Changes in insurance: individual rate and support for car owners in a pandemic

The state Duma adopted a law aimed at improving the pricing system in CTP, and also support car owners in the context of restrictive measures due to the coronavirus.

Insurance companies will offer individual car owners insurance rates within the tariff corridor, established by the Bank of Russia. It will be determined depending on the factors characterizing a specific driver. As one of such factors may be considered including a traffic violation. These changes will enter into force 90 days after official publication of the law.

The adopted amendments to the legislation are a key element of the reform of the insurance proposed by the Bank of Russia jointly with the Ministry of Finance. The first phase in January 2019, the Bank of Russia changed the approaches to the definition of a number of factors, and expanded the tariff corridor. It is possible to move to a more differentiated approach to setting tariffs, contributed to the development of competition among insurers.

Because the conditions of application of restrictive measures due to the spread of coronavirus infection the passage of the inspection can be difficult, the law also provides for the conclusion of contract OSAGO without a presentation of the diagnostic card. Diagnostic card must be submitted to the insurer no later than one month from the date of the abolition of these measures. This provision applies to contracts of insurance entered into from 1 March to 30 September 2020.

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