LDPR deputies are drafting bills on binding the OSAGO policy to the driver and removing the coefficient of wear and will submit them to the lower house of the Russian parliament by the end of 2022. Yaroslav Nilov, deputy head of the faction in the State Duma, told socialbites.ca about this.
The main innovation in OSAGO, proposed by the deputies,
It allows vehicle owners to decide for themselves whether to bind the OSAGO policy to their car or to the driver, depending on the particular situation or economic benefit.
“For example, a family has several cars and a driver. Why does he need to issue OSAGO for each car if he can issue a policy for himself? And vice versa – when there is a car and many family members who drive it. For example, there is a driver-dependent OSAGO in neighboring countries.”
According to Nilov, the same package will draft a law on the exclusion of the depreciation factor when indemnifying under OSAGO. Because of him, former car owners receive insufficient compensation. While insurers explain this by the fact that parts on these cars are subject to a lot of wear and tear, the insurance business does not take into account the fact that such car owners pay less for insurance than new car owners.
In this direction, we are preparing draft laws. They will be proposed to deputies for consideration before the New Year,” Nilov said in an interview with socialbites.ca.
According to him, the OSAGO law has been rewritten for insurers and does not take into account the interests of drivers. The MP says that insurance companies are looking for ways not to pay compensation for accidents, and they constantly try not to accept accidents as insured events. Nilov notes that insurers are constantly weighing whether it is more profitable to send the car for repair or to pay a small amount for the driver to fix the car himself.
“Insurance companies constantly whine, declaring that their business is unprofitable, but at the same time they do not leave the market. If you’re whining, leave.
There will be two or three big companies that will be interested in this field. Let the rest stop serving, there will be even more order,” he said.
where is the money going
Last week, lawmakers from another Duma faction, A Just Russia – For Truth, appealed to the Attorney General’s Office with a request to check how insurance companies manage unused money to recover damages in insurance cases. knowledgeable The newspaper “Izvestia”.
The fact is that according to the federal law “in OSAGO”, 77% (loss rate) of the funds collected under OSAGO should be directed to payments to car owners,
however, throughout the history of the auto-citizen, the level of payment of insurance companies has never fallen below 59-62%.
Lawmakers had the question of where the excess profits from selling policies went all these years, and why that money wasn’t used to cover the increase in payment costs, and instead the Federal Reserve raised tariffs twice in 2022. expansion of the residential corridor.
“Where are these tens of billions of rubles going? How do insurance companies spend them? At the expense of this money, you can pay fines, legal costs, etc. from lost court cases. They say they’re welcome. But they have 20% for the implementation of insurance activities.
All problem areas and all your lost courts, all inadequacies can and should be paid for from this 20%, ”said Sergey Mironov, head of Just Russia – For Truth, in an interview with socialbites.ca.
He noted that there has yet to be a prosecutor’s response to the party’s appeal – by law the chamber has one month to consider the matter and decide whether there is a basis for prosecution intervention measures. Mironov emphasized that the faction will also advocate the rejection of regional multipliers and the power factor of cars.
“Let me remind you that the legislation on OSAGO was passed a long time ago, almost 20 years ago. At that time cars had a completely different power. Then a 200 hp machine. it was unusual, almost a sports car. And now it’s largely a standard mid-range sedan, ”Mironov said.
He also noted that the party does not see the need to increase tariffs, since the OSAGO system has large internal reserves worth tens of billions of rubles.
The Central Bank did not immediately respond to socialbites.ca’s request for comment on deputies’ claims regarding OSAGO’s work. Insurers, on the other hand, believe it is incorrect to compare the annual fees under OSAGO with the amounts of payments in order to conclude whether the system is working effectively and whether the owners are getting paid adequately.
The Russian Association of Motor Insurers (RSA) told socialbites.ca that payments under contracts lagged behind on-time wages:
The insured event under the contract occurs during the policy term, is not necessarily at the beginning, and the compensation procedure takes some time. In addition, the average payout increases sharply from quarter to quarter. To assess the “actual loss ratio” of insurance, the PCA recommended using what is called the moving combined loss ratio.
Useful Ideas
The Liberal Democratic Party’s attempt to link the OSAGO policy to a driver or car involves a complete change to the entire insurance system. Anton Shaparin, vice president of the National Automobile Association (NAS), says choosing an appropriate profile to use the policy will allow to save money, but the idea will not be easy to implement.
“This is a good story, but it will most likely not be accepted because insurers will definitely oppose it, because then they will have to learn to work normally and flexibly.
They can no longer cancel the contract by eliminating even the smallest mistakes in the implementation of the policy made by the person. Customer orientation levels are negative. Such a flexible OSAGO model cannot exist in such a system,” says Shaparin.
The NAS vice president believes that the model for using coefficients in calculating OSAGO is very old and needs to be thoroughly reworked.
“The depreciation factor is only used to reduce the amount of the OSAGO payment,” Shaparin says. “We have long concluded that there are no repairs under OSAGO – they pay in cash.”
According to him, the Central Bank is applying a new methodology that allows the use of the cheapest Chinese analogues for calculations, which are up to 80% cheaper than spare parts in the PCA catalog.
“We divide by two – the coefficient of old cars – as a result, a person receives money for a skein of blue electrical tape instead of compensation”
Shaparin concludes his speech.
There were two increases in the tariff corridor this year, in January and September. Serhiy Radko, a lawyer for the Freedom of Choice movement, believes that the trend of inflating the cost of OSAGO policy will continue.
“The problems with the supply of spare parts and logistics have not been resolved. Maybe in a year and a half the situation will improve, then there will be prerequisites for the tariffs to remain the same. It is difficult to say at what cost this conditional stability can be achieved, perhaps we will all have to pay quite a lot for it,” Radko says.
The average cost of an OSAGO policy in Russia increased by 10%, following the expansion of the tariff corridor by 26%, which took place on September 13, reported “socialbites.ca” in RSA. The motorists themselves note a much more significant increase in price. So, a resident of Surgut (Khanty-Mansi Autonomous Okrug) said that insurance for a Volkswagen Golf (140 hp) cost him 24 thousand rubles for a year. 1.17, taking into account the personal coefficient “bonus-malus” (CBM). A year ago, a similar compulsory insurance for his car cost about 15 thousand rubles.