New tariffs for carrier liability insurance set

The Bank of Russia Board of Directors has approved an ordinance stipulating new maximum tariffs for compulsory carrier third party liability insurance (OSGOP). The tariffs are dependent on the mode of transport and traffic, and also risk-prone factors.

The regulator monitors OSGOP tariffs on a daily basis. Certain statistics characterising the accident rate and other tariff factors have been accumulated since the introduction of this type of insurance.

The analysis of data showed that the insurance tariffs were overstated for certain modes of transport and understated for other modes. The Bank of Russia decided to review the OSGOP tariffs based on the analysis done.

Therefore, the tariffs for city bus traffic will decrease by a factor of 1.44 as compared with the applicable tariffs and the tariffs for suburban bus traffic will be halved. These modes of transport make up for a larger part of traffic subject to insurance. In addition, the tariffs for inland water traffic for tourists will decline by a factor of 1.6.

The tariffs for other modes of transport and traffic will increase, but no more than 2 times.

The Bank of Russia does not forecast any serious growth in the cost of carrier services as a result of changes in the insurance tariffs, since the share of this type of insurance in the structure of carrier expenditures is insignificant (up to 1.81%).

The ordinance must be registered with the Ministry of Justice and becomes effective following the invalidation of Resolution of the Russian Federation Government No. 1344, dated 20 December 2012, which introduced the applicable tariffs.