Bank of Russia proposes amendments to the bill on priority of OSAGO repair
On 14th December the State Duma adopted in the first reading a bill on the priority of in-kind indemnities over money benefits in OSAGO insurance and emphasised that the bill should be revised by the second reading.
‘Duma members have actually approved car repair as a main type of OSAGO indemnity,’ Deputy Governor of the Bank of Russia Vladimir Chistyukhin says on the matter. ‘The Bank of Russia proposes to include in the bill provisions on enhancing protection of rights of traffic accidents victims by the second reading.’
The Bank of Russia believes the repair should become the main indemnity only for light vehicles owned by individuals. When entering into the OSAGO contract, the owner should be able to choose the repair shops from the list provided by the insurer to be used in case of traffic accident.
The bill should lay out the Bank of Russia rights to set the requirements on the repairs procedure and quality control for the services provided. In case of repeated violations of the requirements, the Bank of Russia should be able to prohibit the insurer from paying in-kind OSAGO indemnities. However, even then the owner of the vehicle should be able to take advantage of this option.
The Bank of Russia proposes that when the in-kind indemnities become predominant, the monetary indemnities should be possible if the victim of traffic accident is in hardships. To receive the payment, the victim should apply to the Russian Association of Motor Insurers committee.
‘The Bank of Russia proposals were widely discussed among representative of the State Duma, various ministries, agencies and expert communities. We are ready for the constructive dialogue to adopt the bill as soon as possible, because we believe that making in-kind indemnities more common will significantly improve the situation in the OSAGO market,’ said Mr Chistyukhin.