Car insurers offer the option of payment in kind

26 September 2018

PCA will send to the Bank proposals on the natural indemnity insurance

The Russian Union of motor insurers (RAMI) plans before the end of the year to send to the Bank of Russia proposals for the modernization of the system of damages for CTP in kind. This was at a business forum "the Challenges of the year 2018," said the Deputy Executive Director of RSA Sergey Efremov. In addition, it was discussed and press conference the President of RSA Igor Jurgens and Executive Director, RAMI Eugene Ufimtseva September 25, according to the results of the parliamentary hearings in MMPTS MIA "Russia today".

Suggestions SAR will relate, in particular, the period of fixation, the distance to the stations, as well as use in the repair of used spare parts of good quality.
Sergey Efremov said: "There are cars that are already out of production and spare parts also not available. New spare parts for them to find. This approach is very common and has established itself in hull. Why not do the same in CTP by agreement with the owner? In this repair using used parts will also be given a guarantee".
Amendments to the law about OSAGO, providing for the priority of compensation in kind over the compensation money came into force in April 2017. High efficiency natural damages for CTP in terms of fraud prevention and reducing loss of this type of insurance was noted, in particular, the participants of the parliamentary hearings on the obligatory "avtograzhdanki", which took place on September 13, 2018.
At the hearings the Deputy Chairman of the Central Bank Vladimir Chistyukhin said that in the last few years has adopted a number of important measures to stabilize the market. Of particular importance is the introduction of e-insurance (53% of the market sales of insurance policies), and priority natural compensation. However, he believes that the problem persists and we need to take several other actions in order to protect car owners.

In 2017 the negative financial result in the CTP segment amounted to ₽15 billion that has forced several companies to leave the market or reduce the share. Earlier when the first symptoms of rising losses, this market has left the world giant Alliance, surrendered the license to the insurance company VTB Insurance, savings and Insurance still refrains from entering into this segment. It is expected that further development of the compensation in kind will reduce the loss, increase the attractiveness of this market for insurers and increase the availability of insurance policies.