Agreement on direct compensation for losses under compulsory motor liability insurance

Directive of the Bank of Russia dated September 19, 2014 N 3385-U “On the requirements for an agreement on direct compensation of losses and the procedure for settlements between its participants”

Directive of the Bank of Russia dated September 19, 2014 N 3385-U
“On the requirements for an agreement on direct compensation of losses and the procedure for settlements between its participants”

See Explanatory Note to this Directive

Based on the Federal Law of April 25, 2002 N 40-FZ “On compulsory insurance of civil liability of vehicle owners” (Collection of Legislation of the Russian Federation, 2002, N 18, Art. 1720; 2003, N 26, Art. 2566; 2005, N 1, Art. 25; N 30, Art. 3114; 2006, N 48, Art. 4942; 2007, N 1, Art. 29; N 49, Art. 6067; 2008, N 30, Art. 3616; N 52, Art. 6236; 2009, N 1, Art. 17; N 9, Art. 1045; N 52, Art. 6420, Art. 6438; 2010, N 6, Art. 565; N 17, Art. 1988; 2011, N 1, Art. 4; N 7, Art. 901; N 27, Art. 3881; N 29, Art. 4291; N 49, Art. 7040; 2012, N 25, Art. 3268; N 31, Art. 4319, Article 4320; 2013, No. 19, Article 2331; No. 30, Article 4084; 2014, No. 30, Article 4224) (hereinafter referred to as the Federal Law) this Directive establishes the requirements for an agreement on direct compensation for losses (hereinafter referred to as the Agreement) and the procedure for settlements between its participants (members of a professional association of insurers and a professional association of insurers).

1. The terms of the Agreement are determined by the professional association of insurers for the purpose of repeated application in a standard form of agreement, which is subject to approval by the Bank of Russia after its approval by the professional association of insurers.

2. The agreement must contain:

the procedure for compensation of damage by the insurer that insured the civil liability of the person who caused the harm (hereinafter referred to as the insurer of the harm-cause), to the insurer that provided direct compensation for losses (hereinafter referred to as the insurer of the victim);

the procedure for determining the average amount of insurance payments;

the obligation of the insurer of the tortfeasor to compensate the insurer of the victim for the damage to the victim, compensated by him on behalf of the insurer of the tortfeasor, on account of the insurance payment under the compulsory insurance contract;

the obligation of a professional association of insurers to compensate the victim's insurer for damages to the victim compensated by it on behalf of the harm-cauter's insurer in order to make a compensation payment in the cases established by paragraph 6 of Article 14.1 of the Federal Law;

a list of documents to be drawn up when making direct compensation for losses, the procedure, timing and methods of exchanging these documents (including the procedure for their registration and storage);

the method and timing of sending by the insurer of the victim to the insurer of the tortfeasor, or in the cases established by paragraph 6 of Article 14.1 of the Federal Law, to the professional association of insurers, a preliminary notice containing information about the claim of the victim, the circumstances of the harm caused in connection with damage to the property of the victim as a result of a traffic accident, the expected amount of payment for direct compensation of losses (hereinafter referred to as preliminary notice);

conditions, method and timing of settlements between the parties to the Agreement;

procedure for resolving disputes between parties to the Agreement;

liability of the injurer's insurer for failure to reimburse the victim's insurer for the amount of paid losses within the period established by the Agreement (depending on the chosen method of settlement between insurers), or for the refusal of the injurer's insurer to reimburse the victim's insurer for the amount of paid losses;

liability of a professional association of insurers for failure to make a compensation payment to the victim's insurer within the prescribed period or unjustified refusal in the cases provided for in paragraph 6 of Article 14.1 of the Federal Law;

ways to ensure fulfillment of obligations under the Agreement;

the validity period of the Agreement, the procedure for making changes to the Agreement and the grounds for its termination.

3. The agreement must provide that if the victim submits a claim for compensation for damage caused to his property to the victim’s insurer, the latter is obliged to:

within the time limits provided for in the Agreement, but not more than seven working days from the date of registration of the claim for compensation for damage caused to the property of the victim, send a preliminary notification to the insurer of the harm-cauter (or in the cases established by paragraph 6 of Article 14.1 of the Federal Law, to the professional association of insurers) ;

When making a decision to refuse direct compensation to the victim, inform the insurer of the harm-cauter (or in the cases established by paragraph 6 of Article 14.1 of the Federal Law, a professional association of insurers) about the decision made within the time limits provided for in the Agreement, but not more than within seven working days from the date of the decision, and send him a copy of the reasoned refusal sent to the victim;

After direct compensation for losses has been made, submit to the insurer of the harm-cauter (or in the cases established by paragraph 6 of Article 14.1 of the Federal Law, to a professional association of insurers) in the manner and within the time limits provided for by the Agreement, a demand for payment of the compensated damage, as well as the following documents:

copies of documents confirming the occurrence of an insured event;

copies of payment documents confirming payment of funds to the victim or payment for repairs of damaged property.

4. Settlements between the parties to the Agreement for direct compensation of losses are carried out in non-cash form.

Settlements between the parties to the Agreement can be carried out in the following ways:

by reimbursing the amount of paid damages for each claim of the victim;

and (or) by reimbursing the average amount of insurance payments for the reporting period.

In order to carry out settlements between the parties to the Agreement by reimbursing the amount of paid losses for each claim of the victim, the Agreement must establish that the insurer of the harm causer (or in the cases established by paragraph 6 of Article 14.1 of the Federal Law, a professional association of insurers) is obliged (obliged) to reimburse the amount of paid losses in the amount of payment to the victim within the time limits provided for in the Agreement, but not more than within 15 working days from the date of receipt from the victim’s insurer, which provided direct compensation for losses, of a demand for payment of the compensated damage.

In order to carry out settlements between the parties to the Agreement by reimbursing the average amounts of insurance payments for the reporting period, the Agreement must establish such a reporting period, as well as the period from its end during which settlements must be made between the parties to the Agreement.

The procedure for determining the average amount of insurance payments is established by the Agreement. At the same time, when determining the average amount of insurance payments for the reporting period, the amount of insurance payments for the reporting period when damage was caused only to the property of the victims and the number of insured events settled in the reporting period in which damage was caused only to the property of the victims should be taken into account.

When determining the average amounts of insurance payments, the Agreement may provide for the use of other indicators.

5. This Directive is subject to official publication in the “Bulletin of the Bank of Russia” and in accordance with the decision of the Board of Directors of the Bank of Russia (minutes of the meeting of the Board of Directors of the Bank of Russia dated September 16, 2014 N 27) comes into force on the date of entry into force of the order of the Ministry of Finance of the Russian Federation on declaring invalid the order of the Ministry of Finance of the Russian Federation dated January 23, 2009 N 6n “On approval of the Requirements for an agreement on direct compensation of losses, the procedure for settlements between insurers, as well as the features of accounting for transactions related to direct compensation of losses,” registered by the Ministry of Justice Russian Federation February 6, 2009 N 13271, January 20, 2011 N 19530, August 20, 2013 N 29452 (Russian newspaper dated February 11, 2009, January 28, 2011, August 26, 2013).

Chairman of
the Central Bank
of the Russian Federation

Insurance agreement: direct compensation for losses under compulsory motor insurance

In Russia there are plenty of reasons to criticize compulsory insurance. And insurance companies receive the most frequent criticism for the policy they pursue regarding compensation for losses.

Unfortunately, the reality is that victims very often face a clear reluctance of insurance organizations to comply with the law, as well as their obligations to pay for damages.

In our article today we will look at one of the methods of compensation for losses under compulsory motor insurance, which is practiced in our country, namely PPV.

Dear readers! Our articles talk about typical ways to resolve legal issues, but each case is unique.

If you want to find out how to solve your particular problem, just call, it’s fast and free!

What it is?

Direct compensation for losses (hereinafter referred to as DCI) - this means that the party injured in an accident has the right to apply for compensation not to the culprit’s insurance company, but directly to its own insurance company with which the victim has a compulsory insurance agreement.

However, not everything is as simple as it seems because in order to receive a payment from your insurance company you will have to comply with a number of mandatory conditions .

If at least one of the conditions is not met, you will not be able to receive payment from your insurance company and you will have to settle the issue of payment for the damage caused by the culprit of the accident with his insurance company.

What does the calculation of the amount depend on?

To understand how the amount payable taking into account the wear and tear of the vehicle is calculated, you need to know a large number of nuances. For each type of car parts and its components, wear is calculated individually.

However, there are a number of certain positions, the concept of “wear and tear”, which does not apply:

Dye.
Repair and restoration work.
Spare parts for cars that can be restored.
Seat belts and airbags.

An important factor influencing the determination of the cost of repair work is the place of registration of the owner of the car, since the prices for spare parts and components are different in each region. On the official website of the RSA you can find out which economic region you belong to.

If you know the spare part number, the name of the material and the manufacturer, then you can also find out the average cost of both spare parts and standard hours of work, as well as the average price for the material in the RSA service (table of prices for spare parts from RSA and the amount of compensation for damage you can study here). Do not forget that the service station has expensive equipment that helps in identifying complex damage.

If such equipment is not available at the service station, then work on it will not be taken into account, and the funds transferred by the insurance company for car repairs may simply not be enough. Read about what to do in this case and whether you can choose vehicle repair instead of a cash payment here.

In order to know exactly what amount you are entitled to be paid so that you can bring your vehicle to the condition in which it was at the time of the accident, you will have to contact experts who will carry out all the relevant calculations.

We talked in detail about how to achieve maximum compensation under compulsory motor liability insurance in this material, and you can find practical tips on receiving payment here.

How to get insurance?

The insured can count on compensation for losses incurred by him under the procedure for direct compensation of damages in his insurance company, only if the following series of conditions are met :

There were only two participants in the accident, i.e. victim and culprit.
During the accident, no harm was caused to the health and life of people; damage was caused only to property.
The guilty person does not deny his guilt and, of course, you can only count on payment if you are not the culprit of the accident.
Both participants in the accident have a valid compulsory insurance policy.
The insurance company responsible for the accident has a valid license and also participates in the “Direct Compensation Agreement”.

You can find out more about the new conditions for compensation of losses here, and in this article we talked about the rules for the formation of payments and compensation limits.

Required documents

In order to obtain a PPV, you will need the following list of documents:

A notification filled out by both parties to the accident.
A certificate issued by the traffic police department in form 748.
If the accident was not registered according to the European Protocol, then it will also be necessary to provide a protocol on an administrative offense or a refusal to initiate a case.
Documents that confirm payment for services provided for the storage and evacuation of damaged property from the scene of an accident (in the event that the policyholder claims compensation for these expenses).
If the victim incurred other expenses related to the accident and wants the insurance company to reimburse him for these expenses, then supporting documents must be provided.
If the property belongs to another person, then a power of attorney is required to receive insurance payment.

A more detailed list of required documents to receive a sum of money can be found in this article.

Your insurance company must notify the culprit’s insurance company of your appeal within 7 working days.

The insurance company is obliged to consider your application and make a decision on it within 20 working days; during this period, the insurance company is obliged to either pay compensation for damage or provide its client with a reasoned refusal to compensate for his damage. Compensation can be paid to the applicant either to his current account or in cash at the cash desk of the insurance organization (more information about the terms and methods of payments here).

Direct Indemnification Agreement

Art. 26.1 this agreement is concluded between a professional association of insurers and members of the association.

Such an agreement between the parties regulates the conditions and procedure for settlements between the insurance company , which paid for the damage caused by the culprit to its client, and directly the insurance company with which the guilty person entered into a motor vehicle liability agreement, as well as between the insurance company implementing the PPV or the insurance company that entered into a compulsory insurance agreement with the guilty person. and a professional association of insurers, in those cases provided for by Article 14.1 of Federal Law No. 40.

An insurance organization that has entered into a motor vehicle liability agreement with the person at fault for an accident must fulfill its obligations to the insurance organization that has carried out the PPV in accordance with Article 14.1, Clause 5 of Federal Law No. 40. The at-fault party's insurer may fulfill its obligations under the agreement by compensating the amount of damages paid to the injured party for each of the injured party's claims or in the aggregate for all claims that were satisfied during the reporting period.

All the requirements that apply to the agreement on a PES, the requirements for the procedure for settlements between the insurance company of the guilty and the victim, as well as the specifics of accounting for these transactions are established by the Central Bank of the Russian Federation.

Disadvantages of the agreement

The practice of direct compensation for damage caused to the victim is not yet well established , since such compensation for losses appeared not so long ago. But every day such compensation for damage to the victim is gaining more and more popularity and it is natural that over time all the nuances of such interaction between the client, his insurance company and the insurance company of the guilty party will be fine-tuned.

The problem of payments for non-contact accidents

According to the legislation in force in the Russian Federation, payments under the PES can only be received if only two participants were involved in the accident. Of course, the regulations could have stated that no more than two, but for some reason this was not done. This made it possible for insurance organizations to refuse payments to clients whose damage was caused as a result of an accident without physical contact with another vehicle, that is, in non-contact accidents.

This kind of accident has long been recognized by the courts as insurance cases, if the fact of using the vehicle for its intended purpose has been established, and the fact of using the car for its intended purpose does not always mean that the driver is driving this car at the time of the accident. After all, these can also be actions that are directly related to driving a car: parking, braking, towing, etc.

It turns out that by its provision on an unalternative PES, the current legislation limits the rights of policyholders and forces them to sue insurance organizations. And this is the fault of the insurance companies themselves, because as practice has shown, they really like to force themselves into the framework of legal incidents.

Understatement of compensation

Even regardless of the fact that the current legislation has established that payments to the injured party are mandatory and there is no alternative, insurance organizations still have the possibility of underestimating compensation for insured events.

This problem exists in the classical form of resolving the issue of payment of compensation, and in the PPV this problem is more acute because this problem is facilitated by the imperfection of the current mechanism for mutual settlements of insurance organizations after compensation has been paid to the injured party. And the point here is that the postings of settlements made by the accountants of the insurance company under the PVU are carried out according to fixed amounts and these amounts are determined by the RSA.

RSA, in turn, does not care at all what amount the insurance company paid, since the amount of return compensation depends only on the region of the Russian Federation and the data of a particular vehicle . Naturally, this provision is absurd and causes a lot of controversy. The result of this policy of the RSA has become a situation in which in one case the insurance company can work to its detriment, and in another it is good to profit from such compensation for losses.

Legal educational program. Understatement of insurance payments for compulsory motor liability insurance:

Tricks on the part of organizations

Insurance organizations use a trick and force their clients to sign a special document, the so-called “Agreement to determine the amount of damage.” This document has legal force and allows you to accurately determine the period, procedure and amount of insurance compensation.

If the client of the insurance company signs this agreement, then all obligations of the insurance company will be considered fulfilled under this accident.

It should be borne in mind that this agreement can only be challenged in court and this is quite difficult to do.

Grounds for refusing a victim

The Investigative Committee has the right to deny the victim a PPV on the grounds that are set out in Appendix No. 7 to the “Agreement on PPV”, namely:

In the event that as a result of an accident, harm was caused to the health and life of people.
If there were more than two participants in the accident.
If one of the parties involved in the accident does not have a valid auto liability policy.
In the event that an accident occurred during a period when the period of insurance coverage under the policy of one of the participants in the accident was not in force.
In the event that the victim, at the time of contacting his Investigative Committee, has already submitted an application for compensation to the Investigative Committee of the guilty person.
In the event that the injured person did not submit a notification about the accident to the Investigative Committee or it was not completely filled out.
If at the time the victim wrote the statement, the insurance company’s license was revoked.

Direct compensation for losses under compulsory motor liability insurance

The Zetta Insurance company participates in a program under which you can receive direct compensation under compulsory motor liability insurance . According to its terms, you can apply for compensation for losses directly to us if you are not the culprit of the accident.

The procedure allows you to solve the problem that has arisen by interacting exclusively with your own insurance company and at the same time receiving a higher level of service and guaranteed compensation according to an already proven scheme. The personal agent of Zetta Insurance LLC is always ready to provide competent and timely advice on this issue, help in preparing documents and receiving the required compensation.

However, there are additional requirements for motor vehicle accidents. If any of these criteria are not met, direct compensation for damage under compulsory motor liability insurance will be impossible. Here is their list:

no more than two vehicles are involved in an accident;
the drivers of each of them have a compulsory motor liability insurance policy, and it is not expired;
the culprit of the accident has been identified and does not dispute his guilt;
the insurance company of the person responsible for the accident participates in this program (has signed an agreement on direct compensation for losses under MTPL, and its license has not expired);
no people were injured, only property was damaged.

Your application for direct compensation for losses under MTPL will be invalid in the following cases:

participants in the accident disagree about the circumstances of the incident;
you only need compensation for lost profits and moral damages;
the insurer was not timely informed of the need for direct compensation for damage under compulsory motor liability insurance;
damage caused to works of intellectual property or antique objects;
The accident occurred during a competition or training ride.

Contact our specialist by phone to get advice on any issue of interest, from filling out a form for direct compensation for losses under compulsory motor liability insurance to the rules for registering an accident using a simplified scheme. If you do not yet have a car insurance policy, then you can use the MTPL insurance calculator on our website.

Direct compensation for losses under compulsory motor liability insurance

According to Federal Law No. 40-FZ dated April 25, 2002 (as amended on May 1, 2019), every vehicle owner must insure his car by purchasing a compulsory motor liability insurance policy. This document provides guaranteed payments for losses incurred as a result of road accidents. However, in order to receive compensation for damage from an insurance company, a citizen must know how to correctly draw up an application, when to submit it, and also be prepared for related problems.

Direct compensation for losses under compulsory motor liability insurance - what is it?

Based on amendments made to the law on compulsory motor liability insurance in 2007, the article on direct compensation for losses came into force in March 2009. In practice, this innovation has significantly simplified the payment procedure.

PPV, that is, direct compensation for losses, means that the party injured as a result of an accident applies for compensation not to the insurance company of the culprit, but to the one where its own compulsory motor liability insurance policy was purchased. The presence of such a service saved car owners from a number of difficult actions, such as searching for the culprit of the accident and the office of his insurance company, which may be located in another city.

Before contacting an insurance company, experts advise studying the categories of contracts that fall under the PPV, as well as the circumstances under which the insurance company has the right to legally refuse payment.

The difference between an alternative PES and a non-alternative one

Before the introduction of PPV, a system of alternative payments in insurance cases was created in the Russian Federation. According to this scheme, a citizen had the right to choose which company to contact to receive compensation. In practice, this provoked the emergence of great difficulties and fraudulent schemes: drivers in some cases did not seek payments from companies, some car owners submitted applications to two insurance companies at once. As a result, this scheme was abolished.

Starting from August 2014, the Law “On Compulsory Motor Liability Insurance” No. 40-FZ contains information on non-alternative direct payments, which obliges car owners to contact only their insurance companies in the event of an accident. If property other than cars was damaged, or harm was caused to life and health, then the victim has the right to file a claim with the company of the culprit.

In what cases can you receive direct payments?

The conditions governing direct compensation for losses incurred are as follows:

Two vehicles were involved in the accident. In the case of three or more vehicles involved in the accident, it is not possible to apply for a PPV.
Only two cars were damaged. If damage was caused to surrounding people, buildings and other structures, then payments will be made in the manner prescribed by law.
The inspector's entry in the accident report must satisfy both parties. If the protocol of one of the parties is contested, it is impossible to compensate for losses under the PES regulations.
Availability of an MTPL insurance policy for each driver.
The preliminary estimate of the cost of damage does not exceed 50,000 rubles.
The insurance company is included in the PES program.

To effect direct compensation for losses, it is necessary to comply with all of the above conditions. If at least one of these points is missing, the injured party is forced to contact the insurance company of the person responsible for the accident.

Conditions of non-alternative PES

In comparison with the alternative PPV procedure, the non-alternative one, starting in 2016, assumes that the insurance company does not have the right to refuse a client to obtain a PPV in the case where the driver of the vehicle and the policy owner are not the same person. With the abolition of the alternative method of compensation, the non-alternative payment regulation has become synonymous with direct compensation for losses, therefore, its conditions correspond to cases in which direct payments can be obtained.

Subject to all the conditions regulated for direct payments, in the event that both insurance companies (the insurance company of the culprit of the accident and the victim) are in bankruptcy and their license has been revoked, the citizen has the right to apply for payments to the fund of the Russian Union of Auto Insurers (RUA).

When it is not possible to obtain a PPV

Russian legislation determines that registration of a PES is impossible when the following factors are present:

The insurance company’s license has been revoked and the company is not among the participants in the PES program;
Invalid car owner's insurance policy;
An application for a PPV has already been submitted to another insurance company;
When only moral compensation is paid;
The emergency situation is disputed in court;
The insurance policy has expired;
Information about the accident was not communicated to the Investigative Committee in a timely manner.

In such circumstances, the insurance company does not have the right to implement a PES.

How to apply for a PPV

Direct compensation for losses under compulsory motor liability insurance requires a certain procedure. To receive compensation from an accident, you need to know the deadlines for submitting documents, the list of papers, etc.

Who should apply, when and where?

The injured party collects and submits documents within 15 days after the accident; after this period, the application will not be accepted for consideration. The insurance company of the victim accepts the documents and, within a period of up to 30 days, makes a decision and pays compensation or refuses to pay. In case of refusal, the document will be provided to the client in writing with the right to appeal it in court.

How to draw up an application for direct compensation for losses under compulsory motor liability insurance

When the injured car owner contacts the Investigative Committee, he is given a form on which to write a statement. The form must contain the following items:

Name of the insurer's organization;
Full details of the applicant, including full name, contact information, place of residence and registration;
Circumstances and details of the accident;
Vehicle information;
The procedure for carrying out maintenance carried out for the purpose of assessing damage;
Signature confirming acceptance and submission of the application;
Information about the culprit of the accident.

List of attached documents

The list of documents required to process direct compensation for losses includes:

Certificate in form No. 748, taken from the traffic police;
A copy of the administrative violation protocol;
Copies of driver's license and passport;
Accident notification;
Vehicle passport, registration certificate, title documents;
Statement;
Documents confirming the assessment of damage caused;
If the car belongs to a legal entity, a waybill is required.

As a supplement, an act of acceptance and transfer of documents is attached, indicating in it which certificates and documents were transferred to the Investigative Committee.

What is an agreement on PWU under compulsory motor liability insurance and when does the insurance company enter into it?

The agreement on direct compensation for losses under compulsory motor liability insurance is established by the Law “On Compulsory Motor Liability Insurance”, which regulates its compliance by insurance companies. The agreement was developed by the union of auto insurers.

This act is signed by the RSA and members of the union; its purpose is to regulate PES situations. Together with Federal Law No. 40, the agreement provides a guarantee of direct compensation for losses in cases recognized as insurance. The insurance company enters into an agreement upon registration, thus the insurer is entered in the Register of participants in the PES agreement. The list of organizations included in the register is available on the official website of the RSA.

What affects the amount of payments

An independent assessment commission hired by the insurance organization determines the amount of compensation payment. When calculating the final amount, experts take into account the nature of the damage caused, the service life (wear and tear) and power of the vehicle, the date of issue and region of registration of the MTPL policy, the cost at which the vehicle was purchased, and the applicant’s driving experience.

The Unified Methodology for Calculating Damage, approved by the Bank of the Russian Federation, and the report drawn up as a result of the vehicle inspection carried out by the State Traffic Safety Inspectorate determine the amount of compensation. An independent expert decides what the final payment should be, taking into account the costs of repairs, materials and spare parts.

If the client disagrees with the final payment amount, he has the right to file a claim in court and demand from the insurance company not only compensation for losses from the accident, but also legal costs.

When determining the amount of payment, the period of registration of the insurance contract is also taken into account. If the contract is valid for a longer period, it is customary to expect a larger amount of compensation.

Refund procedure

Direct compensation for losses is carried out according to the following scheme:

In accordance with the law “On Compulsory Motor Liability Insurance”, the victim filed a claim with the insurance company. The Investigative Committee is provided with notification and documents prepared by the law enforcement organization.
The insurer that sold the MTPL policy to the victim assesses the circumstances of the accident and reviews the documents provided.
The insurance company will organize an independent examination that will assess the damage caused to the car in accordance with Article 12 of the Law “On Compulsory Motor Liability Insurance” No. 40-FZ.
If all necessary conditions are met, the accident is recognized as an insured event. The insurance company undertakes to pay compensation to the client within 1 month.
The insurer of the victim has the right to demand compensation from the insurance company of the person responsible for the accident for the funds paid to the victim.
A corresponding demand presented to the insurer of the guilty party obliges that party to pay the insurance company the funds spent on compensation.

For what reasons can PES be denied?

The injured party's insurance company has the right to deny direct compensation to its client. This happens for the following reasons:

The application was submitted to the Investigative Committee of the person responsible for the accident;
When drawing up the accident report, traffic police officers were absent, as a result of which errors were made in the forms, and there were discrepancies in the damage statements;
The injured party demands compensation for lost profits or moral damage;
A traffic accident occurred during an exercise, competition or test.
The application was submitted more than 15 days after the accident;
A trial is underway to identify those responsible for the incident;
The participant in the accident has Green Card insurance, not a compulsory motor liability insurance policy.

Problems of direct compensation for losses and ways to solve them

The procedure for direct compensation of losses eliminated some difficulties in obtaining compensation. However, like many bureaucratic operations, obtaining a PES involves a number of pressing problems.

The problem of payments for non-contact accidents

One of the conditions for direct compensation payments is the participation of two vehicles in an accident, and the cars must collide. In cases of non-contact accidents, direct compensation for losses is not provided.

As judicial practice shows, the lack of direct contact between vehicles during an accident is not a reason for refusing direct payment if the car was used for its intended purpose: parked, towed, driving or stopped.

Underpayments under PES

Some insurance companies resort to understating the amount of compensation in order to save money, despite the legislation. The main problem is that with PES, calculations are made from fixed amounts established by the RSA. The amount of payments for each insured event is inferior in importance in the process of forming the final amount of information about the damage to the car and the region in which the accident occurred.

In order to receive a satisfactory amount of compensation, it is advised to go to court and conduct an additional examination of the damage to the vehicle and the real estimated cost of new parts and repairs.

Offer the victim to enter into an agreement to determine the amount of damage

When concluding an agreement with an insurance company, the client is often offered to enter into an agreement for a certain amount of damage. In the event of an insured event, this document establishes a fixed amount of payment, as well as the terms of issue.

The signed agreement has legal force, which makes appealing it almost impossible, since the car owner gave his own consent. Before concluding an agreement with an insurance company, pay attention to the clause on fixed compensation and procedures in the event of an accident.

The system of direct compensation for losses under compulsory motor liability insurance at the time of 2019 made it possible to prevent a number of difficulties associated with receiving payments. It prevents fraudulent actions of insurance companies, prevents unlawful refusals by insurers, reduces the waiting time for payment and simplifies the procedure for receiving funds. However, in order to count on a PPV, an application is submitted to the insurance company in the first 15 days after the incident, and they also monitor compliance with all conditions both upon the occurrence of an insured event and at the stage of issuing a compulsory motor liability insurance policy.

Direct compensation for losses (DLP) under compulsory motor liability insurance

Until August 2, 2014, the party injured in an accident could apply to the insurer for compensation for losses in two ways:

Contacting the insurer of the person responsible for the accident. The victim in this case needed to find the office of the culprit’s insurance company, then contact the company’s employees and resolve the situation;
Applying to your insurer for a direct loss claim (DCL), which was only possible in cases where two cars were involved in an accident and no one was injured in the accident.

This approach to compensation for losses led to the fact that insurers tried by hook or by crook to refer the victim to another insurance company. Very often, insurance company employees deliberately made it difficult to submit the necessary papers so that the driver would refuse to pay.

At the same time, some drivers could also abuse the position. For example, applications were often submitted to two insurers at once.

To exclude such actions and create a system of insurance payments under compulsory motor liability insurance, a document was created by law on non-alternative direct compensation for losses. In other words, the injured party can only apply for an insurance premium to its insurer. In turn, the insurer cannot refuse to consider the case.

Direct compensation for losses implies that the party injured in a traffic accident can apply for an insurance premium to its insurer with whom the MTPL agreement was signed.

Despite the fact that the legislation clarified such points and removed the two-sidedness of the situation, the negative side of the new rules is that the POL was limited to certain circumstances that must occur during a vehicle accident. If at least one of the items listed below is not included in the insured event, then your insurer will not be able to use the PES.

Direct Indemnity Terms of Use

You can apply for payment from your insurer if you comply with the following:

Two cars were involved in the accident, and each driver has a valid MTPL policy.
Only cars were damaged in the accident. There was no harm to people's health or lives.
There is no mutual fault of the drivers (there is one culprit and one victim).
The insurance company has a valid license to issue MTPL policies.

The driver will not be able to obtain a PDP under the MTPL agreement if:

The insurer of the person responsible for the traffic accident has already received a claim regarding this insured event;
Participants in a traffic accident decided to use a simplified system for registering an accident without police officers, but the documents about the accident were filled out incorrectly;
The applicant demands that the insurance company compensate for his moral damages or benefits that were lost due to the traffic accident;
The accident occurred with the participation of a training vehicle, during an official racing competition, etc.;
During the accident, damage was caused to securities, cash, art objects, antiques, etc.;
The fact of a traffic violation that caused the accident is the reason for legal proceedings;
In other cases, which are specified in the agreement of members of the Russian Insurance Association.

Direct compensation for losses is quite easy to learn. The driver must submit a set of correctly completed papers, after which he will be sent for examination. If the documents are completed correctly and a positive decision is received from the insurer of the person responsible for the accident, the funds will be transferred to the driver’s account, which must be indicated in the application. Everything else that follows (proceedings between insurers, disputes, courts, etc.) no longer relates to the party injured in the accident.

It should be taken into account that many insurance companies try to minimize the amount of direct compensation for losses. In addition, if the amount of the insurance premium is significant, then the insurer of the victim will by all means send the driver to the insurance company of the culprit.

It should be noted that:

It is often impossible to resolve all direct compensation issues simply because the documents submitted by the injured party are incorrect or incomplete, allowing the insurance company to claim that it received false information about the accident. Because of this, you will not be able to settle the incident with your insurer under the PPV.
The latest amendments to the law say that the injured party can apply to their insurance company for an insurance premium under compulsory motor liability insurance for direct compensation of losses, regardless of whether the driver is listed in the policyholder's policy or not. In the past, it was very common for insurance companies to refuse any payout under a PPV if the insured and the owner of the vehicle on the policy did not match.
Motorists should also take into account that only one form of certificate from the traffic police complies with the rules of compulsory motor insurance, which is provided to the insurer along with other papers to obtain a PPV. This is Form 748, which is approved by the relevant order of the Russian Ministry of Internal Affairs.
If the accident did not cause harm to human health, the amount of damage caused to the vehicle does not exceed 50,000 rubles, two cars were involved in the accident, both drivers have valid MTPL policies, and the circumstances of the incident do not cause disputes among the participants in the accident, then direct compensation for damage under compulsory motor liability insurance is issued without the participation of the police.