Payments under compulsory motor liability insurance - amount of coverage and payment terms in 2021

Terms and payments under compulsory motor liability insurance in 2021

Insurance payments under compulsory motor liability insurance are a very important topic for every motorist, as is the principle of choosing your own insurance company. After all, in the event of an accident, the insurance company is obliged to pay out insurance coverage on time. But the problem is that in practice many insurance companies suffer from delays. Often their clients have to go to court. Therefore, it is very important to choose a reliable insurance company.

Payments in case of an accident

Payments in the event of an accident under compulsory motor liability insurance are due to the innocent driver. The MTPL agreement is a guarantee of payment of damages to the victim in a traffic accident. This may be harm to the health, life, or property of a citizen.

In order to receive payments from insurance companies under compulsory motor liability insurance, you can use the standard method and according to the European protocol.

Payment of compulsory motor liability insurance under the European protocol is carried out according to independently prepared documents, without the participation of the traffic police. Such an accident must occur under the following conditions:

1. Participation in a two-vehicle accident
2. No damage to health, life, or other property
3. Minor damage to the vehicle
4. The participants in the accident came to an independent agreement on the circumstances of the accident and have no claims against each other
5. Participants have an issued MTPL policy

In this case, the injured participant in the accident must contact his insurance company within five days after the accident for compensation for damages. After the application, the vehicle will be inspected by a representative of the insurance company. In turn, the person responsible for the accident must also contact his insurance company within the same five days with a notification of the accident. Otherwise, the insurance company may demand a refund of the amount paid to the victim. The vehicle can begin to be repaired only after 15 days.

If any condition according to the European protocol method is not met during an accident, you will need to call the traffic police and resort to the standard method of registering an accident.

Insurance payments under compulsory motor liability insurance

Taking out a compulsory car insurance policy allows you to receive compensation for damage caused by the driver to other road users and their vehicles. To receive payment, you must contact the insurance company with a set of documents listed in the contract.

After this, the auto insurer must transfer the required amount to the injured party within 20 business days. If there is no payment, the policyholder is given another 5 days to apply again. If the insurance company refuses to pay again, you need to contact the regulatory authorities (Prosecutor's Office, RSA), the regulator (Central Bank of Russia) or the court.

It is important to consider that current legislation allows not only compensation in the form of monetary payment, but also repair of the damaged car. In this case, special rules apply for compensation for damage caused to a vehicle, which are not related to the topic of this article.

How to get MTPL insurance in 2021

To apply for compulsory motor liability insurance, select a company and contact the office or submit an application online. To obtain a policy you will need:

• Driver's license of the owner of the vehicle and all persons who will be allowed to drive it.
• Vehicle Passport (PTS).
• Results of technical inspection (diagnostic card) with a positive conclusion.
• Certificate of registration of the vehicle, if the vehicle is registered with the State Traffic Safety Inspectorate.
• Application for concluding an MTPL agreement.
• Passport or other identification document. For legal entities, instead of a passport, you need a certificate of tax registration of the legal entity.
• A document confirming ownership of the vehicle, if it is not registered with the traffic police. Or a document confirming ownership of the vehicle, if it is leased.

What determines the cost of the policy?

The minimum and maximum tariff levels are set by the Bank of Russia. From September 5, 2021, the basic tariff is:

• for individuals and individual entrepreneurs - from 2,471 to 5,436 rubles;
• for legal entities - from 1,646 to 3,493 rubles;
• for a taxi - from 2,877 to 9,619 rubles.

The main parameters influencing the cost of compulsory motor liability insurance:

• number of drivers, their experience;
• car power, make and year of manufacture, mileage;
• region of registration at the place of residence of the vehicle owner;
• the number of insurance claims in previous years;
• time of use of the vehicle.

In addition to the base tariff, when calculating the cost of compulsory motor insurance, the bonus-malus coefficient (BMC) is used. The insurance company evaluates the risk of an accident and makes the policy cheaper or more expensive for the driver.

If the driver is involved in an accident, the insurance company applies an increase factor. For accident-free driving, on the contrary, a reduction factor is provided: -5% of the policy cost for each year without an accident. As a maximum, you can get a policy 50% cheaper (CBM = 0.5).

Sometimes the insurance company makes mistakes when calculating the BMR. If this happens, the driver needs to collect documents:

• all MTPL policies or copies thereof (paper or electronic);
• passport;
• driver's license.

Check all previous policies using the PCA database, starting with the most recent one. When you find a discrepancy, contact your insurance company. The application will be reviewed within 10 working days and the correct data will be entered into the RSA database.

What to do if the insurer refuses to issue compulsory motor liability insurance

The MTPL agreement is public: the desire of one of the parties is sufficient to conclude it. Clause 14 of the OSAGO Rules is unambiguous: each car owner chooses an insurance company at his own request, and if all requirements are met, it does not have the right to refuse to provide services.

Based on clause 7 of Art. 15 of the Law on OSAGO and the Procedure for notification of refusal issued by the RSA, there is a list of reasons for refusal to issue a policy:

• there is no connection with AIS SAR;
• an incomplete set of documents was submitted;
• the owner of the vehicle has not passed the technical inspection;
• There is no power of attorney to conclude an agreement on behalf of an individual entrepreneur or legal entity.

The make and age of the car, driving a motorcycle, short driving experience, village registration and other reasons cannot be a reason for the insurance company to refuse to issue an MTPL policy.

The refusal can be appealed. To do this, you need to receive a written refusal from the insurance company - you won’t be able to prove the refusal in words.

You can appeal a refusal by filing a complaint with:

• RSA;
• District court at the place of residence;
• Territorial division of the Central Bank of the Russian Federation;
• Federal Antimonopoly Service.

To do this you need to provide:

• an application with a stamp, signature and date of acceptance by the insurer's representative or notification of receipt if the documents were sent by mail;
• refusal to issue an MTPL policy in writing.

Amounts of insurance payments

The current version of the basic document in the field of compulsory motor insurance - No. 40-FZ (dated April 25, 2002) establishes the following maximum amount of compensation for compulsory motor liability insurance:

• 400 thousand rubles. – when causing damage to the victim’s property;
• 500 thousand rubles. – when causing harm to his life or health.

It is possible to claim a larger amount under compulsory car insurance if such a clause is contained in the text of the contract concluded with the insurance company. Otherwise you will have to go to court.

For greater clarity, it makes sense to consider several practical situations, each of which has different rules for determining the amount of compensation. The most common ones are the following.

In case of an accident according to the European protocol

If an emergency is registered using the Europrotocol, the maximum amount of insurance payment is 100 thousand rubles. Moreover, we are talking exclusively about the damage caused to the vehicle. If people were injured, such a scheme for resolving a conflict situation that arose as a result of a traffic accident is not allowed.

At the legislative level, it is allowed to increase compensation to the maximum amount under No. 40-FZ of 400 thousand rubles. In practice, such a situation is impossible, since it requires the simultaneous fulfillment of three conditions. Two of them are quite achievable: road accidents in Moscow, St. Petersburg, the Moscow region and the Leningrad region, as well as recording the incident with a GLONASS-enabled device. But the third is unrealizable, since it involves processing data with a special program, which has not yet been developed or, at least, not put into operation.

In case of car damage

The amount of compensation in this case is determined on the basis of an expert opinion. If the policyholder does not agree with the appraiser's conclusions, he initiates an independent examination. The data obtained from its results become the basis for going to court.

The car cannot be restored

In practice, a situation often arises when the maximum payment amount, equal to 400 thousand rubles, does not cover the damage, since the vehicle simply cannot be repaired. In this case, compensation for the actual cost of the car is allowed, even if it exceeds the established limit.

Funds in excess of 400 thousand rubles paid to the injured party are recovered from the culprit of the traffic accident.

Damage to life or health has been caused

The current rules for determining compensation for harm caused to the health and life of a person injured as a result of an accident link the amount of payment to the severity of the damage. The table of payments under compulsory motor liability insurance for personal injury is given below.

If the accident results in death, the maximum possible compensation is paid in the amount of half a million rubles. Funds are distributed as follows:

• 475 thousand rubles. are transferred to the beneficiaries of the deceased;
• The remaining 25 thousand rubles. sent as reimbursement for funeral expenses of the deceased.

Procedure for compensation for damage in case of an accident

Many companies offer online calculations on their own websites through PCA. However, in order not to waste time, it is important to follow the rules. The procedure itself is:

1. After an accident, you should stop the car and assess the level of damage. In case of victims, it is necessary to provide medical assistance and call an ambulance.
2. Contact a traffic police representative and issue a call to the scene of the accident.
3. Notify the insurance company.

A special role should be given to filing an application. The application should indicate:

1. Name of the insurer and its legal address.
2. Full personal details of the applicant.
3. If the application is submitted by a proxy, you must provide documents confirming the delegation of authority.
4. All details about the accident: Date, method of recording the accident, type of damage, all circumstances of the situation.
5. Information about the car.
6. Information about the culprit of the accident.
7. Information about the technical examination carried out.
8. Additional information about losses incurred as a result of the accident.

Sample application for payment of damages after an accident:

You can download a sample application or form in word format.

What is not reimbursed under compulsory motor liability insurance?

The provisions of No. 40-FZ clearly regulate the list of grounds in the presence of which payment under compulsory motor liability insurance is not made. It includes:

• intentional harm;
• being under the influence of alcohol or drugs;
• lack of legal grounds for driving a vehicle (deprivation of rights, non-inclusion in MTPL insurance, etc.);
• failure to comply with the procedure for registering an insured event established by the rules of compulsory motor insurance;
• leaving the scene of an accident;
• providing false information when applying for an MTPL policy;
• lack of compulsory insurance, etc.

How to apply for compulsory motor liability insurance online

From January 1, 2021, all insurance companies sell electronic MTPL policies on their official websites. It will only take 10-15 minutes to complete the registration.

Registration of compulsory motor liability insurance online:

1. Choose the right insurance company.
2. On the insurance website, fill in the required data in a special form: car make, year of manufacture, engine power, number of drivers, length of service, etc.
3. Upload the required documents (similar to the office registration package).
4. Pay the insurance premium with a bank card.
5. The policy will be sent to your email in PDF format. Print it out and include it with your driver's license and other documents.

If you need a paper policy, but don’t want to go to the insurance office, there is another option for issuing compulsory motor liability insurance via the Internet. The driver leaves a request on the insurer's website. The consultant calls back, clarifies the data and issues an invoice for payment. Within a couple of days, the courier delivers the policy to a location convenient for the client. In addition, insurers themselves often call clients and remind them that the deadline for replacing their MTPL policy is approaching and offer to issue it and deliver it remotely.

Forms of insurance payments

Starting from March 2021, another form of damage compensation has been introduced within the framework of compulsory motor liability insurance. It involves repairing the injured party’s vehicle. But the legislation stipulates several situations when only insurance payment is allowed. Among them:

• the victim is recognized as a disabled person of the first or second group;
• the amount of damage exceeds 400 thousand rubles;
• severe harm to health has been caused, including death;
• the machine cannot be repaired;
• a car service accredited by an insurance company either cannot perform repairs or is located at a distance exceeding 50 km from the location of the car.

How to check OSAGO online

It is important to check not only your policy when applying for it, but also other drivers, for example, if you are involved in an accident. When purchasing, you should check the policy so as not to fall for the tricks of scammers. Often intermediaries sell invalid policies or issue them incorrectly.

Also, for organizations that have their own vehicles, it is better to regularly check the validity of compulsory motor liability insurance policies for each car, otherwise in case of an accident you can end up with a large sum of money.

To check the policy, go to the RSA website and open the “Vehicle Details” tab. Indicate the VIN of the car for which you want to check the availability of the policy. The site will show all MTPL policies that have ever been issued for a car. If the policy is invalid, the service will notify you about this.

Answers on questions

Which insurance company should I contact?

If an insured event occurs under compulsory motor liability insurance, you need to contact the auto insurer that issued the policy to the person at fault for the accident.

How is compensation distributed if two parties are at fault?

There are two possible solutions to the problem. The first is the distribution of payments by 50% to each party. The second is resolving a conflict situation by going to court. The initiator of filing a claim can be both the participants in the traffic accident and the insurance companies that issued them OSAGO policies.

When does the MTPL policy not cover damage from an accident?

If its value exceeds the maximum amount of compensation, which is 400 thousand rubles. The remaining amount will have to be paid by the guilty party, but recovery will require going to court.

What determines the amount of insurance payment?

Insurance compensation under compulsory motor liability insurance is determined taking into account several factors. The first is the nature of the damage. If we are talking about harm to human health and life, its severity is then determined. The maximum compensation for damage in an accident resulting in the death of one or more people is half a million rubles.

In a situation where damage is caused to a vehicle or other property of the victim, compensation under compulsory motor liability insurance does not exceed 400 thousand rubles.

When are payments under compulsory motor liability insurance not made?

A detailed list of such cases is given in No. 40-FZ. A typical example, often encountered in practice, is the presence of a driver in a state of intoxication, drugs or alcohol.

Fine for lack of compulsory motor liability insurance on the driver

According to the traffic rules, the driver is obliged to hand over documents to the traffic police officer, including the MTPL policy (clause 2.1.1 of the Russian Traffic Regulations). A fine is imposed if:

• No insurance.
• The validity period of the compulsory motor liability insurance has expired or has not yet begun.
• The driver is not included in the vehicle policy. An exception is a policy without driver restrictions.

The fine for lack of compulsory motor liability insurance or for an expired policy is 800 rubles.

In the first 20 days from the date of the decision, the fine can be paid with a 50% discount, the amount will be 400 rubles.

If the driver nevertheless took out a policy, but did not take it with him and could not present it to the inspector, the fine will be 500 rubles (Part 2 of Article 12.3 of the Code of Administrative Offenses of the Russian Federation). This does not apply to the electronic MTPL policy: the Supreme Court outlined this in Plenum Resolution No. 20 of 2019.

How is the calculation done?

You can find out what the payment may be under a compulsory motor liability insurance policy from a specialist at the company where the insurance contract was concluded. Many of the companies offer an insurance calculator on their websites. The main indicators taken in the calculation are:

1. The nature of the necessary repairs and the costs of carrying them out (replacing old parts with new ones).
2. When calculating the final cost, the region is taken into account, since each of them has its own average price for services and goods.
3. Car make and year of manufacture, wear and depreciation.

If a new car was damaged during an accident, then all payments are made at the prices of the MTPL dealer. A unified calculation methodology is used for the calculation.

The calculation is made using the formula: RK = SR + SM + SD. This formula uses the following indicators:

1. Total amount of compensation (RC).
2. Vehicle repair cost (CP).
3. Price of consumable materials (CM).
4. The cost of those parts that are subject to complete replacement with new ones (SD).

Payment is made in cash at the insurance company's cash desk or can be transferred using the details specified by the applicant. Each potential recipient of funds has the right to independently choose the most convenient way for him to receive money.