OSAGO 2021 – what’s new and what changes?

Will the price of OSAGO change in 2018?

Yes. The cost of the policy consists of the base rate and then the coefficients applied to it, mainly increasing the final price of insurance.

In May 2021, the Central Bank announced an increase in the final cost of the MTPL policy. The change is planned for the end of summer 2018 and will affect the increase in the range of applied prices for the basic insurance rate, as well as an increase in two coefficients:

1. across the insurance territory (region of Russia),
2. according to the experience and age of the driver.

The base rate will be increased from the corridor of 3432-4118 rubles to 2746-4942 rubles. But this will make the policy grow even more.

We discussed changes in prices for compulsory motor insurance in detail in a special article on the rise in prices of policies.

Today there is a 20% corridor for base rates (but rest assured, almost all insurance companies use the maximum figure in this corridor):

• for individuals for passenger cars: from 3432 to 4118 rubles,
• for legal entities for passenger cars: from 2573 to 3087 rubles.

The average cost of an MTPL policy for 2021 is just over 5,500 rubles.

Calculate the cost of your MTPL policy

Electronic policy

Changes await the insurance market in 2018 in terms of the use of electronic MTPL policies. The main innovation should be the consolidation of the right of car owners who have an e-MTPL policy not to carry a paper copy of the document with them to present to traffic police officers. The latter will check the driver and vehicle data online via the Internet.

Experts suggest that the number of those who decide to insure themselves via the Internet will only increase. This is due to the convenience of this type of insurance and its extreme accessibility. To take out e-OSAGO insurance you need:

• Select the insurance company you are interested in;
• Go to its online portal;
• Register;
• Select the appropriate section for purchasing services;
• Enter the required data and check it;
• Receive notification of acceptance of information;
• Log in to your personal account and select the required service;
• Make payment and receive the policy via email.

With all the advantages of the electronic format, it has some disadvantages, in particular, it makes it difficult to exchange data with other participants in relationships on the road, and also makes it difficult to verify the document’s authenticity.

It is worth noting that the electronic version of the MTPL policy is no different from the standard paper version of the document.

In general, it can be stated that any car owner has the opportunity to insure via the Internet, especially since since 2018, all insurers working with motor vehicle insurance are required to provide services not only in offices or through agents, but also through their own website.

The widespread introduction of electronic policies has allowed motorists to save on insurance. Thus, drivers can calculate the cost of compulsory motor liability insurance for all insurance companies using an online calculator in just a few minutes and choose the best offer.

Are MTPL policies changing?

Yes. They have already changed since January 1, and insurance companies only sell insurance with the new forms. There are few changes, but they are all quite significant. Let's look at them!

QR code

The most important thing is that the new MTPL policy 2021 now has a QR code measuring 2x2 cm, which allows, firstly, to identify it as not counterfeit, and secondly, to obtain basic information about the insurance holder.

So, when you scan the code (this can be done with any smartphone with the application installed), you will be taken to the website of the Russian Union of Auto Insurers, where you can find out information about the insured driver. In fact, this is the most basic information about the owner of the MTPL - what is indicated on the policy itself:

• name of the insurance company,
• insurance identification numbers,
• car data,
• validity period of the concluded MTPL agreement.

This can only be useful for determining whether the policy in front of you is real or fake. For example, when registering an accident under the European protocol, it will be possible to “break through” the non-fakeness of the policy. Doesn't this mean that drivers will soon be held responsible for neglecting such checks? It's a difficult question. But it's quite possible.

A policy with a QR code can only be obtained at the insurance office - when you apply for electronic insurance, you will receive a regular form by email.

KBM

But this change in OSAGO 2021 is already more pleasant for drivers, because many of us have already experienced a lost discount for accident-free driving due to inconsistency in the work of insurance companies (and, perhaps, elementary fraud on their part).

Now, the new 2021 policy form indicates the class at the beginning of the insurance, as well as a table with classes for each driver in case the policy has a limited number of eligible persons, for transparency in calculating the cost of insurance. Photo of such a new policy with a table:

That is, knowing the formula for calculating the accident-free class and the coefficients for the region and others, you can check whether the price of the insurance premium was calculated for you correctly. We suggest that you familiarize yourself with the article on a visual calculation of the KBM.

And in case the MTPL insurance is unlimited, the new policy also provides a field where the class of the owner at the beginning of the conclusion of the contract is indicated.

You will also be interested in:

• New MTPL tariffs in 2021 – increase in insurance prices in the tables
• New payments under the European protocol up to 100 thousand rubles - when will they come into force?
• European protocol for road accidents in questions and answers

ERA-GLONASS is helping insurers

From January 1, 2021, the emergency response system in case of accidents will be able to report to the insurance company about the incident. With this feature, insurers will be able to obtain information about the speed of the vehicle at the time of impact, the VIN number of the vehicle, and the location and time of the accident. In this case, the system will not allow you to edit the data. They promise that this option will help in registering the incident according to the European protocol. It will be paid, but not required. Starting next year, new cars will be equipped with updated ERA-GLONASS devices, and those who have old terminals installed will need to enter into an additional agreement with GLONASS JSC and reflash the device.

Will the insurance fine increase?

As of today (we monitor changes in Russian legislation every day), the fine remains the same:

• 800 rubles (400 rubles with discount) if you do not have insurance or it is expired,
• 500 rubles (250 with a 50% discount) if you are not included in the policy or the period of use of the car has expired.

Despite a number of news at the beginning of 2021 about changes to such a fine, all this news is nothing more than “fake”. We have a special article about such news in 2021, and another one about the current fine for lack of insurance.

In the meantime, there is no news from official sources that such a fine may increase before the end of 2021. If this happens, the article will be updated, and you can subscribe to changes in the article below.

Penalties for lack of insurance

In 2018, penalties for drivers operating a car without insurance should also change. Today the fine for this offense is only 800 rubles. Starting next year, the possibility of increasing it 10-fold to 8 thousand rubles is being considered. Legislators believe that such a measure will have an stimulating effect on drivers, encourage them to take out compulsory motor liability insurance and make it possible to more effectively combat counterfeit policies that periodically appear on the “black market.”

If the vehicle is operated during periods that do not fall within the interval specified in the insurance, traffic police officers in 2018 will issue a fine of 800 rubles, while the amount of the penalty for not having a policy on which the driver is actually registered , provides for penalties in the amount of 500 rubles.

In turn, it was decided to leave unchanged the application of the rule allowing drivers subject to penalties to pay only half of the specified amount in cases where payment was made no later than 20 days from the date of the relevant resolution. It is believed that this measure encourages car owners to pay fines on time.

Will there be a MTPL reform in 2018?

Unlikely. The reform proposed by the Ministry of Finance of the Russian Federation includes the following innovations:

1. variations in the maximum payment under compulsory motor liability insurance from 400 thousand rubles to 2 million and dependence on the policy cost limit in 2018,
2. abolition of a number of coefficients (based on car power and region of residence of the car owner),
3. additional increasing coefficient for legal entities.

However, today all 3 of these changes are met with criticism and rejection by other legislative departments.

Thus, the variability of the maximum compensation limit is criticized because of the very essence of compulsory motor liability insurance - after all, it is the driver’s liability that is insured under the auto insurance policy, and the victim will thus depend on the desire of the culprit to be insured at one or another limit. However, there is still some logic in the variability of limits, and what exactly the Bank of Russia did not like about this, which opposed the change, remains a mystery.

But there will be changes in the odds. Thus, an additional coefficient for organizations was proposed by the insurance companies themselves, complaining that most often there is no information about which driver will drive such a vehicle and how long his experience and age are. But this is just a suggestion.

But, as we noted above, 2 coefficients will increase: territorial and by age and experience of drivers. Insurers are also proposing to introduce a new coefficient based on vehicle mileage.

Thus, of the listed innovations in the MTPL reform, only changes to the base rate and two coefficients are planned for 2018.

Basic rules of insurance

Purchasing an MTPL policy is mandatory for all car owners. A driver's lack of insurance can result in significant financial losses. This applies not so much to the administrative fine of 800 rubles, but to compensation for material damage after an accident. After all, if it turns out that the driver’s actions caused the accident, he will bear all the costs of paying compensation to the victims.

To avoid such a development of the situation, it is necessary to take care of obtaining a civil liability policy in a timely manner. Today, the MTPL insurance rules allow concluding an agreement with a client via the Internet. This greatly simplifies the procedure.

To obtain insurance, a citizen must submit an application and provide a list of documents with information about the vehicle, as well as about all drivers who will be allowed to drive this car. Information must be specified as accurately as possible, since any mistake by the client can be regarded as deliberate deception. Accordingly, the insurance company has the right to reduce the amount of payments or refuse compensation altogether. The conflict over compensation can only be resolved in court.

Download the “Law on Compulsory Motor Liability Insurance”

What is said about OSAGO

Changes in Federal Law No. 40, which came into force in 2015-2017, may seem insignificant to some. But they must be taken into account in any case, since each addition to the law affects the procedure for concluding an agreement with the insurance company. Registration of an MTPL policy takes into account a number of conditions, the most important of which are the following.

1. Compensation in the event of an insured event occurs not according to the actual damage, but according to the maximum amount of coverage. If the victim suffered only material damage, then the maximum payment amount is 400 thousand rubles. In the event that there are physically injured citizens as a result of an accident, the maximum compensation will reach 500 thousand rubles. for each of them.
2. The price of an insurance policy is determined taking into account the base rate and increasing factors. These include engine power, KBM, driving experience, number of drivers, existing violations.
3. Payment for the insurance policy is made by bank transfer through a bank or in the form of electronic payment.
4. After concluding the contract, the client must receive not only the policy, but also a copy of the agreement with the insurance company.

Consideration of the issue of compensation under MTPL must be considered within 10 days after the driver submits the request. Payments are made no later than 20 days (excluding weekends and holidays).

Registration of an electronic policy

Current auto insurance rules provide citizens with a choice: enter into a regular paper contract or submit an application electronically. In the latter case, information about the client and the vehicle is entered through the official website of the insurance company.

The MTPL e-policy is issued in the form of a PDF file sent in a letter to the email address specified during registration. To present the insurance to the traffic police inspector, the driver will have to print this document. It does not require notarization.

Changing the procedure for compensation of damages

The Law on Compulsory Civil Liability Insurance of Vehicle Owners states that payment must be made within 20 days after the driver’s application. There is reason to believe that in 2021, the State Duma may introduce amendments to extend this period to a month. However, this proposal is currently under discussion.

Possible changes in insurance payments under MTPL policies in 2018 include the following.

• Euro protocol – the maximum amount of compensation increases from 50 to 100 thousand rubles.
• In the event of the death of the victim, out of 500 thousand rubles. the total amount of compensation is 25 thousand allocated for burial, 475 thousand rubles. - to the heirs of the deceased.

Another important innovation is that residents of Moscow, St. Petersburg, the Moscow and Leningrad regions now have the right to apply for insurance payments without having to provide a certificate from the traffic police. For citizens living in other regions, the procedure remains the same.

Regarding the question of when the new Law No. 40 “On Compulsory Motor Liability Insurance” on insurance payments will come into force in 2021, the answer is clear. The changes adopted by the State Duma are fully effective from January 1.

Registration of the European protocol

As before, if there are no physically injured citizens in the accident, and if the nature of the damage to the colliding vehicles is minor, drivers may not call traffic police officers to the scene of the accident. You can resolve the problem yourself. The only exceptions are cases where the accident caused damage to the property of third parties. Also, you cannot do without calling a traffic police inspector if more than two vehicles collide in an accident.

To receive compensation under the MTPL policy, drivers need to fill out a tear-off European protocol form and submit it to the insurance company. Considering that amendments to Law No. 40 related to the simplified registration procedure were not adopted this or last year, the procedure remained the same.

It is important for motorists to remember that the maximum amount of insurance payments under the European protocol is 50 thousand rubles. And the registration procedure itself is permissible only when there is no disagreement between drivers regarding the true culprit of the accident.

About repairs

In 2021, a rule was added to the Law “On Compulsory Motor Liability Insurance” allowing the client to choose between monetary compensation and restoration of the damaged car at the expense of the insurance company. For many drivers, in-kind compensation is more beneficial because it saves time and money. After all, it is not the car owner who is responsible for repairs under compulsory motor liability insurance, but the insurance company.

If the driver has chosen compensation in kind, he must know certain rules of this procedure:

• a car service center or workshop must be located within a radius of up to 50 km from the residence address of the car owner or from the scene of an accident (if the vehicle was damaged in another region);
• When carrying out repairs, it is prohibited to use used spare parts;
• The minimum warranty period for work performed should be 6 months (for body painting - 1 year).

It should be noted that the insurance company does not have the right to impose repairs instead of monetary compensation. The choice remains with the car owner.

Procedure for terminating a contract with an insurance company

Despite the fact that a compulsory motor liability insurance policy is usually purchased for 12 months, it can be terminated early, with a partial refund of the amount for the unused period. But this possibility is provided only in limited cases. In accordance with paragraphs. 33, 33.1 Federal Law No. 40, you can terminate the MTPL agreement when selling a car if:

• the car was sold to another owner;
• the car was scrapped or cannot be restored after an accident;
• the owner of the vehicle died.

The insurance company is also obliged to return money to clients in the event of bankruptcy. But in practice, such a situation can be considered almost unrealistic.

About KBM

On January 1, 2021, a number of changes came into force in the law “On Compulsory Motor Liability Insurance”:

• a new form of forms has been introduced;
• the “cooling off period” has been increased from 5 to 14 days (the client has the opportunity to cancel insurance with a full refund);
• information about road accidents began to be transmitted to the MTPL system via ERA-GLONASS.

Regarding the bonus-malus coefficient (BMC), its calculation will be changed only from July 1, 2021. The Central Bank plans to cancel some of the increasing coefficients: territorial, engine power, age and length of service of the driver. According to the Central Bank of the Russian Federation, insurance companies are given the right to take into account this data on an individual basis.

Payment of penalties

Violation of the contract by the insurance company obliges it to additionally compensate the client for waiting time. According to paragraph 21 of Art. 12 Federal Law No. 40, the calculation of the penalty for compulsory motor liability insurance occurs in the amount of 1% of the total amount of insurance payment for each day exceeding 20 days from the date of filing the application (excluding weekends and holidays). The penalty is charged regardless of whether the driver was given a reasoned refusal to pay monetary compensation or a referral for repairs.

Insurance case

What should a car owner do after an accident? According to paragraph 3 of Art. 11 Federal Law No. 40, after an accident or other situation covered by the MTPL policy, the driver is obliged to inform the insurance company about what happened as quickly as possible. It is recommended to do this immediately after ambulance officers (if there are victims) and the traffic police are called to the scene of the accident. The maximum period within which a driver must notify the insurance company of an accident is 5 business days. In order not to give grounds for accusations of violation of the terms of the contract, it is better not to forget this.

The procedure for registering an insured event under compulsory motor liability insurance requires the mandatory completion of a policy form. If there are no disagreements between the participants in the accident, you can refuse to call the traffic police. In addition to filling out the European protocol, the driver must take photographs of the accident scene from different angles. This will help determine the cause of the collision and the nature of the damage.

If a video recorder was installed inside the car that recorded an accident, this recording must be saved. It can be used as evidence if there are controversial issues during the qualification of the client’s actions.

Will insurance become more expensive if there are traffic violations or fines?

No. At least not in 2021. This amendment, by the way, was also proposed as part of the MTPL reform, but it was not destined to come true.

The reason here is simple, and it has a lot in common with the cancellation of the accident certificate last year - the traffic police simply did not give the go-ahead to provide the database of violators to insurance companies. The argument was a reference to the Federal Law “On the Police”, and without specifying a specific article or paragraph. But if you try to search yourself, you will not find a word in the law about prohibiting interaction with third-party organizations or violating the rights of a citizen by transferring information to them. However, the disagreement of the traffic police only plays into the hands of ordinary motorists, because many have fines.

The initiative was based on completely good intentions - if a driver often violates traffic rules, which is reflected in the fact that he has fines, then this means that he is also more likely to get into an accident and become the culprit. And you must agree that this is quite logical! Especially if, to increase the cost of the policy, not all violations of the Rules were taken into account, but only certain ones, for example, such as dangerous driving, repeated speeding, violations of intersections or intentional violations. And such things as driving beyond the stop line, excessive tinting or installing prohibited types of lamps in the headlights - things that do not have a direct impact on the possibility of an accident - were not taken into account.

Something else useful for you:

• What changes are being made to compulsory motor liability insurance from April 1, 2021? Will insurance become more expensive?
• Increasing the fine for driving without compulsory motor liability insurance to 5,000 rubles from January 1, 2021 - true or false?
• The danger of the European protocol - what if the culprit did not provide notice within 5 days?

Last changes

According to current legislation, a citizen who was driving a vehicle bears full responsibility for the consequences of an accident that occurred through his fault. Depending on the presence of victims and the amount of damage caused, Federal Law 40 “On Compulsory Motor Liability Insurance” with the latest amendments in force in 2021, provides for partial or full compensation. At the same time, the policy exempts the direct culprit of the accident from paying monetary compensation. This responsibility, within the amount specified in the contract, is assumed by the insurance company.

The new edition of the law “On Compulsory Motor Liability Insurance” includes the following additions.

On what date does the new Federal Law “On Compulsory Motor Liability Insurance” come into force? The changes presented in the table were adopted back in 2017. This means that the provisions of the law are in effect from the moment the document is signed by the speaker of the State Duma and the president. As of 2021, most of the changes in Federal Law No. 40 have already entered into force. Additions regarding the KBM will take effect from 07/01/2018.

Are the rules for compensation under compulsory motor liability insurance changing?

Yes. And very significant.

Let's start with the main thing - compulsory motor liability insurance now covers only part of the damage, and the rest can be recovered directly from the culprit. This conclusion was made by the Constitutional Court of Russia, which considered that if compensation, taking into account wear and tear, from the insurance company does not fully cover the actual damage to the victim, then his constitutional right to property has been violated. But since there is nothing to take from the insurance company (after all, a unified calculation method taking into account wear and tear is approved in the Federal Law “On Compulsory Motor Liability Insurance”), then let the victim demand the difference from the culprit.

We will leave all the illogicality and absurdity of this change, as well as discussions on the topic of eradicating the very principle of protecting the culprit with insurance, for comments in our special article about compensation for the difference directly from the culprit.

However, this situation only applies to payment in money - in the case of a referral for repairs, no wear and tear can be considered insurance coverage.

It was at the beginning of 2021 that the practice of suing the culprits directly for compensation for the difference became widespread.

Reform in the KBM payment system

Insurance organizations are ready to reduce the cost of insurance for accident-free drivers, which would be fair, and apply the maximum rate to young drivers due to high loss rates. The idea of ​​an individual policy tariff, which will be introduced by the new MTPL rules, will promote objective and flexible calculation. Each driver will have a single insurance history, which will not be reset, even if there was a break in driving. According to the current rules, quite often the driver and the car owner are assigned unequal KBM. For each year of accident-free driving, 0.5 coefficient will be deducted.

If the driver passed:

• 5 years without an accident, the BMR will be 0.75;
• 10 years without accidents, MFC will be reduced to 0.5;
• in case of two or more accidents, the rate will increase to 2.45.

For the fleet of legal entities, they are going to introduce the same bonus-malus coefficient of 1.87 for all vehicles. For individuals who are owners of a vehicle, as well as individual entrepreneurs, when the number of drivers is minimal, the BMR is 1, if the number of drivers is not limited - 1.87.

Insurers proposed to establish discounts on KBM for accident-free driving for a year. Thanks to these innovations, the cost of an MTPL policy can be reduced for a third of car owners. But for 15% the cost will increase significantly, according to a representative of Alfastrakhovanie. For the rest of the drivers, the cost will remain virtually unchanged. According to the RCA forecast, about 20 regions of Russia expect a reduction in compulsory motor liability insurance tariffs.

KBM in a new way

Bonus malus coefficient (BMC) is a category that influences the formation of the cost of the policy. An insured who has not committed or been involved in any accidents during the year receives a discount or, conversely, an increased payment when extending the insurance legal relationship.

The new calculation will depend on the number and severity of accidents in previous driving periods.

The policy price is formed:

• on the age and length of service of the “PIC”;
• region of car registration “KT” (for example, in Moscow the coefficient is set to 2.0);
• vehicle capacity;
• number of persons;
• validity period;
• belonging to a car to an individual (legal entity).

The amount is calculated based on the following items:

• “TB” insurer’s tariff equal to 3432 rubles – 4118 rubles;
• “CT” territorial coefficient (for example, in the capital the coefficient is set to 2.0);
• “KBM” driver class (presence of accidents);
• “KVS” age rate and length of service;
• “KO” the number of persons admitted to management (the rate is set from up to 1.8);
• KS" operation of a vehicle for less than 10 months (0.5) or more than 10 (1);
• “CN” for violation of the insurance contract (1 or 1.5).

An increase in the cost of insurance will affect an increase in compensation payments to 1.5 million rubles.

Compensation for road accidents

The Ministry of Finance has made a proposal to introduce new insurance terms. It is planned to increase the duration of the contract to three years instead of one, as it is now. In the second and third years, it is proposed to make a discount by introducing, respectively, three options for the sum insured for damage to property and life:

• 400,000 and 500,000 rubles;
• 1 million rubles;
• 2 million rubles.

After amendments are made to Federal Law No. 49 dated March 28, 2017, the damage is assessed, then the policyholder is issued a referral for repairs, and the car is sent to a service station. No cash payments are issued; restoration and overhauls are paid for by the insurer in accordance with the concluded agreement with the service station. Damaged parts and mechanisms are replaced with new ones. To calculate the cost, the Central Bank algorithm is used using special indicators. But there are cases when the policyholder or heirs are entitled to a cash payment:

• death of the victim;
• the vehicle cannot be restored;
• the cost of repairs exceeds the limit of 400,000 rubles;
• the insurer does not have the opportunity to fulfill the terms of the agreement other than to pay monetary compensation;
• the owner of the car is a disabled person of group I or II who has written an application for monetary compensation.

The law provides for the following amounts of compensation:

• 500,000 rubles for causing harm to the life or health of the victim;
• 400,000 rubles for damage to property;
• 50,000 rubles for registration of an accident without a state traffic inspector;
• 500,000 rubles for the death of the victim, of which 25,000 are funeral costs.

New gradation of coefficient by age and length of service (KVS)

The Central Bank approved the idea of ​​expanding the range of the coefficient by age and length of service, where instead of five categories it is planned to introduce 50. The KBC coefficient will be set as follows:

• the upper level will be set for young motorists from 16 to 21 years of age without experience - FAC is 1.87;
• the minimum FAC for motorists from 21 to 30 years of age without experience is 1.63;
• for those drivers who are over 30 years old and have 10–14 years of experience, the FAC is 0.96;
• for drivers over 35 years of age with 7–9 years of experience, the FAC is 0.96.

If the vehicle is not registered in Russia, then when purchasing an MTPL policy, the FAC for individuals and individual entrepreneurs will be 1.7, and for legal entities - 1.

Payments - changes and surprises

Previously, a citizen could count on monetary compensation for damage received only up to 160,000 rubles. Next year the payment rules will be different. Thus, due to the increase in the cost of the insurance document, it is also expected that payments for damage to the vehicle will increase. Maximum payments can reach up to 1.5 million rubles, but this is for serious accidents and deaths. The average compensation amount is 400,000 rubles.

The vehicle owner can choose to repair his car or pay money. The new legislative act will establish specific repair periods - 30 days. Repair of damaged vehicles must be carried out at stations that have entered into agreements for the provision of services with the company or by prior agreement with the company.

What to do if they require additional payment for repairs? In the new legislative act, this issue will be resolved in favor of the policyholder:

• installation of used parts will be excluded;
• When assessing the condition of a car, a unified methodology will be used, based on the results of which the insurer is obliged to objectively provide an assessment for future repairs.

The payment period in 2021 to cover damage will be 20 days from the date of submission of documentation to the insurer. To reduce claims for unpaid damages, penalties will be established for delaying the decision on payments (0.5% of the amount). If a citizen does not provide a package of documents within the specified period, then a late fee will be charged (1% of the total payment amount).