Repair instead of money: how the new rules OSAGO


April 28 came into force amendments to the law on compulsory insurance of civil liability (CTP). This document establishes the priority of the so-called natural compensation instead of monetary payments to insurers in most cases will ensure the repair of the victim’s vehicle at his own expense. However, the effect of the new law only applies to those car owners who signed the contract CTP c April 28.

However, as explained on 27 April, the Bank of Russia, if two or more parties to the accident feature of policies both under old and new rules, the form of reparation will be selected depending on what the contract is concluded with the insurance company paying the compensation. Simply put, if the perpetrator of the accident the contract was concluded after the 28th of April, the victims can count on car repairs, but if to 28 APR, then the cash refund.

Previously, motorists involved in an accident, was able to choose the format of the compensation — in the form of money or repairs, but not all insurers suggested both. According to the Deputy of the General Director “RESO-guarantees” Igor Ivanov, the national average of more than 20% of motorists choosing natural compensation.

Interviewed representatives of industry and experts are of the opinion that the amendments to the law were adopted in order to fight with unscrupulous lawyers. “Often, these avtoyuristy buying the rights of the victims to the insurance companies and independently submit to the court,” says the managing Director of ratings of insurance companies “Expert RA” Alexey Yanin. Then they get from insurance companies payment of court fees, lawyer service and various fines and compensations. The owners from the courts didn’t win anything, and insurers, by contrast, lost more than I should have been.

Representatives of the insurance industry say the mass nature of such litigation, which creates financial problems for the industry. In March the Russian Union of motor insurers noted that the proportion of court payments in 2011 was 15%, and in 2016 more than 50%. Especially problematic regions are the Krasnodar Krai, Rostov and Volgograd region. “These amendments will survive the auto insurance market,” — says Alex Yanin.

What has changed for the car owner

Procedure to apply for reimbursement remained the same. A motorist involved in an accident must call or email the company in which it bought insurance. The insurer is obliged within 14 days to give the victim a referral for repair, says the official representative of the Company Yury Nekhaychuk. In this case the insurance company needs to send the car for repairs in a service station no more than 50 km from the place of accident or home of the victim. If appropriate the workshops in a 50-km radius will be, the owner has the right to receive a cash payment.

“Previously the insurance company is obliged to conclude with the station maintenance annual contract, in which the repairmen confirmed the prices and techniques of the Russian Union of insurers,” — says Deputy General Director of “RESO-guarantee” Igor Ivanov. Specific criteria in addition to distance the Studio from the scene of an accident or home of the victim, the law is not spelled out. The client shall have the right to choose the most appropriate workshop provided by the insurance company list and the insurer, in turn, is obliged to organize transport to the desired workshop or to pay the insurance money.

Responsibility for repair lies with the insurer, and already before it meets the service station, said the lawyer Vadim Christmas. Therefore, under the new law, the client should not be in dispute with the repairer — all claims he will appeal to your insurer.

If there are any claims to quality of repair and the client will have to send the complaint to the insurer, who will have access to independent appraisers, says Christmas. According to the head of the Duma Committee on financial market Anatoly Aksakov, the poor maintenance will mean for insurers possible reputational or even financial losses (if the victim will submit to the insurance company to court), so it is in their interests to provide a good level of repairs.

What needs to be repaired

According to the amendments to the act, repairers are required to use to repair car new parts, not taking into account degree of its wear. If new parts for a vehicle requiring repair is not available, the insurer is entitled to propose to the garage to use the old parts. The final decision remains for the victims. The law does not specify who exactly should be the manufacturer of these parts, but if the car is less than two years, the shop in which it will send the repair must be authorized by the manufacturer of the car. That is, if repaired the Ford, it needs to send to the service with a certificate from Ford.

The repairer is obliged to finish the work on the car for 30 days. If you violate the terms of repairs the insurer will wait for the penalties. In particular, the insurance company will pay the client compensation of 0.5% of the insurance indemnity for each missed day. Also, if the projected duration of the repair — not in the stated period, the customer has the right to receive the money. Warranty repaired units is six months, painting a car a year. According to the amendments, claims under warranty the customer shall present to their insurer.

What about the money?

However, these amendments do not mean that the customer will no longer be able to receive payments: the document provides a list of exceptions. The consumer is entitled to a guaranteed cash payout if the car is not repairable; the victim suffered moderate or severe injuries; insurance get the relatives of the deceased in the accident; the victim is disabled; repair valued at a maximum payment of (400 thousand rubles).

Also the victim has the right to negotiate with the insurance company about the payment of money without relying on the list of exceptions. In such cases, the decision rests with the insurer. Yuri Nekhaichuk, however, said that his company intends to leave the issue of the format of the insurance payment (money or repair) at the discretion of the client. In turn, development Director of insurance IC “MAKS” Sergey Pechnikov notes that in each case the decision will be taken individually.

Pitfalls

The amendments do not solve a number of problems related to insurance, said Vadim Christmas. “They have replaced one problem to another. If earlier there were disputes about the size of payments, now will be disputes about the quality of repair,” he explains. The lawyer adds that if before the client was guaranteed the ability to pay for the best service, now everything depends on the decision of the insurer. “Maybe in the next six months will develop jurisprudence within the settlement”, — the expert concludes.

Chairman of the International Confederation of societies of consumers Dmitry Yanin inclined to believe that the new law will reduce the popularity of CTP. “After all the inevitable problems with the quality of repair and the time the people will resent this type of insurance imposed,” says Janine. Deputies partially mitigated the wishes of the insurance lobby, for example, has introduced into the law an article about the new parts and ignoring the depreciation of the car, said the expert.

Also the question remains about the growth of insurance fees. “When I calculated the cost of the insurance fees that the insurers did not take into account repair new parts, excluding wear and tear. Consequently, the rates will inevitably grow,” — said Ivanov from “RESO-guarantees”. With his words, however, disagrees the Director of insurance market Department of the Central Bank Igor Zhuk. In his comments he noted that while raising rates, companies will not be required, but the Central Bank will closely monitor the situation.

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