24.08.2020

The law on individualization of third party liability insurance tariffs comes into force

The law on individualization of third party liability insurance tariffs comes into force

The law on individualization of third party liability insurance tariffs will come into force in Russia on Monday. It will allow insurance companies to form the price of the insurance policy taking into account drivers’ personal characteristics: the quality of driving and compliance with traffic rules.

According to the law, a group of factors will affect the calculation of insurance premium: gross violations of traffic rules, car operation rules, and penalties for driving intoxicated will increase the tariff. There will be also the other factors, which will be determined by the insurance companies themselves.

At the same time, any factors discriminating against people, including the ones that are related to nationality, language, race, official position, religion and attitude to religioin would be strictly prohibited to use during calculating the insurance tariff.

The Bank of Russia is responsible for ensuring correctness of insurance rates calculation.

Besides, from August 24, the corridor of basic rates will be extended:  by 10% down and up for the cars of individuals, by 20% for the cars of legal entities, and by 30%for the cabs.

The Central Bank has given an explanation that the expansion of the tariff corridor will allow insurers to reduce tariffs for the safe drivers and increase the tariffs for the risky drivers who violate the traffic rules.

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