The Central Bank is preparing a draft instruction to extend the tariff corridor and confirm that it will be submitted to the Ministry of Justice for registration in due course. In the meantime, several media outlets have claimed that the new rates have taken effect since August 1. That is not accurate.
Information from a number of media sources about the entry into force of new OSAGO rates as of August 1 does not reflect reality. The draft instruction from the Bank of Russia on extending the tariff corridor, published on the bank’s website on June 22, will soon be transmitted to the Russian Ministry of Justice for registration, according to the regulator’s statement.
The rates will be increased eventually, but the correct procedure must be followed. After the instruction passes state registration, it will be posted on the Bank of Russia website and, by law, will come into force ten days after official publication.
On June 22, the Bank of Russia proposed widening the OSAGO base rate corridor for most categories of car owners by up to twenty-six percent in both directions.
For private vehicles, insurers set the base rate for the autotariff on a per-driver basis within a range of 1,646 to 7,535 rubles. For public transport, the tariff corridor would expand by 17.8 percent in both directions.
The regulator explained that the changes are driven by rising costs for spare parts. Parts that are most frequently involved in accidents have increased in price by an average of 28.7 percent, according to updated spare parts guides from PCA. Insurance compensation is calculated based on these guides, the regulator notes.
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