Osago Policy Changes and Technology in Auto Insurance
The Russian Association of Motor Insurers, known as RSA, notes a fundamental issue with the current Osago system. It is argued that once Osago is issued, it is not possible to detach the registered driver from the vehicle. This principle anchors the way policyholders are identified and verified across the country.
Recently a draft law was presented to the State Duma proposing a shift in choice for car owners. Instead of a single option, owners would be allowed to select either personal civil liability insurance or car liability insurance. This proposal has sparked debate about its potential effects on fleets, as well as on the capability to verify policy coverage when automatic enforcement cameras become more common. The PCA has voiced concerns about policy availability checks in such a system.
Individualization of Osago is already advancing through reforms in how policies are priced. The central factor influencing the cost of mandatory vehicle liability coverage appears to be the driver’s anticipated accident rate rather than the vehicle model itself. This insight comes from the RSA and highlights the move toward risk-based pricing that weighs driver behavior and history more than the car type.
If the proposed law passes, it could hinder the ability to determine whether a vehicle holds an Osago policy using camera-based tracking. Cameras are expected to be deployed soon, aiming to verify compliance and coverage in real time as drivers share the road with automated enforcement technologies.
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Source: Russian newspaper