CrimeaPRESS reports:
March 2, 2024 is the expected date for both drivers and insurance companies providing compulsory car insurance services. From this moment on, amendments to Articles 9 and 10 of the Federal Law “On Compulsory Civil Liability Insurance of Vehicle Owners,” which was adopted more than 20 years ago, come into force. According to the new norm, drivers will be able to apply for short-term compulsory motor liability insurance. How it will differ from a “regular” policy and who will benefit, let’s look at the infographics:
As we see, short-term compulsory motor liability insurance will be relevant for certain categories of drivers; it is for them that amendments to the Law on Compulsory Motor Liability Insurance will be very useful. Those drivers for whom a car is their main means of transportation will still be able to take out an annual policy and set a limited period of use for itsays the President of the Russian Union of Auto Insurers (RSA) Evgeny Ufimtsev.
According to the head of the RSA, it is possible to establish a limited period for the use of annual compulsory motor liability insurance in a certain season or according to other temporary criteria for a period of 3 months or more in accordance with Article 16 of the law on compulsory motor liability insurance. To do this, when applying for an MTPL policy, the driver must inform his insurance company of his desire to determine the period of use of the policy. At the same time, the cost of the policy, in addition to other coefficients, will be influenced by the seasonality coefficient (SC), which depends on the period and purpose of operation of the car.
Thus, OSAGO from three months is the same annual policy with an established limited period of validity. Its use outside the established framework will entail an administrative fine and compensation for damage after an accident by way of recourse if the driver is found to be at fault for the accident. A short-term MTPL policy is a document that can be issued for a period from one day to three months, that is, during a period that is not provided for by the limited use of annual MTPL. Previously, this was possible within the framework of annual compulsory motor liability insurance only in two cases — for the entire period of use of a car registered abroad, as well as up to 20 days in the case of purchasing a car and transporting it to the place of registration.
If we talk about the cost of a “short” compulsory motor liability insurance policy, then, as noted in the Central Bank of the Russian Federation, insurance companies will independently set the tariff of such policies, paying attention to the specific situation in which the compulsory motor liability insurance policy is issued, and using a reducing factor for the contract period, as well as traditional coefficients that also affect the price of the annual policy. Thus, the cost of compulsory motor liability insurance is influenced by engine power, the registration address of the owner of the car, as well as how many drivers are included in the policy, their age, experience, and how often they cause accidents.
The possibility of concluding short-term compulsory motor liability insurance will be for many insurers a transition to a deeper understanding of the needs of a client who, for example, will buy a compulsory motor liability insurance policy for his car on the weekend, because the rest of the five days the car is parked near the house, and he goes to work by public transport. In addition, in the context of “short” policies, we are talking about the beginning of promoting the idea of free tariff formation in compulsory motor insurance in the future for annual policies. The short-term compulsory motor liability insurance will become a trial project for the further transition to free tariffs. This will have a positive impact on motorists, given that for accident-free drivers, as part of the individualization of compulsory motor liability insurance, insurance companies reduce the premium, competing with each other,” summed up Evgeny Ufimtsev.
source: press service Information project «OSAGO: public examination»
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