To correct ‘bonus-malus’ coefficient on OSAGO will become easier

The Bank of Russia informs car owners on simplifying the procedure for correcting in the compulsory motor third party liability insurance (hereinafter, OSAGO) policy the ‘bonus-malus’ coefficient (BMC), which takes into account surcharges and discounts for accident-free driving and affects the final insurance cost.

If a car owner does not agree with BMC value applied for insurance premium calculation, he/she should appeal directly to his/her insurance company or to the company he/she plans to conclude an OSAGO contract, to make the respective changes to the automated compulsory insurance system (AIS OSAGO).

If the insurance company is unable to rectify the incorrect BMC value promptly, the Russian Union of Car Insurers will hold an inspection upon the insurance company’s request within five business days. Based on the inspection results, the insurance company must introduce a correct BMC value in AIS OSAGO and take it into account when concluding an OSAGO contract.

It should be noted that in 2015 Q3 the Bank of Russia Service for Protection of Financial Services Consumers and Minority Shareholders registered a sharp growth in the number of complaints about applying incorrect BMC value by insurance companies when calculating the insurance premium on OSAGO (twofold as compared with 2015 Q2). The growth in the number of complaints fell on September and amounted to 30% as compared with August.