A recent report indicates that the Federation Council is considering penalties for insurance providers that cannot issue compulsory traffic liability insurance due to problems on their online platforms. The proposal highlights the risk that digital malfunctions could block the issuance of MTPL policies, potentially leaving drivers without valid coverage and exposing the system to administrative gaps.
The draft law was put forward by Andrei Kutepov, head of the Committee on Economic Policy in the Federation Council. The measure aims to add new offenses to the administrative code specifically to address situations where an electronic MTPL policy cannot be published because of technical issues on an insurer’s website. The goal is to create a clear accountability mechanism for disruptions that hinder policy issuance.
Under the proposed rules, if an MTPL policy cannot be issued due to technical problems on an insurer’s website, officials could face fines ranging from 20,000 to 50,000 rubles, while legal entities might be fined from 100,000 to 300,000 rubles. Additional penalties are suggested for failures to provide policy documents or for delays in issuing the MTPL certificate, with fines from 10,000 to 50,000 rubles depending on the violation.
The Russian Association of Automobile Insurers notes that complaints about policy issuance failures appear sporadic, though some lines of compulsory motor liability insurance are viewed as financially challenging for insurers. RSA also pointed out that insurers have already faced fines in cases where extra services were imposed or where compulsory MTPL coverage was refused to customers. The association emphasizes that the current market already includes episodes of nonstandard conduct by some insurers, which can undermine consumer trust and regulatory confidence.
Observers remind the public that the core function of MTPL is to guarantee vehicle liability protection for road users. When digital systems fail to dispense policies promptly, drivers may experience unexpected delays, creating reputational risk for the insurers involved and potentially increasing regulatory scrutiny. The discussion around these penalties reflects a broader effort to align electronic service delivery with statutory obligations, ensuring timely access to essential coverage regardless of platform reliability.
Industry experts suggest that any enforcement framework should balance accountability with the realities of technology and operational risk. Proponents argue that clear penalties could incentivize stronger IT resilience, more robust incident response plans, and better customer communication during outages. Critics, however, caution against unintended consequences such as over-caution or a chilling effect that could curb competition. The dialogue continues as lawmakers weigh the appropriate enforcement mix and the practical implications for both consumers and insurers.
Meanwhile, the alignment of pricing and coverage policies remains a central concern for users who depend on reliable MTPL service. Market participants expect ongoing monitoring of website performance, transparent incident reporting, and timely remediation efforts so that policy issuance remains seamless, even in high-demand periods. The evolving regulatory environment aims to safeguard the stability of the compulsory insurance market while promoting fair access to essential coverage for all drivers, regardless of the online platform used.
In summary, the Federation Council is examining a strategy that ties administrative penalties to the operational reliability of insurers’ digital platforms. The outcome of this proposal could influence how insurers invest in technology, how they manage outages, and how they communicate with the public about policy availability. As the dialogue progresses, stakeholders emphasize the shared objective: ensuring that every driver can obtain MTPL coverage quickly and without unnecessary friction, even when technical hiccups occur on insurer websites.