Russia Considers Extending OSAGO Repair Deadlines as Market Stabilization Measures
Auto insurers in Russia have put forward a proposal to the Bank of Russia to extend the repair timeline for OSAGO claims from the current 30 days to 60 days. This suggestion is part of a broader package of actions designed to stabilize the insurance market under sanctions pressure, a package prepared by the All-Russian Union of Insurers and submitted to the Bank of Russia, according to Finmarket.
Evgeny Ufimtsev, the executive director of the Russian Union of Motor Insurers (RSA), emphasized that extending repair deadlines is only part of the solution. He stressed that insurers should not impose penalties when delays occur for reasons beyond their control and that the industry needs flexibility to manage evolving circumstances in the repair landscape.
At present, delays are largely a result of difficulties in processing bank payments and shortages of essential spare parts at service centers. These bottlenecks disrupt the scheduling of repairs and can lead to disputes over financial claims against car insurers. The situation is further complicated by the fact that rigid deadlines without regard to current realities may undermine the fairness of processes for policyholders and could drive some to attempt fraud by exploiting fines or penalties.
Insurers also raised the possibility of using used spare parts or non-original components from other markets to complete repairs, particularly for newer vehicles with service lifespans of six to ten years. This proposal arises from ongoing interruptions in the supply chain for new parts. A critical step would be to approve a list of components that may be substituted without compromising safety. The condition for using used parts would require the vehicle owner’s consent and a verification by the service station that in-time repairs with original parts are not feasible. Such a framework would be designed to preserve safety while acknowledging the current constraints that the repair network faces.
Acknowledging the broader context, market participants are evaluating how these adaptive measures might affect claim handling, repair quality, and consumer protection. The aim is to maintain timely service for policyholders while reducing the risk of systemic disruptions that could ripple through premiums, coverage availability, and overall market stability. The discussions also reflect a cautious approach to maintaining safety standards as supply chains adapt to external pressures. The situation continues to evolve as regulators and insurers monitor outcomes and adjust guidelines accordingly.
A view of the situation is captured by industry imagery from Depositphotos.