Russian President Vladimir Putin signed a law on the individualization of CTP rates depending on a number of criteria. The document was published on the official portal of legal information on Monday, May 25.
Before the law was adopted, the CTP pricing system did not allow insurers to provide discounts to policyholders based on their personal characteristics, compliance with traffic rules, and other factors. It was also impossible to stop the practice of subsidizing some categories of policyholders by others.
The new law provides for the transition to CTP pricing based on market principles and competition.
Insurers were given the right to independently determine the approach to applying the basic rates of insurance rates within their maximum and minimum values, which are regulated by the Bank of Russia. At the same time, they will be able to take into account the personal characteristics of the policyholder and the persons allowed by them to drive the vehicle.
The law maintains a limit on the maximum amount of insurance premiums under a CTP agreement. Now on the websites of insurers will be placed calculators for calculating the insurance premium.
Coefficients of insurance rates are set by the Central Bank depending on a number of criteria. The current situation with the coronavirus is also taken into account.
From March 1 to September 30 of this year, when purchasing a policy without a diagnostic card, the policyholder will be required to submit it later. If they do not do this, the insurer will be able to recover from the car owner the full compensation paid to the victim in the event of an accident.
Injured car owners will have to report to the insurance company the details of an independent technical examination.
The state Duma adopted the law on the reform of the CTP policy in the third reading on May 13.
At the end of April, the Russian Union of motor insurers (RSA) reported that the average price of a CTP policy in the first quarter of this year decreased by 1.1% compared to the same period last year, from 5544 to 5482 rubles.