Drivers to be able to buy short-term CMTPLI policies
A draft law, which provides for all policyholders the opportunity to purchase a policy for a period from one day to three months, was adopted by the State Duma in the second reading. This type of policy will be in demand among drivers who use their cars for a limited period of time. The innovation will add to the protection of conscientious road users involved in traffic accidents.
According to the current law, CMTPLI contracts are concluded for a period of one year. The minimum term of validity of insurance under such contracts shall be at least three months. However, there are two exceptions: when buying a policy to drive the purchased car to the place where it is registered (the insurance period shall not exceed 20 days) or when temporarily using in Russia a car registered in another country.
The draft provides that, similar to e-policies, short-term CMTPLI policies will have the start date of insurance coverage postponed — no earlier than three days after the date of purchasing the policy or as agreed upon with the insurer. This is necessary to prevent fraudulent cases of immediately obtaining a CMTPLI policy after an accident. A discount coefficient will be applied when calculating the cost of a short-term policy. Insurers will determine its value independently.
The law will become effective 210 days after its official publication.