The Central Bank of Russia is pursuing a new framework for short-term compulsory motor insurance policies that will roll out in 2024. This plan was outlined in a draft reported by Interfax.
Under the draft, the price of MTPL policies issued for a period from 1 day to 3 months cannot exceed the cost of the standard annual policy for the same vehicle owner. Insurers will determine the price of these brief policies using a discount factor that accounts for the policy term. In addition, the final cost will depend on factors such as the driver’s age and driving experience, the region, and other rating elements used by insurers.
The Central Bank notes that owners of older model vehicles will have the option to request short-term compulsory car insurance when transferring ownership of their vehicles to another person.
These changes are set to take effect on March 2, 2024, eliminating the mandatory annual validity period for compulsory automobile insurance policies. After this reform, vehicle owners will have the option to obtain coverage for at least three months within a year.
There is discussion about the possible implications of removing MTPL from the standard list of registration documents and what that could mean for travelers and vehicle owners who seek flexible coverage terms.
Rising concerns about how consumers can verify the authenticity of MTPL policies are part of the broader conversation as the system evolves. With shorter- term options becoming available, it is important for buyers to confirm policy details, coverage limits, and the insurer’s credibility to avoid counterfeit or misleading products.
In parallel, authorities emphasize transparent pricing and clear disclosures so drivers can compare offers and choose coverage that matches their needs without surprises at the point of purchase. The reshaped approach aims to give motorists more flexibility while maintaining a stable safety net for road users across different regions and vehicle types.