New OSAGO repair cost rules take effect and affect spare parts pricing
When estimating repair costs under OSAGO, the price of analogue spare parts will be considered if the original component is not available on the market. The new rules, which come into force on September 11 this year, update the methodology used to determine repair costs and have been registered by the Ministry of Justice, with confirmation from the Bank of Russia.
The regulator notes that this approach will apply to all car brands, regardless of country of manufacture, ensuring a level playing field for all car owners. This aims to create fair conditions across the market and reduce disparities in repair pricing among different vehicle types and brands.
The Central Bank has clarified that the cost data for original parts will not be included in the official guide for calculating OSAGO payments because there are no longer any original spare parts in circulation. As a result, some insurers and policyholders may encounter practical difficulties when settling losses under OSAGO. This shift places greater emphasis on the pricing of alternative parts and the overall cost of repairs.
According to the Bank of Russia, the new approach will enable payments to be calculated with reference to the cost of analogue parts while omitting clearly low-quality or substandard components from consideration. This should improve the relevance and accuracy of compensation while safeguarding policyholders from paying for inferior parts.
Previously reported by the Central Bank, there were suggestions to broaden the tariff corridor by 26%, which would affect how repair costs are assessed and paid under OSAGO. The current changes reflect an ongoing effort to refine the framework governing insurer settlements and vehicle repair pricing, aligning them with contemporary market realities and supply conditions.