Insurer Obligations and Repair Procedures Under OSAGO Policies
The duties and responsibilities connecting insurers and vehicle owners in the repair process should be clearly defined within the insurance contract. In coverage of this topic, reports from RIA Novosti cite Evgeny Ufimtsev, head of the Russian Association of Automobile Insurers, who emphasizes that clarity is essential to prevent a rise in unresolved repair disputes.
Ufimtsev notes that currently an insurer must strike a formal agreement with a service station that undertakes vehicle repairs. This station should complete the repair within a defined period and take responsibility for the quality of the work. If the chosen station lacks certain parts required for the repair, the insurer pays only for the repairable components, excluding wear and tear, and the owner should not bear additional costs for degraded parts. This framework is intended to standardize expectations and encourage timely service delivery while maintaining quality control.
He explains that insurers have developed a proposal allowing vehicle owners to present their own preferred service station if the insurer does not own an affiliated one. In such cases, a separate contract is established between the owner and the chosen station, and the insurer covers the cost of repairs under this arrangement. The approach aims to offer greater flexibility for customers while preserving a defined payment structure and service standards.
When a repair is needed but the required parts are not available at any station in the insurer’s network, the insurer is obligated to arrange payment for the repair while excluding wear and tear. Ufimtsev mentions that amendments to the law governing compulsory motor liability insurance are already being prepared to reflect these updated practices and ensure a consistent, predictable process for both insurers and policyholders.
Earlier, Ufimtsev referenced a proposal from the National Automobile Union to align tariffs with a single OSAGO policy structure, following rate schedules currently used for compulsory auto insurance in Belarus. This suggestion signals a potential shift toward harmonized pricing across regions, with an emphasis on simplified policy terms and clearer cost expectations for drivers and insurers alike.
Additionally, plans exist to automate the verification of compulsory insurance coverage through the use of video cameras starting in 2024. In this system, fines per day would not exceed a capped amount. It is important to note that the policy check would target vehicles where drivers commit traffic violations—such as crossing at red lights, improper maneuvering at intersections, or exceeding speed limits—rather than all drivers indiscriminately. The goal is to deter violations while maintaining fairness and privacy considerations for compliant motorists. [cite: RIA Novosti]
There have also been cautions voiced by Russian motorists about the potential risks associated with taking out a CASCO policy. Perspectives shared in public discussions highlight that while CASCO can provide broadened protection, it also introduces considerations such as coverage limits, exclusions, premium costs, and the impact of deductibles on the total claim value. These points underscore the importance of a clear, well-understood contract and informed decision-making when selecting coverage options. [cite: RIA Novosti]