Assignment of claims under OSAGO: regulator’s explanations
Priority of in-kind compensation over cash payments under compulsory motor third-party liability insurance (OSAGO) applies even if an individual with the right to claim such compensation cannot make their car available for repairs. The regulator clarifies this in its information letter addressed to insurance companies.
The regulator detected cases when such individuals attempted to receive cash payments under OSAGO, which are as a rule a lot higher than the compensation for the assignment of claims that is due to victims of accidents. They explained their rejection of repairs under OSAGO by being unable to have their car delivered to the maintenance station, them being not car owners.
The Bank of Russia reminds insurers that compensation is paid in cash only in a limited number of cases specified by the OSAGO law. These cases do not include the impossibility for an individual with the claim to have their car brought to the maintenance station. The victim should understand that this individual should also be entitled to dispose of the damaged car for the purposes of repairs.
Furthermore, claims for compensation for injury to life or health cannot be transferred under an assignment agreement: the victim must personally contact their insurer for payment, the regulator says in its letter.