CMTPLI: new rates for certain vehicles and regions
From 27 January 2025, the compulsory motor third-party liability insurance (CMTPLI) rate corridor is to be expanded both upwards and downwards by 11.57% for public transport (trolleybuses, trams, and buses) and by 20% for motorcycles and trucks with the permissible maximum weight of up to 16 tonnes. The base CMTPLI rates for personal cars will not change.
The changes have been approved by the Bank of Russia ordinance. The rate corridor has been expanded, as the CMTPLI of these types of vehicles is highly unprofitable. For instance, small truck drivers cause road accidents with the maximum damage of ₽400,000 more often than other road users. As for motorcyclists, the amount of damage from accidents caused by them has increased by 32% in the recent years. The regulator has modified their insurance premium coefficients based on age and experience and introduced a new coefficient, which depends on a vehicle’s engine capacity.
Moreover, the ordinance obliges insurers to calculate the amount of CMTPLI policies for foreign nationals based on the driving record indicated in their national driving licences.
The Bank of Russia has also updated local coefficients (LCs), which affect insurance policy prices, for a number of regions. The regulator has reduced LCs for 21 regions where almost six million conventional policies (excluding short-term contracts) were issued in 2024 whose average amount was 17.1% higher than the nationwide figure. However, the policymaker has raised LCs for 18 regions where the effective LCs do not cover higher losses. In these regions, the number of conventional CMTPLI policies issued in 2024 slightly exceeded 4.4 million with the average contract amount being 31.8% below the Russian average value.
There has been an increase in the coefficient for CMTPLI multi-driver insurance policies for individuals. These are insurance contracts with no limit on the number of people allowed to drive the car insured. Multi-driver insurance policies account for less than 2% of the total number of CMTPLI policies issued to individuals.
According to preliminary data, the number of issued conventional CMTPLI policies rose by 5.5% year-on-year to 43.7 million in 2024. Their average contract amount declined by 2.5% to ₽7,600.