OSAGO law: innovations in European Accident Statement and other important amendments
On 16 April 2019, Russia’s State Duma adopted in the second reading amendments to the law that makes access to OSAGO simpler and enhance the quality of loss settlement.
The bill allows car owners to draw up a European Accident Statement without the need for special software – a mobile app or a control device – in order to make claims for payouts of up to 100 thousand rubles.
Starting from 1 October 2019, the maximum payout under a European Accident Statement will total 400 thousand rubles throughout Russia if the parties involved in an accident agree on the accident details and provided that accident conditions have been registered using a control device or a mobile app. Currently, use of an unlimited European Accident Statement is only in practice in Moscow, St. Petersburg, and the Moscow and Leningrad regions.
In accordance with the bill, insurers will not be able to recoup issued payouts from drivers responsible for the accident who have submitted a European Accident Statement but failed to inform their insurer about the accident within 5 days stipulated by law. Drivers responsible for the accident still have to submit an accident notice to the insurer if it was issued in hard copy.
Furthermore, subrogation claims will not be filed against pedestrians if they are injured, or, if they die in an accident, against their relatives or successors.
The document establishes that a soft copy of the European Accident Statement may be submitted via the Public Services Portal. The effective date of the new regulation coincides with the launch of a trial accident registration procedure with the use of OSAGO Aid, a mobile app.
‘The electronic accident settlement will make accident registration and data submission to insurers faster and more convenient, and will reduce the time needed to register and settle an insured event’, said Philipp Gabuniya, Director of the Insurance Market Department.
The bill requires that insurers provide for OSAGO policy issue in any branch selling motor own damage and voluntary motor third party liability insurance in order to enhance the accessibility of OSAGO.
The bill requires that insurers submit not only contract-related information, but also actual loss data to the automated OSAGO information system. These data are used to calculate the bonus-malus coefficient (no claim bonus). This requirement was previously established by the Russian Association of Motor Insurers (RAMI).
Furthermore, the bill updates the rules for the RAMI regarding the issue of compensation payouts and clarifies the supervisory powers of customs authorities as regards state border crossing by car. At the demand of a customs officer, vehicle owners will have to produce a green card or an OSAGO policy.
The document stipulates that drivers are not obliged to have an e-policy printout.