OSAGO methodology of full vehicle overhaul: new round of discussions
The Bank of Russia has finalised the draft methodology for calculating the cost of repair of a damaged car under the OSAGO contract.
Based on the outcomes of consultations held with insurance market participants, the document clarifies the procedure for determining the price of auto parts fit for use after the complete destruction of a motor vehicle. Among other things, it specifies the list of components that can be categorised as fit parts (for example, operational engines, gear units and others, in case they comply with certain requirements).
The draft document also defines factors reducing the extent of wear of components. These factors include a major engine overhaul or a hull replacement.
The proposed novations will make it possible for experts to assess the damage more accurately in the course of examinations, and for victims to receive equitable insurance indemnification.
As the Bank of Russia reported earlier, the document sets forth a new procedure for generating and approving directories. In particular, it is assumed that directories will be generated for each constituent territory of the Russian Federation and updated every three months.
Another essential novation is the procedure for calculating the size of commodity value lost as a result of the damage and subsequent repair of a motor vehicle.
The proposed approaches are aimed at increasing transparency of the formation of price directories and excluding ambiguous wording that used to cause disputes in the expert and insurance communities.
Please send your suggestions and comments regarding the draft to the Bank of Russia until 13 July 2020.