New Short-Term MTPL Options Coming to Russia and Tariff Harmonization Updates
Starting March 1, Russian drivers will have the option to conclude MTPL agreements for varied durations, ranging from a single day up to three months and from three months to a full year. This change was announced by Anatoly Aksakov, the head of the State Duma Committee on Financial Markets, in the Parliament newspaper. The move follows the law adopted in August 2024, which now comes into force, expanding flexibility for vehicle insurance in Russia.
The core idea is straightforward: if a driver only needs coverage for a day, a couple of days, or a week, the insurance can be issued for precisely that period. This flexibility is expected to appeal to many people who previously avoided insurance because the cost seemed prohibitive for short-term needs. By aligning policy terms with actual usage, insurers may see increased demand for MTPL products suitable for shorter durations.
According to Aksakov, this development could also attract additional funds to insurance companies, creating new avenues for long-term investments. The broader implication is a potential shift in how the market mobilizes capital, with more stable, long-horizon funds entering the sector as insurers expand their product lineup and assess risk over longer intervals, even as they accommodate shorter-term policyholders.
In a related discussion on tariff policy, the National Automobile Association spoke on February 1 about the possibility of transferring tariffs to a single OSAGO policy that would adhere to the established compulsory traffic insurance tariffs in Belarus. The association submitted a formal objection to the Central Bank of Russia outlining concerns and expectations related to tariff harmonization and consumer impact.
What changes may mean for Russian drivers in 2024 is still being explored. The focus remains on expanding access to affordable coverage, simplifying policy terms, and ensuring that pricing reflects actual risk while remaining fair and transparent for motorists across the country. The ongoing dialogue between industry groups, regulators, and lawmakers signals a broader effort to modernize insurance offerings and make coverage more responsive to real-world driving patterns. Source: NAU