year and will be required to make cash payments. This decision regarding insurance organizations must be made by the Central Bank.
The latest amendments to the law put forward a number of requirements and conditions for car services that will carry out repairs with payment for the work from insurance organizations. All these requirements are aimed at protecting the interests of customers:
- During repair work, it is prohibited to use used parts, i.e. In case of severe damage, the owners of old cars benefit the most;
- For each repaired piece of equipment, repairers are required to provide a warranty for six months or a year, depending on the operation;
- Repairs must be completed within 30 days, regardless of the level of complexity and condition of parts.
On the one hand, the presence of an agreement with an insurance organization provides the auto repair shop with permanent work, and on the other hand, it transfers all its activities to non-cash payments, which not all entrepreneurs who are accustomed to working for cash are ready for.
When can you refuse the service?
Since April 28, compensation in kind has become the predominant option for providing an insurance policy, but the law leaves customers the opportunity to refuse this imposed service and receive monetary compensation.
In addition to the previously listed options for compulsory payment of insurance in cash, the policyholder may refuse repairs in the following cases:
- the insurance organization cannot provide him with a service station capable of performing repairs in accordance with the procedure established by law (in compliance with deadlines, quality and maintaining insurance);
- a written agreement has been reached between the client and the insurance company to waive in-kind compensation.
The second option is not beneficial for owners of non-new equipment, since the depreciation of the car is taken into account when calculating and paying compensation, and the amount of insurance compensation is significantly reduced. When sending for repairs, vehicle wear and tear is not taken into account.
Changes in tariffs for compulsory motor liability insurance
The expected change in tariffs for compulsory motor liability insurance did not happen this year, but ideas about future liberalization of tariffs are being circulated in the press and in legislative circles, i.e. insurance organizations will have the right to change tariffs at their discretion.
Video: New rules for obtaining damage compensation under compulsory motor liability insurance
The head of state, Vladimir Putin, signed the Federal Law amending OSAGO insurance. The document on so-called payments in kind was adopted by the State Duma on March 17, 2017 in the last (third) reading and approved by the Federation Council.
In accordance with the new legislative act, payments under compulsory motor liability insurance to affected car owners are by default replaced by car repairs.
Cash will be transferred only in specific, exceptional cases, namely:
- complete loss of the car;
- death of the victim;
- causing serious or moderate damage to health;
- the cost of repairs exceeds the compensation limit under compulsory motor liability insurance (400 thousand rubles), if the victim refuses to make an additional payment.
The legislative act comes into force 30 days after official publication and affects exclusively new MTPL agreements. As for insurance policies already in force at this time, the rules for them will remain unchanged.
How to get a refund
Injured owners of previously concluded contracts do not have to worry - if they receive damage during a traffic accident, they have the right to claim monetary compensation. There is only one condition - payment is made taking into account the wear and tear of parts and mechanisms.
When can I receive monetary compensation when concluding new contracts? In some situations this is possible, for example:
- disabled people can demand payment;
- upon agreement between the victim and the insurance company;
- if the insurer is unable to offer the victim a repair station that meets the latter’s requirements.
The Central Bank's warning concerns insurers who are unable to fulfill their obligations to clients and organize restoration. In such cases, the regulator has the right to take extreme measures and suspend the ability of insurance companies to send cars for repairs. In this case, the insurer is forced to compensate the victims with monetary funds.
Requirements for compensation in kind
The victim will be able to restore the car after an accident at the direction of the insurance company, but a number of requirements must be met:
- Convenient location of the service station - no more than 50 km from the place of the accident or the victim’s place of residence. The exception is when the insurer organizes and pays for transportation of the damaged car to the place of repair.
- The minimum warranty period for restoration work is six months, and for body and paint work is at least a year.
- No more than a month is allowed for repair work from the date of delivery of the vehicle to the service station.
- When restoring a car, the restoration is carried out without taking into account wear and tear, using only new parts. The exception is cars for which finding new spare parts is problematic, and coordination with the insurance company in such cases is mandatory.
- Repairs of new cars, not older than two years, are carried out at dealership centers.
The choice of service from the list proposed by the insurer is provided to the victim, but the car owner has the right to insist on his own individual option. In such circumstances, the insurer must give written consent.
The insurance company is also responsible for failure to meet deadlines and poor quality of repair work. In monetary terms, it looks like this: 0.5% of the amount of damage for each subsequent day of delay.
Why will MTPL tariffs change?
According to insurance companies, it is necessary to review the cost of compulsory motor liability insurance in some regions - increase or decrease. A similar assessment of the Russian Union of Auto Insurers was presented by the executive director of RSA at an insurance conference. Based on the situation in the regions, an increase in the territorial OSAGO coefficient can develop according to three scenarios:
- when the unprofitability of the “motor citizen” remains approximately at the same level;
- when unprofitability continues to grow due to dishonest actions of intermediaries;
- intermediate position between the above scenarios.
The maximum increase in the territorial coefficient, according to the union, is expected in the following cities:
- Volgograd - in accordance with different scenarios, 4.41-6.5 times;
- Ivanovo - 2.94-3.38 times;
- Rostov-on-Don – 2.77-3.23 times;
- Krasnodar – 2.47-3.02 times;
- Ufa – 1.72-2.02 times;
- Chelyabinsk and Murmansk – 2-2.26 times;
- Ulyanovsk - 2.78-3.58 times;
- Kazan - 2.06-2.3 times;
- Nizhny Novgorod - 2.26-2.68 times.
At the same time, in some regions, the situation associated with the unprofitability of compulsory motor liability insurance makes it possible to reduce the territorial coefficient. For example, in the capital, coefficient 2 can be reduced to 1.77-1.96, and in Gorno-Altaisk - from 1.3 to 1.12-1.24.
The situation in the cities of Izhevsk, Perm, Cherepovets, Kemerovo, Kursk, Veliky Novgorod, Novosibirsk, Tyumen and the Moscow region, according to RSA calculations, allows for a slight increase in the coefficient.
The territorial coefficient is one of the main parameters influencing the premium for compulsory motor liability insurance. The final cost of compulsory motor liability insurance is calculated as follows: the coefficient is multiplied by the base tariff established by the Central Bank in the corridor from 3,432 to 4,118 rubles. In total, eight coefficients are used for compulsory motor liability insurance, and it is also determined by the Bank of Russia. The highest is currently applied in Chelyabinsk and Murmansk (2.1), and the minimum is applied in Crimea (0.6).
At a meeting on Friday, the State Duma adopted in the third reading a law on the priority of repair work over cash payments in compulsory motor insurance (OSAGO). At the same time, the document defines cases when a citizen will be able to receive monetary compensation instead of repairs.
According to the law, in the event of an insured event, repairs can be carried out at a station from the insurer’s register or at a station chosen by the citizen after its approval by the insurance company. Only new parts must be used during repairs, unless the policyholder has given his consent to the use of used parts.
The service station (STS) must be located no further than 50 km from the scene of the accident or from the citizen’s place of residence, except in cases where the insurer has organized and paid for the transportation of the damaged car to the place of restoration repairs. New cars, no older than two years, will have to be repaired at service stations of official dealers, notes "Interfax" .
The warranty period for restoration work on a damaged vehicle is six months, and for body work and work related to the use of paint and varnish materials - 12 months.
The maximum repair period is no more than 30 working days from the date the vehicle is presented to the service station. If these terms are violated, the insurer pays the victim a penalty in the amount of 0.5% of the amount of insurance compensation for each day of delay. The law also establishes the right of the Bank of Russia, in the event of repeated violations by the insurer of its obligations for restoration repairs, to prohibit the insurance company from providing compensation in kind for a period of up to one year.
According to the new rules, with a payment in kind from compulsory motor liability insurance, the victim will not have to pay extra for wear and tear of spare parts (replacing old parts with new ones). In case of monetary compensation, the difference in the cost of a new and used part (wear and tear), in the same way as now, will be deducted from the payment. The law also provides for the extension of the direct damages system (DCL) to collective collisions (more than two cars). PPV means that the victim under compulsory motor liability insurance applies for payment to his insurer, and not to the insurer of the culprit, and then the insurance companies pay each other, TASS notes.
The document defines cases when a citizen will be able to receive monetary compensation instead of repairs. In particular, financial payment is possible in the event of the complete loss of a car, death or serious harm to the victim, in the event that the damage exceeds the maximum amount of compensation established by compulsory motor liability insurance of 400 thousand rubles, and also in the event that the victim is disabled.
It is expected that the Federation Council will consider amendments on payments in kind to compulsory motor insurance at its next meeting on March 22.
The law will come into force 30 days after its official publication. The provisions of the law will apply to compulsory insurance contracts concluded after the date of entry into force of this law. It was previously assumed that the law could come into force.
The State Duma of the Russian Federation adopted a law on the priority of payments in kind (repair of a car involved in an accident) over compensation in cash. You can read more about this in the website previously published on the pages of the Information Internet Edition:
Thus, after the adoption of the law, insurers will provide a referral to a technical center for restoration of damage. According to the idea of the deputies, this should help in the fight against unscrupulous auto lawyers and the unprofitability they provoke in the compulsory insurance sector in some regions of the country.
The main changes in the second reading in the law on compulsory motor liability insurance were:
Maximum period of restoration repair. 30 days from the date of delivery of the vehicle to the technical center
Monetary compensation will remain, but its application will be clearly defined. Such exceptions include: causing grievous/moderate harm to health or death of the victim. Disabled people of groups I and II will also receive monetary compensation.
Impossibility of carrying out restoration work (the car was completely destroyed due to an accident), the cost of repairs exceeded the MTPL payment limit of 400,000 rubles.
And finally, if the insurer is unable to carry out repairs at the service station, the car owner will also be able to demand reimbursement of the cost of payment in kind in cash.
Important! The priority of compensation in kind under compulsory motor liability insurance will apply only to NEWLY concluded contracts.
Also in our article we focused on a number of other important features of the adopted law.
When carrying out restoration repairs, new parts will be used, this is reflected in the law. After the restoration of a car that has been in an accident, a warranty will apply (6 months for all types of work, 12 months for body work, etc.).
The maximum distance at which you will have to be must not exceed 50 km. If the distance exceeds 50 km, the insurance company must organize and pay for transportation of the damaged vehicle to the technical center.
Read the article for answers to many other questions regarding the new law: and stay up to date with automobile legislation with