Amendments to the law on compulsory motor liability insurance continue to be considered. The changes suggest that after an accident, priority will be given to in-kind rather than monetary compensation for damage, that is, car repairs. The main effect that is expected to be achieved after the amendments come into force is the departure of numerous scammers - the so-called auto lawyers - from the market. They may disappear almost immediately after the updated law takes effect.

The main innovation, which is planned to work in the very near future, is that when compensating for damage from an accident, priority will be given to car repairs rather than payment of monetary compensation.

In the first reading, the corresponding document was adopted by the lower house of parliament at the end of 2016. Since then, deputies, as well as representatives, have made a number of new changes and proposals. For example, according to the new version, the law prohibits insurance companies from using used and refurbished parts when repairing a car.

In addition, according to the document, the minimum warranty for repairs should be six months, and for body work using paint and varnish materials - 12 months. The repair period should not exceed 30 days, and the road to the service from the scene of the accident or the victim’s place of residence is 50 kilometers; cars under two years old must be repaired only at official dealer services. If it is not possible to find a car service that complies with the requirements of the law, the victim may agree to another service station or demand a monetary payment.

The opportunity to receive money will remain in law - in cases where the car cannot be restored; if the cost of repairs is higher than the insured amount or the maximum according to the European protocol; if other property is damaged; by written agreement with the insurer; in case of consequences of an accident that require significant costs (death, serious harm or moderate harm).

Insurers are coming forward

Insurers do not support innovations in everything, but are ready to make concessions. Thus, they have already agreed to exclude the wear rate of spare parts from their calculations and take responsibility for the quality of repairs carried out as part of compensation under compulsory motor liability insurance, wrote.

“In general, there are aspects that do not suit us,” the Russian Union of Auto Insurers (RUA) told the publication. - But we have taken the position that the version of the law that was agreed upon by the Bank of Russia and the Ministry of Finance is acceptable. Although it was largely reshaped from the original version for the benefit of car owners. But we support the idea itself and are ready to make concessions in favor of consumers.”

First of all, insurers are meeting the new law halfway because it will really help cope with the dominance of car fraudsters. There are a huge number of so-called auto lawyers operating in the car insurance market. True, they are more often called “black” or “gray car lawyers”, since their activities relate to the real protection of the interests of car owners very indirectly.

Previously, I talked about the schemes used by “black car lawyers” and the damage they cause to the industry. The most common scheme: criminal groups, arriving at the scene of an accident, take advantage of the shocked state of the injured driver and offer to assign them rights of claim or issue a power of attorney for them with the right to receive all payments for the insured event. After this, the mediator files a claim in court, without pre-trial consideration of the case. However, the insurer does not see the car involved in the accident and therefore cannot accurately determine the amount of damage. The amount of payments that the “car lawyer” receives turns out to be many times higher than what the car owner received, and the insurance company pays fines, penalties and repairs at an inflated cost. As a result, both the car owner and the insurance company remain in the red.

According to the Russian Union of Auto Insurers, damage from fraud in compulsory motor liability insurance in 2016 amounted to 40 billion rubles.

Who will remain in the black?

The new rules were supposed to come into effect on March 1, 2017. But the adoption of the amendments was delayed - Kommersant, in particular, wrote that even if the amendments are adopted, procedural issues will not be resolved within the prescribed time frame. However, according to the publication, the Central Bank considers the reform a priority, so there is hope that the deputies will not postpone it for too long.

Experts have repeatedly emphasized that the MTPL reform will improve the health of the auto insurance market. Under the new law, both car owners will benefit, who will receive a high-quality repaired car, and insurers, who will pay for car repairs, and not the services of criminal “auto lawyers.”

NAFI states that almost immediately after the amendments to the law on compulsory motor liability insurance come into force, 90 percent of fraudsters will be forced to leave the market, and within three to four months the compulsory auto insurance industry, which is now in crisis, will be restored. The overall loss ratio, which today is over one hundred percent, will drop to 80-85 percent, analysts believe.

But delaying the adoption of amendments plays into the hands of scammers, experts say: they will either begin to act more actively in order to “work off” future losses now, or they will have time to come up with other enrichment schemes. “Today, about 10-15 percent of the total volume of payments under compulsory motor liability insurance goes into the hands of fraudsters, which amounts to about 40 billion rubles a year; and in view of the preparation of traffic lawyers for the “seven lean years,” this figure may increase,” NAFI notes.

The innovations proposed by the Ministry of Finance regarding mandatory regulations at the beginning of the year are expected to come into force in May 2017. It is worth noting that many car owners are against the MTPL reform, since according to the new conditions, a person injured in an accident can only count on restoration repairs at the expense of the insurer, the payment of compensation funds will lose its relevance.

The planned procedure for implementing the reform has caused many disputes regarding the new rules for compensation for damage caused by road accidents. Some motorists even express the opinion that the complete abolition of compulsory motor liability insurance would be more beneficial for vehicle owners than introducing amendments of this kind. Despite this, RSA President I. Yurgens, having familiarized himself with the plan and features of the innovations, noted their effectiveness and relevance.

As representatives of the Ministry of Finance note, a global change in the terms of the policy will become a new stage in the relationship between insurers and policyholders. The nature of these relations is subject to radical change; some amendments require urgent introduction, which will help avoid illegal actions on the part of car fraudsters and aggression from car lawyers. The implementation of the planned changes will be carried out in stages, which will maximize the gradual adaptation and optimization of the reform process.

The first stage involves the introduction of the most urgent reforms that cannot be delayed; the next stage involves the implementation of actions and amendments that can be implemented after a certain time.

Implementation of the first stage of the MTPL reform

The major reform of compulsory motor liability insurance involves a transition from cash payments to in-kind payments. At the first stage of its implementation, it is planned to introduce a new condition for compensation for damage, which does not provide for covering damage in monetary terms, as was previously the case, but for carrying out restorative repairs.

Additional Information! The State Duma supported the proposal to amend the conditions of OSAGO auto insurance, but with some reservation. Compensation for damage caused by an accident through restorative repairs should be applied only to those policyholders who entered into an agreement with the insurance company after a month from the date of promulgation of the amendments in question through their publication.

According to forecasts of the Ministry of Finance, reimbursement of the costs of the injured party in kind will be made in 90% of cases. A peculiarity of this aspect is the fact that the right to choose the form of compensation remains with the insurers, that is, the latter can fulfill the terms of the insurance contract both by paying the insured amount and by carrying out repairs to restore the car.

It should be expected that the consequences of the introduction of amendments will be perceived differently by the parties to the insurance contract. Thus, insurers will have the opportunity to control the procedure for in-kind compensation, thus protecting themselves from unscrupulous motorists and fraudsters who sometimes try to fraudulently increase the amount of insurance when an insured event occurs.

Benefits for the policyholder

As for the benefit of the policyholder, its existence in this case is very doubtful, since the latter is completely deprived of the opportunity to independently select the most suitable parts, control the repair procedure, as well as the quality of the work. It should be noted that from this side, the innovation can hardly be called profitable and effective for the owners of vehicles damaged as a result of a traffic accident.

The head of the Russian Union of Auto Insurers insists that the implementation of the reform process be carried out taking into account the following conditions:

• car owners should be given the right to choose between monetary and in-kind compensation in the event of failure by the insurer to comply with the basic conditions for restoration repairs;
• the insurance company is obliged to provide the policyholder with a referral for restoration work and options for service centers, which the latter has the right to choose at his own discretion;
• before fulfilling the terms of the contract for damage compensation, it is necessary to conduct an independent examination of the vehicle, on the basis of which the payment of funds or repair work will subsequently be carried out;
• in case of payment in kind, the policyholder is obliged to guarantee the quality of the planned work, as well as the ability to control its implementation.

According to the head of the RSA, the implementation of the above conditions will make the reform procedure painless, and its consequences more beneficial for vehicle owners.

Additional Information! On the major MTPL reform, the process began at the beginning of 2017, the second reading, which may well result in the introduction of new amendments taking into account the stated requirements, is scheduled for March 15 of this year.

The main advantages of the OSAGO reform 2017 I. Yurgens include the absence of a requirement to take into account the wear of parts during restoration work. Thus, if previously, when calculating compensation, it was necessary to take into account the depreciation wear and tear of the vehicle and parts damaged as a result of the accident, then according to the draft OSAGO reform, this requirement is not put forward.

In addition to the changes associated with the transition to payment in kind, at the first stage it is planned to double the amount of insurance for minor road accidents, which are allowed to be processed without the participation of third parties. The current limit of 50 thousand rubles is planned to be raised to 100 thousand, which, in fact, increases the chances of those involved in an accident who have recorded the fact of an accident in the European protocol to receive full compensation for harm.

The proposal was supported by N. Tyurnikov, who is the head of the Association for the Protection of the Rights of Auto Insurers, as well as representatives of the Central Bank, since, in their opinion, it is simply impossible to carry out high-quality repairs of a vehicle damaged during a collision for 50 thousand rubles.

Features of the second stage of the MTPL reform

The second group of amendments includes items whose implementation is planned after the implementation of global changes in compulsory motor liability insurance.

Secondary innovations include:

Which will come into force in 2017, has already created a lot of heated discussions and debates. Insurers' hair stands on end when they think about the number of settlements in case of an insured event, and motorists confidently declare that with such innovations it is more profitable to abolish compulsory motor liability insurance altogether. However, first things first.

The Ministry of Finance has prepared its MTPL reform, which will globally change the relationship between insurance companies and car owners, which was agreed upon with the Central Bank at the end of September. Igor Yurgens, President of the Russian Union of Auto Insurers, has already managed to get acquainted with the innovations and note their effectiveness. The head of the RSA is concerned that the State Duma may delay its consideration of the global plan.

“There are a number of amendments to compulsory motor liability insurance that need to be introduced urgently, otherwise the influx of insurance fraudsters and aggression from “car lawyers” cannot be avoided. It is also urgently necessary to regulate the system for issuing insurance policies in the regions and have time to launch a system for the electronic sale of policies by January 1, 2017, which is required by law,” said Igor Yurgens.

To help optimize the reform process, a gradual introduction of the bill was proposed. Conventionally, this will happen in 2 stages. The first group of amendments are reforms that need to be implemented as quickly as possible. Work on the next group of amendments can be continued at a more relaxed pace.

First stage

The 2017 OSAGO reform, which is part of an urgent package of amendments, intends to place emphasis on the implementation of “in-kind” payments. The approval of these innovations will make it possible to receive compensation in the form of car repairs, rather than in cash, as was previously the case. Insurance companies will have the right to choose the option of compensating losses to the car owner in the event of an insured event. According to forecasts from the Ministry of Finance, after 2017, more than 90% of payments will be made through the “in-kind” compensation system.

The result of the amendment will be perceived differently from the point of view of insurers and car owners:

• Insurance companies. If the amendments are approved, the benefits for insurers will be undeniable: they will receive protection from unscrupulous auto lawyers and dubious fraud in the payment of funds.
• Car owners. For the car owner, the benefit remains vague - the insurance company has the right to decide for itself how compensation will occur. Vice-President of the Russian Motorists Movement Leonid Olshansky notes that this is unfair, because in the event of compensation through restoration repairs, the motorist will not be able to independently select spare parts and control the process of repairing the vehicle.

However, the president of the RSA insists that owners must have a choice between monetary and “in-kind” compensation. A cash payment will be possible if the insurance company does not meet the necessary basic conditions to provide compensation for repairs. For example, the insurer must issue a referral for repairs and provide a choice of several service centers. In addition, it is necessary to carry out an examination of the damage to the vehicle, as well as provide the motorist with a guarantee for the work performed.

Igor Yurgens considers the advantage of payment in kind in the MTPL reform to be the return without taking into account wear and tear of parts, due to which it will be more complete. According to the law, the monetary payment occurs minus the wear rate of spare parts.

Important! It is impossible to completely cancel monetary compensation - there are situations when the cost of car repairs exceeds the insurance limit. In this case, funds are paid.

At the second step of the first stage of amendments, it will be proposed to double the limit of payments for small accidents processed without the participation of the police. The current limit is 50,000 rubles. The maximum payment under the European protocol is planned to be raised to 100,000 rubles. This idea was immediately supported by the Central Bank and the President of the Association for the Protection of Insurers' Rights Nikolai Tyurnikov, who claims that the amount of 50,000 is too small to carry out high-quality repairs after an accident.

Second phase

The second group includes amendments, the introduction of which was decided to be postponed so that the project could be successfully approved by the State Duma. These include:

• Cancel power factor. The Russian Insurance Association does not support the implementation of this amendment. Currently, the calculation of insurance payments is based on mathematical calculations, which include a social aspect. There is a discount for small engine power - for cars with power up to 50 hp. With. the coefficient is 0.6. For owners of cars with power above 150 hp. the coefficient is 1.6. The abolition of the coefficient will lead not only to a reduction in the cost of the policy for powerful cars, but also to an increase in the cost of it for cars with low power.
• Coefficient for systematic violation of traffic rules. The Ministry of Internal Affairs stubbornly insists on introducing this innovation. According to statistics from insurance companies, neglect of traffic rules really affects the amount of payment. If a driver commits 5 to 9 serious offenses in a year, the cost of the policy will increase by more than 80%. For persistent violators, the price can triple.

Important! The latest news related to the MTPL reform clarifies that sanctions will be relaxed for insurers who violate their obligations to pay compensation. The Ministry of Finance gives them more freedom to calculate the cost of compulsory motor liability insurance, which will include the individual characteristics and driving experience of the car owner.

Selecting a policy category

It is expected that in 2017 the global MTPL reform will be supplemented with a final block of amendments. He means division of insurance policies into 3 categories:

1. "Economy". An option that involves a payment limit of 400,000 rubles. for causing damage to property and 500,000 rubles. for harm to health.
2. "Standard", the payment limit for which will be 1 million rubles for each category of payments.
3. "Premium", guaranteeing payments of up to 2 million rubles for each risk.

The head of the auto insurance methodology department of SOGAZ JSC, Yuri Gortsakalyan, believes that the level division of policies is irrelevant. OSAGO is a compulsory type of insurance, therefore the conditions for all motorists should be the same. Optimization using the voluntary insurance method will not be in high demand among motorists. In addition, in the activities of insurance companies, such an innovation can lead to the imposition of a more expensive policy on the client.

After the final version of the draft MTPL reform was published, both sides were puzzled - both insurers and motorists. However, the Ministry of Finance, on whose initiative this project was introduced, claims that the implementation of the federal law will improve the quality of insurance services provided and improve the insurance culture. The risk of crimes committed by auto lawyers will be reduced, and therefore the level of confidence of motorists in the insurance market of the Russian Federation will increase.

The State Duma Committee on the Financial Market recommended adopting amendments to the federal law “On Compulsory Motor Liability Insurance” in the second reading. The main innovation is the transition from cash insurance payments to an in-kind form of compensation for damage, that is, to car repairs. Moreover, this procedure must be strictly regulated. Financial compensation is proposed to be left only in exceptional cases. Experts draw attention to the inconvenience that car owners may face: the law allows 30 days to restore a vehicle, and during this time people will not be able to drive. Will it be possible to find a balance between the interests of drivers and insurers - in the RT material.

• RIA News

The essence of the amendments

The State Duma adopted the bill, authored by deputy Mikhail Yemelyanov, in the first reading at the end of 2016, after which there were fierce disputes around the amendments between parliamentarians, interested departments, insurers and experts. As a result, several important clarifications appeared in the bill. On February 21, the Financial Market Committee recommended adopting this version in the second reading; voting could take place on March 10.

• Plenary session of the State Duma
• globallookpress.com
• Komsomolskaya Pravda

The most important amendments made to the document relate to the conditions for repairing a vehicle involved in an accident.

Thus, spare parts used for insurance repairs must only be new. However, with the consent of the car owner, the service station (STO) will be able to use used parts.

When concluding a contract, the policyholder will be asked to choose the service station itself from a list of those with which the insurer cooperates. In this case, the driver, if there are no objections from the insurance company, will be able to repair the car at another service station that is not included in the insurer’s register.

While the government initially proposed a two-month warranty on repairs, MPs insisted on a six-month warranty on parts and labor, and a one-year warranty on bodywork and paint work. The insurance company will be responsible for the quality of repairs.

In addition, the amendments stipulate that repairs must be carried out at a service station that is located no further than 50 km from the scene of the accident or the victim’s place of residence. If both cannot be accomplished, the insurer will be obliged to transport the car to the workshop and back at its own expense.

30 days are allotted for the repair itself under compulsory motor liability insurance. For every day of delay, the insurer is subject to a penalty of 0.5% of the amount of damage in favor of the client. At the same time, in case of regular delays, the Central Bank may suspend the insurer’s right to work under “natural” compulsory motor liability insurance for a year and oblige the company to pay compensation exclusively in money during this period.

By the way, another important block of amendments concerns cases when compensation under compulsory motor liability insurance will still be provided in cash. The car owner has the right to count on this if his vehicle cannot be repaired or if restoration costs more than the maximum compensation under the “automobile civil law”. In this case, the policyholder will be able to either simply receive the money or pay the missing amount for repairs. In addition, insurance companies will compensate for damages in cash if the driver is killed in an accident or injured.

Let's start with problem regions

Deputies propose switching to in-kind compensation under compulsory motor liability insurance 30 days after the publication of the law. This will only affect new insurance contracts concluded after the amendments entered into force.

• OSAGO insurance policy
• RIA News

At the same time, parliamentarians provided for the possibility of the Central Bank identifying regions where a waiver of monetary compensation could be introduced under existing, previously concluded MTPL agreements.

According to the Central Bank, there are now 16 regions where the “automobile insurance” is unprofitable for insurers due to the actions of unscrupulous automobile lawyers. It was this problem that led to the idea of ​​abandoning cash payments in favor of in-kind compensation.

According to the Russian Union of Auto Insurers, lawyers in a number of regions are conducting a “fraudulent” business, massively buying out the right to claim insurance from car owners involved in accidents and immediately paying compensation to the victim in the accident. The lawyers then submit a pre-trial claim to the insurer without providing the vehicle damaged in the accident for inspection. In this case, the insurer cannot determine the amount of damage. As a result, by a court decision, which usually sides with the insurer’s representative, the company is forced to pay not only the amount of damage, which can be inflated several times, but also fines and penalties.

Of course, in this case we are talking about a fraudulent method of obtaining money from an insurance company, and not about conscientious automobile lawyers protecting the rights of car owners.

Insurers criticize reform

Nevertheless, the amendments were criticized in the insurance community, which seeks the most comfortable working conditions for itself.

“For example, this is the choice of a service station at the request of the client. Then it must be noted that in this case the insurer is not responsible for the quality and timing of repairs. It is also impossible to impose a ban on the use of used spare parts. Cars produced 10-12 years ago get into accidents; new spare parts are no longer produced for many of these models,” said Evgeny Ufimtsev, executive director of the Russian Union of Auto Insurers.

Another complaint from insurers to legislators concerns the scheme for the gradual start of the new law. Thus, after the law comes into force, new policies to which it will apply will begin to appear to car owners as a result of natural replacement throughout the year.

“In the proposed version, we will be able to completely switch to the natural form only in a year. The ability of insurers to save money by mass sending cars to service stations and receiving discounts from them will be reduced. In addition, there are still loopholes for auto lawyers to receive money from insurance companies in other regions (from those regions that are recognized by the Central Bank as problematic, unscrupulous lawyers can go with claims to others. - RT). The money that insurers are now earning is not enough,” Ufimtsev concluded.

However, the deputy chairman of the Central Bank, Vladimir Chistyukhin, responded to this by saying that if unscrupulous lawyers simply “flow” from one region to another, the Central Bank will have the opportunity to extend in-kind payments under old contracts to them as well.

Reimbursement in European style

Automotive expert Igor Morzharetto generally has a positive assessment of the MTPL reform in the proposed version: “The transition to compensation in kind is the right decision. This works in European countries. If the law clearly states everything regarding the liability of insurers, then there should be no problems. All talk about the quality of repairs under OSAGO is from the evil one.”

• Technical inspection at the service center
• RIA News

At the same time, certain inconveniences may arise with the 30-day period allotted for the restoration of the vehicle.

“Now you can quickly repair your car with your own money, drive and wait for compensation from the insurance company. In the case of in-kind compensation, the car owner may be left without personal transport for a month. But I hope that turnover is important for service stations and they will not delay repairs until the maximum period established by law,” said RT Morzharetto.

The Ministry of Finance has sent a new batch of amendments to the law on compulsory motor liability insurance to the departments for approval. They significantly reduce the volume of payments from the compensation fund of the Russian Union of Auto Insurers (RUA). Claims for them cannot be transferred to auto lawyers, and the consumer rights protection law will not apply to these payments, thanks to which the courts are now collecting amounts two to three times more than the paid damages under compulsory motor liability insurance. Last year, 5 billion rubles were paid out from the RSA fund, of which about 30% went to scammers, the union believes.

The MTPL repair reform (the corresponding law was signed by Vladimir Putin on March 28) is not the last change in the lives of car owners. As the Ministry of Finance told Kommersant, the next batch of amendments to the law on compulsory motor liability insurance has been sent to the ministries for approval. According to Vera Balakireva, deputy head of the financial policy department of the Ministry of Finance, transformations in the segment will continue. They will be formalized in three bills.

The first one, on March 28, has already been sent for approval to ministries and departments. According to the document (available to Kommersant), insurers lose the right to issue a recourse claim to a pedestrian injured in an accident for damage caused to the car. As explained by RSA, since a car is a source of increased danger, the Civil Code does not give the insurer the right to issue recourse to pedestrians. “However, there were still isolated cases on the market,” they agree with the need for changes in the union.

At the same time, RSA, when making payments from the compensation fund, receives the right of recourse to the culprit of the accident in the amount of compensation made. Let us remind you that, according to the law on compulsory motor liability insurance, payments from the RSA comp fund are due to victims in the event that the culprit of the accident is unknown, or his liability is not insured, or the insurer who issued the policy is bankrupt. In addition, RSA receives the right to issue a recourse to the service that issued the diagnostic card to the car if it turns out that the accident occurred due to a malfunction that could have been detected at the time of inspecting the car to obtain the card.

In turn, a number of restrictions are imposed on payments from the RSA comp fund: they cannot be assigned to third parties, that is, auto lawyers, and they are not subject to the law on the protection of consumer rights. Let us recall that it is this law that allows lawyers in courts to recover from insurers double or triple the amount of paid damages - thanks to the ability to issue invoices for the services of lawyers, pay for the opinions of expert technicians, the amount of damage plus 50% as a fine. In addition, if the recipient of a payment from the fund has claims regarding its amount, before filing a claim in court, filing a claim with the RSA will become mandatory.

The MTPL reform will not end with replacing payments with repairs - a new batch of amendments to the law on car owners' liability insurance has already been submitted to the ministries for approval

According to RSA, the comp fund now has 14 billion rubles. Since the start of comp payments in 2004, victims have received 32.8 billion rubles from it. Last year, the amount of payments from the fund amounted to 5 billion rubles. and up to 30% of them are considered dubious by the RSA - “swindled” auto lawyers.

Vera Balakireva says that the Ministry of Finance has two more projects on the way - to increase payments under the European protocol from 50 thousand rubles. up to 100 thousand rubles. and on the liberalization of insurance conditions, including tariffs with the division of policies depending on the sum insured into premium, business and economy options (Kommersant wrote about this on September 15, 2016). “This is a basic draft of amendments, it has already passed the first round of approval, we have received comments and are working on them,” concludes Ms. Balakireva. However, according to Kommersant's information, the Central Bank has so far refused to approve it; the regulator believes that these innovations will create “unnecessary turbulence” in the market and it is not worth discussing the project until the repair reform is tested.