New Bank of Russia Ordinance on individual OSAGO rates
The Ministry of Justice has registered Bank of Russia Ordinance to enable insurers to assign lower rates to careful drivers and higher rates — to those who drive in a risky manner and violate traffic rules. The Ordinance takes effect on 5 September.
The range of base rates for motor vehicles owned by individuals will expand by 10% in both directions. This will allow to employ a more differentiated approach to rate setting for drivers depending on their risk level.
On 24 August 2020, amendments to the OSAGO law on the customisation of rates came into force. Rates will depend on characteristics of specific drivers. These will include violations of traffic rules and other factors: vehicle age and mileage, drivers’ marital status and children (if any), telematics equipment (if any), etc. The use of all available information will help insurers to differentiate more accurately between drivers with low and high risk levels so that policy prices reflect more precisely actual risk levels.