New OSAGO: reimbursement to be focused on repairs

The amendments to the legislation which stipulate that repairs should be the priority form of reimbursement under OSAGO have become effective today. The new rules are only applicable to motor cars owned by private individuals.

Car owners will be able to choose a car maintenance shop (CMS) from a list suggested by the insurer where their car will be repaired following a road-traffic accident (RTA). The CMS can be either chosen when signing the OSAGO agreement or when reimbursing the damage incurred.

The list of the insurer’s contractor CMS, their location, makes and manufacture year of vehicles they service and approximate timeframes of repairs will be available on the insurer’s website. Policy holders will be able to have their car repaired at the CMS of their choice upon agreement with the insurer.

Repairs the insurer will be responsible for should be made at a CMS within 50 km from the location of the RTA or the victim’s place of residence. The maximum timeframe for repairs should be 30 days. New vehicles (less than two years old) should be repaired at the official dealers’ CMS.

Unlike monetary pay-outs, the repair of a damaged vehicle will not take into account the wear and tear of its parts and components. A further amendment that may be of note for car owners is a ban on replacing car parts with second-hand spares.

Unless an insurer has made an agreement with CMS that comply with the law, it will continue to reimburse damage in cash .