The Bank of Russia proposes an additional expansion of the range of premiums in compulsory motor third party liability insurance (OSAGO), so that insurers have more opportunities to reduce premiums for good drivers and raise them for high-risk drivers. The Bank of Russia has published this draft ordinance to evaluate its regulatory impact.
The expansion of the range of basic insurance premiums both downwards and upwards will be as follows: by 10% for individuals’ cars; by 4.9% for public transport (regular passenger buses, trolleybuses and trams); and by 30% for other vehicles, including taxis.
Considering the results of the analysis carried out by the Bank of Russia, the coefficients depending on a driver’s age and driving experience and the bonus malus coefficients are planned to be revised. As a result, an additional discount will equal up to 8% for adult and experienced drivers and up to 8% more for careful and accident-free drivers. Young inexperienced and careless drivers will pay more. Furthermore, regional coefficients will be readjusted as well.
Insurers have been applying customised premiums since September 2020. Over the year after the premium range was expanded by 10% both downwards and upwards, the average insurance premium for individuals’ cars lowered by 0.47% compared to August 2020. Moreover, there was a nearly twofold increase (to 36%) in the portion of drivers who saved over 10% when they extended their OSAGO agreements.
See PDF here: https://www.cbr.ru/StaticHtml/File/41186/211020-53-1.pdf
This news item was originally published by the Central Bank of the Russian Federation (CBR RU). For more information, please see the Source Link.