History of OSAGO in Russia

History of compulsory motor liability insurance in Russia and abroad

The history of automobile insurance begins almost immediately after the invention of cars in the United States. Compared to foreign experience in this area, Russian experience is minimal, and the car insurance system can be called quite young.

When did OSAGO appear in Russia and why was it needed? Has MTPL always been compulsory insurance and why? When was the law on compulsory motor liability insurance adopted? What are the features of car insurance in foreign countries? We will answer these questions in this article.

History of the origins of car insurance

2018 marks the 120th anniversary of the first American auto insurance policy. Travelers Insurance Company, a well-known insurance company in the states, entered into a car insurance contract with Dr. T. Martin. The conditions were simple: for 12 and a quarter dollars, the policyholder was guaranteed a payment of 5 hundred dollars if his car was damaged in a collision with a horse-drawn vehicle. Since almost the entire population of America traveled on horses, and cars were purchased by wealthy citizens, a similar accident in 1898 was very likely.

At that time, victims of horseless carriages had already appeared, and one of the accidents, which ended in death, made it into all the newspapers. In the summer of 1896, a car at a speed of 6 km/h hit and killed a confused woman. The cause of the accident was not the speed of the car, but the limited visibility for the driver due to horse-drawn carriages and the shock of the lady who saw the carriage without a horse for the first time. After a long trial, the judges agreed that there was an accident, but many motorists thought about safety on the road.

The American's insurance was his own idea, as well as the result of simple calculations: in the USA, there were 4 thousand cars for every 20 million horses. The example of a resourceful doctor did not become contagious. It took about 30 years for mass production of cars to be established at Ford factories. In the 20s of the last century, the car ceased to be a rarity and turned from a luxury item into ordinary transport. Massachusetts authorities in 1925 legalized compulsory auto insurance, and compensation was received by the injured party, i.e. insured the motorist's liability to pedestrians and other road users. It was still possible to insure the car, but it was not necessary. The legislative initiative was accepted with enthusiasm by car owners, since cars were still expensive and drivers had little experience.

European countries followed the example of the United States, and by the middle of the last century, almost all Western European countries had laws on compulsory car insurance. Austria introduced civil liability insurance for motorists in 1929, and a year later a similar bill was approved in the UK.

The car became a means of transportation across borders, and there was a need to legalize a universal car license that would be valid throughout Europe. The Green Card has become an insurance policy that has guaranteed payments in any European country for more than 50 years. The policy got its name because of the light green color of the forms that are issued to drivers.

The emergence of car insurance in the Russian Federation

At the end of the 20s of the last century, there were too few cars in Russia for the car insurance initiative to qualify for consideration and approval at the legislative level. Only in the late 60s the number of cars increased so much that the issue of insurance was considered at the level of the Council of Ministers. In 1984, the Resolution “On measures to further develop state insurance and improve the quality of work of insurance authorities” was approved, which became the basis for the creation of “auto-combi”. This is an insurance contract concluded by a citizen on a voluntary basis, and the object of insurance is not only the car, but also passengers and their property.

Auto insurance has already developed further in Russia. In 1991, CASCO was introduced on a voluntary basis, but was not widely used. Since 1993, draft laws on compulsory motor insurance began to be submitted to the State Duma. Employees of the Russian Insurance Supervision and the Department of Transport were preparing a draft of the relevant legislative act. The period of consideration, study and modification of the law on motor vehicle citizenship was long; the act came into force only in the summer of 2003, and implementation was carried out in several stages.

Implementation of the Law on Compulsory Motor Liability Insurance

In 2000, State Duma deputies for the first time heard a bill that regulated the introduction of compulsory civil liability insurance in Russia. A fundamentally new factor was that the insurance contract protected not the policyholder himself, but the victim. When considering the bill, deputies were guided by statistics according to which many motorists were confident that they would never cause an accident. This has made car owners unwilling to voluntarily insure the risks of pedestrians and other road users. The future law provided for the conclusion of a compulsory motor liability insurance agreement for each vehicle owner.

One of the main problems in approving the law was tariffs. A lengthy justification and coordination of the issue led to the fact that the law “On compulsory civil liability insurance of vehicle owners” No. 40 was approved by the State Duma and endorsed by the President only on April 25, 2002. The catalyst for adoption was:

requirements for potential member states that want to become members of the World Trade Organization. One of the conditions for membership is the presence of a compulsory car insurance system;
the experience of European countries where car insurance has proven its effectiveness as a system of financial compensation for losses;
growth of the insurance market in the 90s.

The entry into force of the motor vehicle law was delayed for 15 months so that car owners could get used to the new realities of insurance. At the same time, already in 2003, insurers felt an influx of clients, since many drivers with voluntary insurance policies went to their insurance company for a mandatory motor vehicle license.

In 2005, the Law on Compulsory Motor Liability Insurance was discussed in the Constitutional Court. The CC meeting was initiated by deputies of the State Duma, the Kurultai of the Altai Republic, and the Regional Duma of the Volgograd Region. People's representatives pointed to the illegality of compulsory car insurance, the high cost of the policy, which pensioners cannot afford, as well as the amount of insurance payments that does not cover the loss. A Rostov resident also joined the deputies, who considered it illegal to require several cars to be insured if they are owned by the same owner. The judges rejected the claims and confirmed the legality of car insurance and the right of the state to set tariffs, but ordered a minor amendment to be made to one of the articles. Insurance companies, which spent significant sums on advertising, training of specialists and insurance policies, were satisfied with the court's decision.

The problems that the auto citizen solves include:

guaranteeing compensation for losses to the party injured in an accident;
insurance of the car owner against substantial amounts of compensation that he is not able to pay on his own;
motivation to follow traffic rules.

Since 2015, it is possible to draw up a contract online, and a printed copy of the policy is valid when checked by traffic police officers. To date, the legislative act has been supplemented and changed more than 25 times, and the 2017 amendments are not final.

V.A. Tarachev, who presented the Law on Compulsory Motor Liability Insurance to the State Duma in 2000 and served as deputy head of the Committee on Credit Institutions and Financial Markets, considers amendments to the law a natural process in the development of auto insurance in Russia. The practical implementation of legislative norms is complicated, according to the deputy, by the lack of standards for assessing losses after an accident. This allows insurers to underestimate the amount of compensation. You also need a database with information about all insurance cases. Without it, any driver can avoid the application of an increasing coefficient by applying for a policy with a new insurance company. As for the tariffs, the developer of the law claims that they are not inflated, since insurance companies spend more than 80% of the collected amounts on paying compensation.

OSAGO in Europe

European insurers are focused on profit from the placement of financial resources received from policyholders. Interest on deposits is the net profit of insurance companies. About 90% of contributions from clients go towards compensation for insurance cases, and the payment limits in Europe are much higher than in the Russian Federation, and for some items the amount of compensation is not limited. Since 2002, in European countries the state has ceased to regulate the size of tariffs; this function is performed by insurers. European motor insurance, which was initially focused on vehicles (this practice is relevant for the Russian Federation), today is based on personalized insurance, when the cost of the policy is determined by the data of the car owner.

The German insurance market leads among European countries in terms of premium collection. Mandatory liability insurance was legalized here in 1939. Today, the policy is not cheap for Germans: the owner of a middle-class car, who has operated the car for 3 years without accidents or road traffic violations, must pay from 1.2 thousand to 1.5 thousand. euros annually. The insurance company has the right to withdraw money from the client’s account without his consent if the policy is expired and re-issuance is required. As compensation for material damage, the insurer will pay a maximum of 511 thousand euros, and in case of damage to health - up to 2.5 million euros to each victim. After an accident, police officers arrive only if there are injured passengers or drivers. Issues of material damage are the responsibility of insurance companies.

England ranks second in terms of the amount of annual insurance fees; car insurance has become mandatory since 1930. A metropolitan English taxi driver has to pay 2 thousand pounds to cover annual insurance, but it includes 2 policies - OSAGO and CASCO. The insurance company will compensate for material damage up to a maximum of 250 thousand pounds, and for damage to health there is no limit: the amount can be any, up to several million. It is prohibited to drive on the road without a policy, and the document must indicate all accidents in which the driver has been involved.

In Italy, up to a thousand euros will be required for a compulsory car insurance policy; the final cost depends on a number of factors that concern the car owner. Insurance payments for health damage are not limited, and the insurer will cover material losses if the amount of compensation does not exceed 775 thousand euros. Car depreciation is not taken into account when calculating the amount of payments.

In France, a driver involved in an accident is required to correctly draw up an accident diagram and send a proper notification to the insurance company. If there are no victims, then there is no need to wait and call the police. The insurance premium ranges from 700 to 1000 euros, and the maximum compensation for loss will be 460 thousand euros. Payments for health damage are not limited; the victim, having become disabled due to an accident, can count on a lifetime pension from the insurance company.

Since 2008, Spain has legalized checking policies while driving, and fines for an expired document or its absence are comparable to the full annual cost of insurance. For example, a motorcyclist will be fined 1.25 thousand euros, and a truck driver will pay 2.6 thousand euros.

In Europe, car owners have long applied for a policy online and received the original documents by mail.

Conclusion

Civil liability insurance for car owners in the Russian Federation is at the stage of formation. The tariff system, the amount of insurance payments, and the legislative regulation of damage assessment require improvement. Following the practice of European countries, car insurance in Russia focuses on a personalized approach to each driver.

History and background for the introduction of compulsory motor liability insurance in Russia

Every year, the roads of our country are replenished with new cars and drivers who are just beginning their experience. They deeply study traffic rules, pass exams for permission to drive a vehicle, but not every future car owner is able to answer from what year compulsory motor liability insurance was introduced in Russia. But the history of the emergence of compulsory insurance is very interesting.

Development of the law

OSAGO first appeared in the USA at the beginning of the 20th century, and a few years after its adoption the law spread throughout almost all of Europe. In our country, this insurance system began to operate only in 2003, and the development of the law took about 10 years. The Federal Law “On Compulsory Motor Liability Insurance” itself was adopted in 2002, but due to serious disagreements over tariffs, its entry into force was postponed for some time. In fact, discussions began on the possibility of introducing compulsory motor liability insurance back in the 60s, but for some reasons the introduction of such a project was postponed.

From the moment vehicle insurance became mandatory, the accumulation of a special bonus-malus discount began. KBM has become one of the advantages of this system, since with careful driving the policyholder will be able to save up to 50% of the policy price.

In 2003, this type of insurance became completely mandatory, but many car owners still believe that it was “forced” on drivers in order to be able to “collect money” from citizens in this way. The Federal Law “On Compulsory Motor Liability Insurance” was even considered for legality. Opponents of such a law gave the following arguments in favor of its repeal:

The act restricts the basic principles of civil law, namely freedom of contract and property. The fact is that the MTPL insurance contract is mandatory both for any car user and for insurance companies, since it is also public.
The need to annually renew the policy and, accordingly, pay a fee is more like taxes.
Neither the introduced basic tariff nor the set of additional coefficients used to calculate the final amount are payments that are commensurate with the financial level of Russian citizens. Since the national minimum wage is taken into account, it is difficult to argue with this argument.

Despite disagreements even among judges in the Constitutional Court, the Federal Law was still recognized as not contradicting the main body of laws of the Russian Federation.

Previously, the body controlling MTPL tariffs was the Government of the Russian Federation, but since 2013 the Central Bank of the Russian Federation has been involved in this. He also became a supervisory authority.

Prerequisites and goals for the introduction of compulsory motor liability insurance

At the moment, those who, as a rule, are in favor of the abolition of this Federal Law are those car owners who are not fully faced with the tense social situation on the roads that prevailed before the law was put into effect. At that time, the driver paid for the dented side of someone else’s car out of his own pocket. Considering the peculiarities of those times, it becomes clear that many not only overpaid for minor damage to expensive cars, but were also forced to part with their property in order to pay off some car owners. There were often situations when a road accident ended completely criminally and tragically for one of the parties to the incident.

Motor insurance is valid for a year, 6 or 3 months: the policyholder has the right to choose any policy duration and insure the car only for certain months of the year.

When the law on compulsory civil liability was adopted, it pursued several goals:

prevent the occurrence of criminal situations on the road;
improve overall traffic safety and motivate drivers to better comply with traffic rules;
establish guaranteed financial protection for everyone involved in road traffic.

Despite the fact that the Federal Law was perceived negatively in society, the results of the law can be assessed positively. At the moment, there are practically no cases of fraud on the roads, and the state has really managed to encourage drivers to monitor their driving style. The latter became possible thanks to the introduction of the CBM. If we take into account the situation that prevailed in road traffic in the late 90s, it is possible that if the Federal Law “On Compulsory Motor Liability Insurance” is suddenly repealed, lawlessness, fraud and cases of murder for damaging cars will reappear.

In addition, the current MTPL insurance can protect the driver’s liability to third parties, so none of the vehicle owners can do without its annual registration. Considering the financial situation in the country, few would be able to compensate for the damage caused to the other side in an accident. Therefore, we can only expect the introduction of new amendments that will improve the existing legislation in the field of motor insurance, since there are no plans to abolish it in the foreseeable future.

In what year was OSAGO introduced in Russia?

In this article we will look at the year in which compulsory motor insurance was introduced, as well as the history of the emergence of compulsory motor insurance and the path of its development in Russia and the world.

The history of compulsory insurance

2018 marked 120 years since the first car insurance policy was issued. The document was issued by Travelers Insurance Company. The insured was Dr. Martin Truman. He purchased a policy to protect his car from collisions with horse-drawn carriages.

According to the terms of the agreement, Martin paid a fee of $12. If an insured event occurred, the company had to compensate him for losses in the amount of $500. The purchase of the policy was Truman's own initiative, since the risk of a collision with a horse-drawn carriage was extremely high. In America at that time there were only 4,000 cars for 20 million horses.

The doctor was prompted to conclude an insurance contract by an incident in 1896, which was covered by all media. The driver of a car moving at a speed of 6 km/h hit a woman. The victim died. The cause of the accident was not the speed of the car, but the limited visibility due to the carts.

The judge ruled the incident an accident, but many car owners began to think about safety. The idea of an enterprising American did not find widespread support. The lack of interest of citizens in car insurance was explained by the small number of vehicles on the roads.

In the 20s of the twentieth century, the Ford company launched mass production of cars; they turned from a luxury item into a common means of transportation. In 1925, Massachusetts made auto insurance mandatory. Such a policy guaranteed compensation for damage to the injured party. That is, the object of insurance was the driver’s civil liability. Those who wished could take out a policy for their car. But this type of service was voluntary.

Following the example of the United States, almost all European countries began to introduce a compulsory car insurance system. By the middle of the last century, most states already had a prototype of the current MTPL. Around the same time, an insurance system appeared that operated in all European countries.

The emergence of compulsory motor liability insurance in Russia

Discussions about the introduction of compulsory car insurance in Russia began in 1924. But due to the small number of cars on the roads, the issue was considered irrelevant by the country's leadership. In the second half of the twentieth century, the number of cars in the USSR increased so much that the authorities again raised the topic of introducing a policy system.

In 1984, the Council of Ministers adopted a legislative act “On measures to further develop state insurance and improve the quality of work of insurance authorities,” which gave impetus to the development of domestic auto insurance. The contract was concluded at the initiative of the client and provided for the protection of cars, passengers and their property.

In 1991, the first CASCO policies began to appear, but they were not widely used. The idea of introducing mandatory compulsory motor vehicle liability insurance arose only after the collapse of the USSR. The first draft of the relevant law was submitted to the State Duma for consideration in 1993. The document required serious edits and improvements.

Development of a modern law “On compulsory motor liability insurance”

The development of No. 40-FZ “On OSAGO” took almost 10 years. After the first version of this document was presented and rejected in 1993, the adjustment took 7 years. In 2000, the law on compulsory motor insurance was again introduced for consideration. It was adopted in the first reading, but serious improvements were still required.

The main innovation was the insurance object. Previously, in Russia, with the help of a policy, car owners protected only their cars and passengers. Now it has been decided to insure the liability of drivers to other road users. In the event of an accident, the losses of the injured party are compensated by the company that entered into an agreement with the culprit of the incident.

One of the main problems of the bill approved in 2000 was the tariffs for compulsory motor liability insurance. Due to the lengthy coordination and justification of prices for the “auto citizen”, the final version No. 40-FZ was adopted only on April 24, 2002. In order for drivers to gradually get used to the new insurance requirements, it was decided to postpone the entry into force of the document for 15 months. Thus, the date when compulsory motor liability insurance was introduced in the Russian Federation is considered to be July 1, 2003.

The introduction of compulsory insurance has caused discontent among motorists. Many of them pointed out the illegality of such an “imposed” service. In 2005, No. 40-FZ was even considered in the Constitutional Court, which recognized compulsory car insurance as acceptable.

Introduction of electronic insurance

In 2015, the Russian Government adopted amendments to No. 40-FZ, allowing drivers to obtain insurance via the Internet without visiting the office. Not all companies introduced such a function and continued to sell policies only during a personal visit of the car owner.

The latest amendments to No. 40-FZ in 2017 and the approval of new instructions from the Central Bank regarding the procedure for issuing e-OSAGO and the operation of insurers’ websites obligated insurance companies to provide the opportunity to purchase a document online.

The emergence of compulsory car insurance occurred more than 100 years ago. Despite its centuries-old history, MTPL in Russia is a relatively young and new product.

When was compulsory motor third party liability insurance introduced and how to find out your insurance history on a motor vehicle license

2003 is the year when compulsory motor liability insurance was introduced in Russia. This is compulsory insurance, which, according to legal requirements, must be taken out for every car owner using their vehicle in Russia. OSAGO is used to insure the driver's liability - the car is not insured (CASCO is used for this). According to the issued policy, if the policyholder is found guilty of an accident, the insurer will make payments to the victims.

History of the emergence and development of auto insurance in the Russian Federation

Discussions on compulsory car insurance took place back in the days of the Soviet Union (in the 60s). According to the stories of contemporaries, the idea was quickly abandoned due to the difficulty of implementation and the relatively small number of vehicles on the roads in certain regions. The financial burden that would fall on the shoulders of drivers also played an important role.

History of car insurance development:

In Russia, the corresponding law began to be worked out in 93-94. In those years, several bills were presented at once, among which one was chosen.
The final stage of creating legislation on compulsory motor insurance was implemented in 2000-2002.
The bill was adopted in the first reading in the Russian State Duma in 2000, and in the third reading in 2002.
Officially, the law came into force on July 1, 2003.

Interesting! Since 2015, car owners from Russia have been given the opportunity to register for E-MTPL via the Internet. All auto insurance companies should provide similar functionality.

In what year was OSAGO introduced?

In 2003, legislators introduced compulsory motor liability insurance in Russia and car insurance became mandatory. The Federal Law “On Compulsory Civil Liability Insurance” has appeared, which forces car owners in Russia to purchase MTPL insurance annually. As of 2019, the law is successfully operating, although Russian car owners have accumulated many questions and negative reviews regarding the policy pursued by insurance organizations.

Important! After an accident, payments from the insurer are made to the accounts of the victims. The insured who is found guilty of an accident does not receive any compensation from the insurance company - he restores the car at his own expense.

The main goal of introducing compulsory motor liability insurance is to provide persons injured in car accidents with guaranteed payments aimed at compensating for damage to health and property. This type of compensation is financed by insurance premiums from car owners, who are required to purchase a new auto insurance policy every year.

Government bodies do not take any part in financing such events and activities, and insurers cling to the slightest opportunity to refuse payments. Therefore, the appearance of many dissatisfied with the current state of the auto insurance industry in Russia is a normal and quite logical phenomenon.

Features of compulsory insurance

Car owners are required to take out auto insurance every year, regardless of current insurance history. The introduced law obligated motorists to pay an annual fee to car insurers, so most drivers from Russia do not support it (especially those who do not have experience in getting into an accident and drive carefully).

The advantages of MTPL policies include:

If an insured event occurs, the insurer will pay all compensation that is due to the victims (500 rubles maximum). The introduction of the law does not allow car owners to refuse insurance, but it guarantees the preservation of funds after a car accident in which they are found guilty.
The injured party is guaranteed to receive compensation from the insurance company. Victims of an accident do not need to file lawsuits or wait for payments from the culprit. Financial issues are resolved by the insurer. As history and practice show, all payments are made within a month.
Thanks to the introduction of compulsory car insurance, the level of safety on the roads has increased.

What is a car insurance history?

The insurance history is presented in the form of a special KBM coefficient, which is used to calculate the cost of services when taking out MTPL auto insurance. The coefficient includes the history of the “behavior” of a particular car owner on the road. A driver's insurance history is necessary so that the insurer can accurately determine how many times a motorist has been involved in a car accident in the past.

Information about drivers' current auto insurance histories is stored in the RSA database. Insurance organizations will recognize it before issuing the next policy.

How can I find out my MTPL insurance history?

The story is in no way tied to a specific vehicle. The client's development history is associated only with him - it is not affected in any way by the number of registered and insured vehicles. If a person becomes guilty of a car accident, then this is necessarily reflected in his history, which subsequently affects the increase in the cost of the compulsory motor liability insurance policy.

Before you find out information about your insurance history, you need to consult with an employee of the insurance organization - every specialized company has access to the RCA database.

The Insurance History Bureau has been operating in Russia since 2015. The organization has its own centralized database, which consists of detailed information about each client who took out a compulsory motor liability insurance policy with insurance organizations.

Positive aspects of the History Bureau:

reduction in prices for insurance services for car owners who have never been involved in car accidents;
assistance to insurers in identifying fraudsters and unscrupulous clients.

Important! In addition to compulsory motor liability insurance, the history bureau contains client information on DSAGO, CASCO, vehicle accidents under formalized agreements, settled disputes, lawsuits in courts, etc.

The powers and completeness of information, which is provided upon request to insurance organizations by the Bureau of History, is determined by the Resolutions of the Central Bank of Russia.

Will OSAGO be abolished in Russia and when might this happen?

The issue of abolishing compulsory motor liability insurance in Russia has been featured in the media and among ordinary motorists since the year of the introduction of compulsory car insurance.

The main disadvantages that a compulsory MTPL policy in Russia has today include:

Insurers impose a huge number of additional services on clients when taking out a compulsory motor liability insurance policy, and if they refuse for various far-fetched reasons, they refuse to conclude an agreement for the amount established by law;
damage based on the results of the examination is compensated only taking into account the wear and tear of the vehicle, its main components and assemblies;
the discount for insurance in the presence of a good KBM coefficient is significantly and deliberately underestimated;
the presence of huge problems with the registration of E-OSAGO via the Internet (complex captcha, constant page reloads, setting impossible requirements, etc.);
violation of the deadlines for payment of due compensation.

In Russia, purchasing an MTPL policy for a car is very problematic - insurers are “running out of blank forms”, “servers are overloaded” and something else is happening. All this leads to the fact that many motorists began to refuse to take out car insurance in Russia - it’s easier to pay a fine of 500-800 rubles. several times a year, rather than taking out a policy.

Compulsory liability insurance for car owners is normal practice for most developed countries. There are no questions about repealing such legislation. Therefore, you should not wait for the abolition of compulsory motor liability insurance in Russia. You can find in the news that from year to year some deputies speak in the State Duma with proposals to abolish compulsory car insurance, but their words do not receive proper development. Cancellation of a federal law is possible only by the Supreme or Constitutional Courts. If you look at things realistically, you can note that this is unlikely to happen in the near future.

Car owners have the opportunity to find out and check their insurance history. To do this, you need to go to the History Bureau website, download and print the form, and fill it out. Before checking the information from the BSI, you must have the completed form certified by your insurer. Then scan and send to the History Bureau.

Video files

When was compulsory motor liability insurance introduced in Russia and are they planning to cancel it? Duration of the policy, its renewal

Most regulatory documents today have expiration dates, although there are exceptions. Moreover, it is a mandatory document that appears in all road accidents. It is he who can reduce the driver’s expenses for restoring the consequences of an accident, or, on the contrary, entail a fine if there is no policy or it is expired. Since what year was the “motor citizen” introduced and in effect in our country? What to do when the policy expires, how to properly reissue it and what liability is provided for an expired MTPL policy - all this is discussed further in the article!

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What type of insurance is this?

The most important thing to remember about the MTPL policy is that it compensates for losses and damage that you, and not another entity, caused to a third party - the vehicle, the life and health of the passengers who were in it.

By insuring your civil liability, in the event of an accident, you save yourself from compensation for damage. The losses that the subject suffered as a result of your actions will have to be compensated by the insurance company.

As for you, your car, property, life and health, OSAGO does not cover these factors. You will have to compensate for the damage that was caused to you personally from your savings . If you want to protect your vehicle from damage and theft, then you need to pay attention to the CASCO policy.

Every driver must buy an MTPL policy or at least be enrolled in it. This law applies even when you simply drive your car from the car dealership to your place of residence or registration (the exception is cases when the MTPL policy provides for an unlimited number of persons who have the right to drive the car).

When driving a car, you should always carry the original policy with you , as well as the license and ownership documents for the car. If the policy is available, but you, for example, forgot it at home, the inspector has the right to send the car to a fine parking lot. You can return it from there only with the help of a policy.

In what year did it appear and become mandatory in the Russian Federation?

The history of OSAGO insurance dates back to the end of the 20th century, when it received the status of compulsory. In the 1920s, there were too few cars in Russia for a car insurance initiative to be considered and approved at the state level. Only in the late 60s the number of cars increased so much that the issue of insurance was discussed at the level of the Council of Ministers.

This is an insurance contract drawn up by a citizen on a voluntary basis, and the object of insurance is not only the car, but also passengers and their belongings .

Further development of car insurance took place in Russia. In what year did the introduction of compulsory motor liability insurance policies begin and when were they actually introduced, that is, “automobile insurance” became mandatory?

In 1991, CASCO was introduced on a voluntary basis, but it was not widely used. Since 1993, draft laws on compulsory auto insurance began to be sent to the State Duma .

Employees of the Russian Insurance Supervision and the Department of Transport were preparing a draft of the corresponding legislative act. The period of consideration, study and integration of the law was quite long; the act came into force only in the summer of 2003, when compulsory car insurance was introduced, and implementation was carried out in several stages.

When will the “motor citizenship” be abolished?

In turn, the Ministry of Finance chose a strategy for the development of the insurance sector in the country. Alexey Moiseev, director of the organization, talks about replacing the classic OSAGO with other types of insurance.

The bill on introducing a tariff corridor is still under consideration , so nothing concrete can be said. The Russian Auto Insurance Union has not yet commented on this situation.

Expert forecast

From the point of view of the situation in Russia and in the world, we can say that the law will be adopted with a 90% probability. Now the main trend is human freedom, which means that bills will be adjusted to this canon so as not to create a tense situation in the country.

If you track the dynamics of changes to legislation over the past few years, you can notice an interesting trend.

All “mandatory” documents receive the status of “voluntary” (issued at will), however, penalties for violation increase several times. This is a kind of “tax on breaking the law”, which will help to avoid relapse on the part of citizens.

When will they be promoted?

An excerpt from the traffic regulations on fines for driving without insurance in 2018 - according to paragraph 2.1 of the Traffic Rules, every driver driving a car must keep the following documentation with him:

driver's license of the appropriate category;
registration documents for the car;
OSAGO insurance policy.

Penalties may be assessed for each item separately, or in the form of an additional fine if all conditions are not met. Currently the penalties are :

driving without a license – 500 rubles (if you don’t have a license at all – from 5,000 to 15,000 rubles);
lack of documents for the car – from 5,000 rubles;
Driving without an MTPL policy or with an expired policy – 800 rubles.

The fine for driving a motor vehicle without insurance in 2018 in your own car is exactly the same as in someone else’s!

These sanctions are applied in case of repeated violation of the law or if the emergency situation entailed serious consequences, such as death, causing moderate or severe harm to the health of the subject, damage to monuments or other objects of historical importance, and in some other cases. The bill was approved in the first reading, and the second is scheduled for June 2018 .

How long can you make a policy for?

It is worth noting right away that it is more profitable to purchase a compulsory insurance policy for the whole year at once. Taking out insurance for a couple of months is more expensive. The price of annual car insurance corresponds to the figures specified in the policy and does not change throughout the year, even if the price of insurance increases.

When taking out a policy for a short period, be sure to check the cost of annual MTPL insurance and its start time, that is, when the policy comes into force (we talked about how to make a MTPL policy for 1, 3 or 6 months in this article).

Thus, when submitting an application, you can calculate the entire insurance year in advance (two months in winter, one in summer, three in autumn, etc.). When paying, only the total number of months in a calendar year is taken into account .

What to do after the deadline?

Many documents have a validity period, after which the securities lose their legal force, and OSAGO is no exception: the “automobile insurance policy” also has a validity period (how do you know if the OSAGO policy is valid?). And legal sanctions are also provided for this case.

Failure by the driver of a vehicle to fulfill the obligation established by federal law to insure his civil liability, namely driving a vehicle, if such compulsory insurance is obviously absent, will entail the imposition of an administrative sanction in the amount of 800 rubles. (as amended by Federal Laws dated June 22, 2007 N 116-FZ, dated July 23, 2013 N 196-FZ). Extenuating circumstances (force majeure, technical problems with the car, disability) may be the reason for appealing the fine. We talked in detail about whether it is possible to drive a car after the expiration of the compulsory motor liability insurance policy and what the consequences will be here.

You need to contact the insurance company to renew the insurance contract or apply for a new one (read about how to renew your policy online here; in this article we talked about how many days before the end of the insurance you can apply for a new one). Some companies offer clients who have taken out a policy with them discounts on a new one, in other words, they are willing to meet, because they are interested in profit from clients, and clients are interested in receiving favorable insurance conditions.

Despite the fact that the document has been mandatory for more than 50 years, the world is moving to a new stage of development, where there will be no place for obligations, but only supply and demand, which will regulate the situation in the insurance market.

Moreover, the legislation of the Russian Federation is already undergoing fundamental changes, so you need to remember that the execution of the document is mandatory now, but who knows what will happen tomorrow. While the law is in force, it must be observed, which means :

Apply for compulsory motor liability insurance on time to avoid unnecessary expenses in the event of an accident.
Keep all necessary documents with you in case of an accident.
Do not use an expired policy.
Only challenge fines when you think you are 100% right.

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