Russian motorists will gain access to compulsory motor third-party liability insurance (MTPL) for short durations, ranging from one day up to three months. The measure became effective on March 2, according to RIA News.
Previously, vehicle owners could obtain MTPL coverage only for periods of at least three months within a calendar year.
Under the new rule, a short-term MTPL policy becomes active three days after the insurer files the necessary documents, unless the policy itself specifies a different start date. At the same time, the duration of any MTPL contract cannot be altered once it is in force.
Earlier, the Central Bank of Russia proposed a price framework for these short-term MTPL products, outlining an upper limit on premiums comparable to the cost of annual policies for the same vehicle owner.
In calculating premiums for shorter terms, insurers will apply a discount based on policy duration. Other variables such as the driver’s age, driving experience, geographic region, and additional risk factors will continue to influence the final price.
There was previously a discussion in the State Duma about whether damages under compulsory insurance should compensate for incidents caused by falling icicles on vehicles, a proposal that did not advance into law.