How the new OSAGO law works

How the new OSAGO law works

On April 28, 2017, amendments to the federal law on compulsory motor third-party liability insurance entered into force, establishing the priority of insurance compensation in the form of restoration repair of a damaged vehicle over insurance payment. What changed?

The amendments were discussed for a long time, they were repeatedly amended, and after their adoption, many motorists have more questions than answers. We will talk about the main changes in the law on compulsory motor third-party liability insurance with the introduction of the priority of compensation in kind and will try to answer the most frequently asked questions.

1. What has changed?

If earlier the choice of the form of insurance compensation was made by the victim, then in the new edition this order changes. Now the insurance company carries out compensation for damages by referring for restoration repairs to one of the service stations (STOs), with which the insurer has an agreement. An important nuance: the procedure applies only to cars owned by individuals registered in the Russian Federation. The policyholder can choose the desired service station both at the stage of policy execution and at the stage of loss settlement.

At the same time, the law establishes a number of requirements for the organization of reconstruction. Firstly, the insurer cannot issue a referral for repairs to the service station, the distance to which is more than 50 km from the place of the accident or the place of residence of the victim (at the choice of the victim). An exception is the case if the insurer at his own expense arranged transportation of the damaged car to the place of repair and back. Secondly, the repair period should be no more than 30 days from the day the vehicle was provided to the service station. Thirdly, repair of vehicles not older than two years, which are under warranty, should be carried out only by an authorized dealer. The minimum warranty period for the repair of a damaged car is six months,

The main advantage of the amendments introduced for motorists is the exclusion of depreciation from the amount of payment. Unlike the monetary form of compensation, the repair will be paid by the insurer in full. At the same time, the use of used or reconditioned parts is not allowed.

Cash insurance payment may be made only in the following cases:

– the existence of a written agreement between the insurer and the victim for compensation in cash;

– death of the vehicle;

– the death of the victim.

The victim may independently choose monetary or in-kind compensation in the following cases:

– the repair cost exceeds the maximum payment amount: 50,000 rubles for the execution of the Euro Protocol, 400,000 rubles in other cases;

– An accident with three or more participants, in which all participants are recognized as responsible for causing harm, provided that the victim does not agree to make a surcharge for repairs;

– only property other than the vehicle is harmed;

– causing serious or moderate damage to the health of the victim;

– the victim is disabled and uses the vehicle for medical reasons.

These amendments apply to insurance contracts entered into after April 28, 2017. After the amendments were introduced, discussions arose: which of the policies should start from the indicated date – the victim or the perpetrator? On this occasion, the CBR published an official clarification. When applying within the framework of direct compensation for losses, it is necessary to rely on the date of conclusion of the contract between the victim and the insurer, in other cases – on the date of conclusion of the contract of the culprit of the accident.

2. How is in-kind compensation made?

If an accident occurred as a result of a collision of two cars, the liability of all participants was insured under compulsory motor third-party liability insurance and there was no harm to life and health, the victim submits an application for insurance compensation to his insurance company (direct compensation for losses). In other cases, the application is submitted to the insurance company responsible for the accident. It is worth noting that from September 25, 2017, the amendment clause enters into force, which provides for the process of direct compensation for losses in the event of an accident involving more than two participants.

If the contract is subject to the effect of amendments on the priority of repair over payment, then in the application for the insured event you need to display information about the service station selected from the list of insurer, on which the repair is supposed to be made. If none of the stations with which the insurance company has a contract does not meet the requirements for the organization of restoration repair, you can claim to pay insurance compensation in cash. This fact must be reflected in the statement. If you want to repair a damaged vehicle in a specific service station, but the insurance company does not have an agreement with it, this possibility is provided by law with the written consent of the insurer. For this, it is necessary to indicate the full name of the organization in the application for damages address and payment details. Within 15 business days, with the exception of non-working holidays, the insurer must consider the documents and provide either written consent to pay for repairs at the specified service station, or refusal in this form of payment.

After submitting documents for payment and inspection of the vehicle, the insurance company must issue a referral for repairs within 20 calendar days, with the exception of public holidays. If in the application you indicated a service station with which the insurer has not concluded a contract, then the term for issuing a referral is increased to 30 days. If the insurer does not comply with the specified time, then you have the right to receive a penalty in the amount of 1% of the amount of insurance compensation for each day of delay.

If hidden damage was detected during the acceptance of the vehicle for repair, the insurer and the service station shall additionally coordinate the costs of their restoration. The maximum period of restoration work established by law is 30 days. In case of non-observance of the specified terms, you can recover from the insurance company a fine of 0.5% of the amount of payment for each day of delay.

3. Where to complain?

Responsibility for violation of the terms of repair work and their inadequate quality lies with the insurance company that issued the referral.

In the event that deficiencies in the work performed during car acceptance or during the warranty period are identified, you need to make a claim and forward it to the insurer. Within five calendar days from the date of receipt of the claim, with the exception of holidays, the insurer organizes an inspection of the car, during which an assessment of the completeness and quality of the restoration work is carried out. If the inspection confirmed the presence of deficiencies and they can be eliminated by a second repair, the insurer issues a referral for such repairs. If elimination of deficiencies is not possible, payment is made in cash.

If you have any complaints about the work of the insurer, contact the Internet reception of the Bank of Russia or the Russian Union of Auto Insurers. In the event of repeated violation of the obligations for restoration repair, the Central Bank is entitled to limit the payment by such insurer of compensation in kind.

Today it is too early to talk about the effect of introducing a priority of compensation in kind. The practice of resolving losses under the new scheme has not yet been formed. According to the leadership of the PCA, it will affect about 30% of the victims. Judging by the numerous reviews, the innovations have not yet significantly affected the OSAGO accessibility situation, but time must pass for the insurers to evaluate the results.

In general, the amendments introduced are clearly aimed at improving the situation with compulsory motor third-party liability insurance: repair without wear and tear, the insurer’s responsibility for the repair and its terms. The selection factor of the insurer becomes even more significant, since it will directly depend on how much effort you will spend in settling the loss, as well as the proposed level of service stations.

You can always read reviews about the work of the insurance company in the “National Rating” section of Banki.ru, and you can find out the cost of the MTPL policy and buy it using our MTPL calculator .

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