Checking MTPL policies using traffic cameras can start as early as the first week of October. In addition, they plan to expand the tariff corridor in November. According to the executive director of the Russian Union of Auto Insurers (RUA) Evgeny Ufimtsev, this is the deadline for the Bank of Russia’s instructions to come into force. There are several more proposals in the pipeline that could seriously change the car insurance market. Izvestia found out when all this will start working.
Cameras monitor policies
Testing of the system that checks compulsory motor liability insurance has already begun. RSA reported: of the 4.5 million cars caught by traffic cameras during the day, only 6% did not have a policy. The union admits that the database transferred to the Ministry of Internal Affairs may contain a small percentage of “dirt” - errors. At the same time, RSA executive director Evgeny Ufimtsev, based on the Moscow results, hastened to draw a global conclusion: 4–5 million drivers throughout Russia drive without compulsory motor liability insurance policies.
The launch of the system was supposed to start on September 1, but was postponed at the last moment. An anonymous source told Autonews.ru that already this week the head of the capital’s Department of Transport, Maxim Liksutov, may announce the start of checking policies. Most likely, the system will work in test mode for the first time and violators will receive warnings by mail instead of a fine of 800 rubles. In addition, it is not clear how they will be fined - once a day or as many times as the car is caught by traffic cameras. And there is no clarity on the amount of the fine - the Ministry of Finance is talking about the need to increase it.
Tariffs will be revised
Participants in the hearings on September 24 in the Federation Council, dedicated to improving voluntary motor insurance, spoke in favor of liberalizing compulsory motor liability insurance. According to representatives of the RSA, quoted by Rossiyskaya Gazeta, the Central Bank's instruction on changing voluntary car insurance rates should be issued before November.
It is planned to expand the tariff corridor by 20% up and 20% down and increase the number of coefficients for age-experience from 5 to 50. The Central Bank believes that the average cost of a policy after all the innovations will “remain” at the same level. The same opinion is shared by RSA. The president of the union, Igor Yurgens, recalled that when the market share of the compulsory motor liability insurance company Rosgosstrakh decreased from 40 to 9%, the average cost of the policy decreased. This was facilitated by increased competition between other insurers. Fears that prices will rise after the expansion of the tariff corridor are groundless, says Yurgens.
How will the price of OSAGO change?
According to RSA estimates, the policy will become cheaper for 80% of drivers; the increase in its cost will be felt by young drivers who often get into accidents. Respectable and experienced people, on the contrary, will benefit - the number of values of the “age-experience” coefficient will increase from 5 to 50.
In addition, the calculation of the bonus-malus coefficient (BMC) for accident-free driving will change. In the new system, it will be assigned once a year with an annual validity period. When doubling the odds, the smallest one will be chosen. The Central Bank plans to cancel the CBM for the owner of the car and assign it individually to each driver. The driver will also have an insurance history. The goal of the reform is to make the price of the policy individual and as fair as possible.
First Deputy Chairman of the Federation Council Committee on Budget and Financial Markets Nikolai Zhuravlev generally proposed tying the policy not to the car, but to the rights. That is, move from car insurance to risk insurance for each driver. This idea has already been supported by the Central Bank and the Federal Antimonopoly Service.
Less odds, more payout
The expansion of the tariff corridor will not stop at 20%. According to Kommersant, from September 1, 2019, insurers have the opportunity to move the minimum rate by 30% in both directions, and after two years - by 40%. This will smooth out the effect of the abolition of the power and territorial coefficient.
The power factor is planned to be abolished on September 1, 2019 - the Ministry of Finance believes that there is no clear connection between a large number of horsepower and accident rates. The ministry also considered the territorial coefficient unnecessary. Despite the fact that insurance companies are unhappy with its cancellation, since no one in the regions will buy a policy at the Moscow price, it will cease to be valid in September 2020.
In addition, the Ministry of Finance also proposes to increase payment limits to 2 million rubles and the validity period of policies to three years. Another radical proposal is to provide a discount on compulsory motor liability insurance when installing telematic devices that monitor driving style. While in Russia this is how only the cost of comprehensive insurance is calculated, this is an innovation for compulsory motor liability insurance.
“During the operation of the car, the policyholder’s scoring score is determined, which, on the one hand, motivates the driver to drive more carefully, which will allow him to receive an even larger discount. On the other hand, the insurer determines the individual profile of its portfolio and sets fair rates for both “excellent” and “toxic” drivers,” Andrey, head of the department for work with insurance companies at UBI Technologies, told Izvestia Goranov.
Insurance with cameras and microphones
Insurance companies will be required to make video and audio recordings when selling MTPL policies. Such a bill will be developed and submitted to parliament in the autumn session, Anatoly Aksakov, chairman of the State Duma Committee on the Financial Market, told Izvestia.
According to him, the data will be transferred to a specially created single database, and the costs of insurers will be insignificant. Insurers disagree. According to the deputy chairman of the working group of the All-Russian Union of Insurers on insurance reform, Artur Muradyan, the costs of companies to implement the initiative will amount to about 10 billion rubles. This could ultimately lead to an increase in the price of compulsory motor liability insurance policies by 5%.
For refusal of the policy - a fine of 700 thousand.
Deputy Chairman of the Central Bank of the Russian Federation Vladimir Chistyukhin believes that it is necessary to increase fines for insurers for unjustified refusal to sell compulsory motor liability insurance. Now officials are punished for this by 20–50 thousand rubles, and legal entities by 100–300 thousand rubles. Chistyukhin proposes to increase fines to 100 and 700 thousand, respectively.
Speaking at parliamentary hearings, he said that a quarter of all complaints received by the Central Bank are complaints about the unavailability of MTPL policies in both electronic and physical formats. Car owners are faced with queues in the regions, refusals to provide insurance, and imposition of insurance services.
Spare parts of the second freshness
By the end of the year, the Russian Union of Auto Insurers will send proposals to the Bank of Russia to modernize the system of compensation for losses under compulsory motor liability insurance in kind. In addition to repair times and distance to services, they allow the use of used spare parts for repairs. If they are of good quality and there is an agreement with the owner of the car. According to RSA Deputy Executive Director Sergei Efremov, we are talking about a situation where a car has been discontinued and spare parts for it are also not produced. He noted that this approach has proven itself in comprehensive insurance and should be extended to OSAGO, and such repairs will be guaranteed.
Electric cars - discounts
The Moscow City Duma plans to discuss benefits for owners of electric vehicles in order to make this type of transport popular. According to the chairman of the capital's parliament commission on environmental policy, Zoya Zotova, we are talking about preferential travel on toll sections and discounts on the purchase of a compulsory motor liability insurance policy.
“Increasing demand for electric cars should become a trend in Russia. In order to accelerate the development of the electric vehicle market and the corresponding infrastructure, support must be provided from the Moscow government,” she told the Moscow agency.
The insurance company pays anyway
A bill has been submitted to the State Duma obliging the insurance company to fully pay for damages due to an accident, even if the person responsible for the accident does not have a policy. Deputy Yaroslav Nilov, one of the authors of the document, believes that insurers have both the human resources and the capabilities to take on these actions.
Now the participant in an accident in this case is forced to independently collect documents and evidence, bear legal costs and waste time.
What do car owners think?
Car owners support the liberalization of compulsory motor liability insurance - this was established by a study by the Romir holding. Thus, 69% of respondents believe that a free tariff will reduce the cost of compulsory motor liability insurance for conscientious drivers, 57% - that purchasing compulsory motor liability insurance policies will become easier. In addition, 72% of car owners are not satisfied that conscientious drivers who have real OSAGO policies, but do not use payments, actually pay for unscrupulous motorists and scammers.
An increase in MTPL tariffs is an increase in the final cost of a compulsory motor third party liability insurance policy, and it can become more expensive both throughout the country and for each specific driver. The price of this document is influenced by many factors. In particular, every car owner can calculate the planned increase in the price of compulsory motor insurance on his own if he understands the various coefficients. Thus, the increase in the cost of the policy is closely related to the driving experience of the motorist, his age, as well as the accident rate in the city where he lives. The most significant impact on the final price is how often the driver gets into accidents.
How much does MTPL insurance increase after an accident?
It should be said that even after a single accident, compulsory motor liability insurance will rise in price. We must expect an even greater increase in its price if the driver fled the scene of the accident. Violations of traffic rules that did not lead to an accident are also taken into account by insurers.
When issuing the policy for the first time, the insurance company determines the class of the driver. Initially, this is a level 3 class, for which the insurance price is 100% of the default value. Careful drivers receive a 5% discount for each accident-free year. After 10 consecutive years without an accident, drivers achieve a 50% discount on insurance.
For novice drivers, one accident will mean an increase in the price of the MTPL policy by almost 50%. For experienced drivers, the penalties are not as harsh: one accident only cancels the discount accrued for the previous year of accident-free driving. If you want to find out exactly your MTPL increase coefficient after an accident, the online table will be the most convenient tool.
Has OSAGO become more expensive in 2019?
The question of whether OSAGO prices will rise in 2019 has been worrying all motorists since last year. This year the Central Bank of Russia changed the calculation of some coefficients and tariffs.
It is impossible to say exactly how much OSAGO prices have increased in 2019, since this parameter is calculated individually for each driver. The price increase is planned to be carried out in several stages. It started in 2018 and will continue in 2019 and 2020.
When the price of compulsory motor liability insurance increased in 2019, it primarily affected those whose driving experience was less than 3 years and those under 22 years old. New increasing coefficients have appeared for them. Those who are over 22 years old and have been driving a car for over 3 years got by without promotions, but also without reductions.
When will OSAGO prices go up in the new year?
According to media reports, a new increase is expected in 2019: compulsory motor insurance may become more expensive by a third. According to the new bill, insurance companies will be able to set prices for documents 30% higher or lower than the base rate. The price of compulsory motor insurance will be influenced by the frequency of traffic violations, the severity of braking and changing lanes, the frequency and duration of use of the car. Legislators propose to monitor the driving style of motorists using a special device that will be attached to the body of the car.
Despite the fact that compulsory motor liability insurance has risen in price in 2019, a new increase in the cost of policies throughout the country may happen as early as 09/01/2019.
In addition, a detailed 50-step classification has already been developed, according to which the compulsory car insurance rate can be reduced throughout life. For experienced and careful drivers, the price of the policy will decrease in 2019, and for beginners it will increase by 4.5%.
Thus, constantly changing, it becomes more expensive for novice drivers and those who are still quite young. However, accident-free driving will help significantly reduce your policy costs.
New tariffs 2019: table
Previously, insurance with coefficient 1 for a passenger car was 3432-4118 rubles, after January 9 it expanded: 2746-4942 rubles. 20% added on both sides.
| Vehicle type | Base rate | |
| Minimum cost, rub | Maximum price, rub | |
| Vehicles of categories “A”, “M”: motorcycles, mopeds, etc. | 694 | 1407 |
| Passenger vehicles of drivers (individuals), categories “B” and “BE” | 2746 | 4942 |
| Passenger vehicles of legal entities, categories “B” and “BE” | 2058 | 2911 |
| Passenger vehicles of categories “B” and “BE”, if it is a taxi | 4110 | 7399 |
| Trucks of category “C” weighing up to 16 tons | 2807 | 5053 |
| Trucks of category “C” weighing over 16 tons | 4227 | 7609 |
| Bus category “D”, “DE” (less than 16 passenger seats) | 2246 | 4044 |
| Bus category “D”, “DE” (more than 16 passenger seats) | 2807 | 5053 |
| Bus category “D”, “DE”, if it works as a taxi or transports people | 4110 | 7399 |
| Tractor and other road construction equipment | 899 | 1895 |
Who will not be affected by the increase in the price of compulsory motor insurance?
Some motorists will be able to pay even less for an MTPL policy. These are those who:
- over 30 years old;
and wherein
- have a driving experience of at least 10 years.
The insurance policy coefficient for them will be 0.96 versus 1 previously. The coefficient of 0.99 on compulsory motor liability insurance will be valid for drivers 35-39 years old with 3-4 years of experience. With more than 4 years of experience - 0.96. The same coefficient is accepted for those who are 40-59 years old and whose work experience is at least 3 years. The lowest coefficient - 0.93 - for those over 59 years of age and whose work experience is at least 3 years.
Important announcement: Experience will now be considered for a specific category, whereas previously any driving experience was considered. Those who switched to cars after 10 years of driving a motorcycle will now be considered beginners. There is no point in hiding this, since everyone is checked before receiving compulsory motor liability insurance.
Insurance companies can always set the base value to the maximum, so you can count on the fact that prices for compulsory motor liability insurance for everyone will increase by 20%.
Vedomosti got acquainted with the final amendments of the Ministry of Finance to the law on compulsory motor liability insurance - they contain this proposal. The authenticity of the document was confirmed by the person who received it from the ministry, and a representative of the Ministry of Finance said that the bill had been sent to the government.
The Ministry of Finance is ready to allow insurers from September 1, 2019 to September 1, 2020 to set the cost of compulsory motor liability insurance policies at 30% lower or higher than the basic rates of the Central Bank, and from September 1, 2020 – at 40% lower or higher. In both cases, the maximum policy price cannot exceed three times the maximum basic tariff of the Central Bank.
The basic MTPL tariff corridor is currently 3,432–4,118 rubles; in May, the Central Bank warned that it would expand it to 2,746–4,942 rubles in the fall. Now the cost of the policy is determined by multiplying the base tariff by coefficients: for the driver’s experience, his age, the region where he is registered, and the engine power of the car.
The amendments of the Ministry of Finance gradually abolish the power factor (from September 1, 2019) and the regional coefficient (from September 1, 2020). To smooth out the consequences of the cancellation, the Ministry of Finance proposes to introduce a 30% and then a 40% deviation in both directions of the final policy price from the Central Bank tariffs, explains a representative of the ministry: so that the underestimation of the risk of one category of motorists is not compensated by funds from other categories.
A representative of the Central Bank says that the bank supports the Ministry of Finance’s bill, since the consistent expansion of the tariff corridor will be synchronized with the abolition of the regional coefficient and power factor. Now the price of a policy with coefficients can be twice as high or 40% less than the base one; after the abolition of the regional coefficient, the spread will be no more than 30%. The increasing coefficient for capacity can increase the price of the policy by 60%, continues the representative of the Central Bank, and after its cancellation, insurers will be able to increase the tariff by no more than 40%.
Insurers also liked the idea of the Ministry of Finance - previously they opposed the abolition of coefficients. The President of the Russian Union of Auto Insurers (RUA), Igor Yurgens, considers the Ministry of Finance bill to be a further liberation of the compulsory motor liability insurance tariff.
The Ministry of Finance warns that insurers will not be able to determine the unfair cost of the MTPL policy. The amendments provide that the Central Bank will monitor the loss ratio of companies under compulsory motor liability insurance (and first write a methodology and determine the minimum acceptable values). Companies that are found to be using economically unjustified tariffs will be issued orders, the Ministry of Finance threatens.
But the MTPL policy will not remain without coefficients. The Ministry of Finance proposed new ones, which, however, have already been discussed. The cost of the policy will be influenced by driving behavior: frequency of rule violations, severity of braking and changing lanes, frequency and duration of use of the car, etc. - however, it should be possible to record all this with telematic devices. Violations of rules not recorded by cameras can also increase the cost of an MTPL policy.
The final version of the amendments also retained one more previous proposal from the ministry - the transition to different types of MTPL policies with different payment limits. The document lists three options: the current one, i.e. 400,000 rubles. for damage to property and 500,000 rubles. – life and health; or both maximums – 1 million rubles each; or both maximums – 2 million rubles each. But you can take out a policy with large payments only with the consent of the insurer.
Another innovation recorded in the amendments of the Ministry of Finance is that motorists will be able to purchase compulsory motor insurance for three years at once (currently no more than a year), and the insurer will not be able to refuse them this.
In a wider range January 9, 2019. Let us remind you that previously it was 3,432 - 4,118 rubles, now its limits are from 2,746 to 4,942 rubles. However, before, most insurers chose the maximum rate, so now many have decided to further increase the base rate. This will clearly affect the final price of the policy: it will become more expensive.
As TASS reports, some major market players have already taken advantage of the opportunity and increased tariffs, and in a number of regions of the Russian Federation by 15-20%. Now the maximum rate for individuals, owners of passenger cars in certain constituent entities of the Russian Federation (unprofitable for insurance companies) is 4,736 - 4,942 rubles.
The minimum rate for these insurers is now 3,706 rubles, which is 8% higher than the previous minimum rate (it was 3,432 rubles) and only 10% lower than the previous maximum rate.
Of the twelve largest insurers in the Russian Federation, five companies have already published new tariff rates: AlfaStrakhovanie, Renaissance Insurance, MAKS, NSG-Rosenergo and ASKO-Insurance. The previous tariffs are currently listed on the websites of RESO-Garantiya, Rosgosstrakh, VSK, Ingosstrakh, Sogaz, NASKO and Soglasiya.
The current leader of the MTPL market (in terms of the number of concluded contracts) is AlfaStrakhovanie, its share is 15.3%. The company decided in some regions of the Russian Federation to raise the basic tariff for owners of passenger cars by 15% - up to 4,736 rubles. The increase, in particular, affected drivers of Novosibirsk, Ulyanovsk, Chelyabinsk, Nizhny Novgorod, Krasnoyarsk, Irkutsk, Voronezh, Belgorod, as well as Yakutia, Dagestan, Ingushetia, Kabardino-Balkaria and others. It was decided to leave the previous maximum level, for example, in Moscow and St. Petersburg.
The remaining four companies in many regions decided to immediately immodestly raise the maximum rate by 20%. Thus, the maximum tariff awaits MAX clients in St. Petersburg and the Leningrad region, Adygea, Dagestan, Ingushetia, Kalmykia, Krasnodar region, Rostov region and others. Another insurer, Renaissance Insurance, also did not ignore St. Petersburg and the Rostov region; the tariff also increased as much as possible in Primorye, Khabarovsk Territory, Astrakhan, Voronezh, Ivanovo regions, Crimea, Sevastopol and others. In Saransk and Saratov, the tariff, on the contrary, decreased.
The NSG-Rosenergo company increases the tariff for compulsory motor insurance in the Arkhangelsk region, Bashkortostan, Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, Chechnya, Crimea and Sevastopol, North Ossetia, Tatarstan, Tyva and Kamchatka by a maximum of 20%. ASKO-Insurance decided to leave the same tariff in the main regions of its presence - in Yekaterinburg and the Chelyabinsk region, but increased rates in the Tula region, Lipetsk, Kaluga, Voronezh and Belgorod.
When other companies decide to change tariffs, the Bank of Russia plans to conduct monitoring. Let us recall that at the end of last year the Central Bank noted that, while insurers were expecting an increase of 5%.
UPD: the Sogaz company today, January 11, rewrote tariffs in most regions of the Russian Federation, depending on the unprofitability of compulsory motor liability insurance in them. As a result, in 30 regions, including Moscow and St. Petersburg, rates were reduced.
09:06 — REGNUM In Russia, as of September 1, 2019, insurers may have the right to set the cost of a compulsory motor vehicle liability policy at 30% higher or lower than the base rates. The corresponding bill with final amendments by the Ministry of Finance of the Russian Federation has already been sent for consideration to the Russian government, Vedomosti writes.
Already on September 1, 2020, according to the amendments, auto insurers will be able to set the cost of an MTPL policy above or below the base rates within 40%. But all this is provided that the maximum price does not exceed the maximum base tariff.
At the same time, the Ministry of Finance proposes to cancel the power factor and regional coefficient.
The price of the policy will be influenced by driver indicators such as the frequency of rule violations, the severity of braking and lane changes, the frequency and duration of use of the car. In addition to everything, motorists will be able to purchase compulsory motor insurance for three years at once.
As reported IA REGNUM, according to amendments to the law on compulsory motor liability insurance, previously prepared by the Ministry of Finance of the Russian Federation, it is assumed, in particular, that insurers themselves will monitor the driving style of a motorist using a special device attached to the vehicle. Driving style, as well as the number of traffic violations, will be some of the factors that will affect the final cost of the MTPL policy.
Also, the document on the liberalization of compulsory motor liability insurance involves the introduction of three types of policies - with insurance amounts from 400 thousand to 2 million rubles. At the same time, it is proposed to abandon the existing coefficients tied to engine power and the place of registration of the vehicle in favor of new ones - in particular, the coefficient of traffic violations by the driver.
Background
Compulsory motor third party liability insurance (MTPL) first appeared in the USA - in the 1920s as a new type of insurance. Already in the 1940-1950s it gained popularity in Europe. In Russia, the law on compulsory motor liability insurance came into force on July 1, 2003, although the prerequisites for it were also in the USSR; the idea of introducing such a law was discussed back in the 1960s.
In mid-July 2019, it became known that the Russian government had introduced a bill on the liberalization of compulsory motor liability insurance to the State Duma. They are asked to cancel a number of coefficients, as well as allow the policyholder to “use a telematics device that records driving patterns.” Such a gadget will give the driver who installed it a discount on compulsory motor insurance if he is careful when driving.
Also in Russia it is planned to phase out the abolition of power factors and territories: the first - from October 1, 2020, the second - from January 1, 2020. From the beginning of 2020, the insurance amount for damage to life and health is expected to increase - from 500 thousand to 2 million rubles. And in June 2019, a bill was submitted to deputies for consideration that would significantly increase fines for drivers who do not have compulsory motor insurance.
