OSAGO reform: What changes will there be in insurance rates according to the Directive of the Central Bank in 2021?

Normative base

The Bank of Russia announced the changes. Draft Directive No. 53241 was published on the official website of the Central Bank of the Russian Federation, confirming all the adjustments. The regulatory act came into force on January 9, 2021.

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Changes in compulsory motor insurance from April 2: E-garant

"Single Agent" and "E-Guarantor"

Innovations concern the issuance of electronic policies.
Starting from April 2, 2021, the client will be able to choose an insurance company when purchasing an electronic version of the auto insurance policy . Previously, this process was more like playing roulette: you had to buy where the system offered. Now all insurers licensed under MTPL an electronic policy for purchase .

What has changed in MTPL tariffs?

First of all, the changes affected the base rate of MTPL tariffs. It may vary depending on the vehicle category. The legal act specifies the maximum and minimum values. The company receives the right to independently determine the value of the indicator within the framework specified by law.

The adjustments entailed an expansion of the price corridor for MTPL policies. The minimum and maximum indicators have shifted by 20%. The increase will not affect owners of motorcycles and scooters. For this category of vehicles, the base tariff decreased by 10.9%.

Price corridors for MTPL policies in 2021.

The upper limit for passenger cars of legal entities is also reduced by 5.7 percent, to 2058 - 2911 rubles. For taxi drivers, the tariff corridor is expanding in both directions and will range from 4,110 to 7,399 rubles.

Liberalization of motor vehicle rights: what is it?

It is expected that car drivers will be asked to choose their own amount of insurance coverage from the following options:

• 400 thousand rubles (material damage) + 500 thousand rubles (damage caused to the life and health of the victim);
• 1 million rubles – for damage, both material and to the life and health of the victim;
• 2 million rubles - for damage, both material and to the life and health of the victim.

An additional option will be the ability to independently regulate the period for which the insurance contract is concluded. If, according to current rules, a policy is issued for only 1 year, then innovations will allow you to obtain a compulsory motor liability insurance policy for three years.

paragraph 1 of Article 10 of Law No. 40-FZ “On compulsory insurance of civil liability of vehicle owners”

“The validity period of a compulsory insurance contract is one year, with the exception of cases for which this article provides for other validity periods of such a contract.”

How has the price of the MTPL policy changed?

Initially, it appears that the base rate has remained virtually unchanged. However, insurers strive to set maximum rates. Innovations can lead to the fact that the cost of compulsory motor liability insurance policies will increase by 20%.

Subsequently, it is planned to legislatively regulate the specific value of insurance prices. So, if a car owner uses the services of one company, the cost can be reduced. However, this is just a suggestion. It is not fixed by regulations.

What will happen to KBM in 2021?

The bonus-malus coefficient allows you to link the cost of insurance to compliance with traffic rules and the citizen’s driving style. By traveling without accidents, a citizen will be able to receive a discount. Its size reaches 50%. If a person is in an accident due to his own fault, in 2021 the indicator increases the cost of the MTPL policy. As a result, the price may increase by 145% of the standard price.

Previously, the KBM changed at the time of policy renewal. Now the indicator is calculated for the year. The coefficient is assigned to the individual. Before the changes were made, the calculation was made for the owner of the car and the driver. As a result, adjustments to the indicator during an accident could affect all persons who were included in the policy.

A citizen will be able to receive a discount, or the BMR will increase, if during the year the driver is involved in an accident through his own fault.

It does not take into account when the MTPL agreement was concluded.

New MTPL rules from January 9, 2021

In Russia, on January 9, the directive of the Central Bank of the Russian Federation came into force to expand the tariff corridor in compulsory motor liability insurance by 20% up and down. Thus, now the range of base tariff rates for passenger cars for individuals is now 2746-4942 rubles instead of the previously existing range of 3432-4118 rubles.

According to TASS, also starting from January 9, the division of drivers by experience and age into 58 categories instead of the four that existed before will be clarified. For drivers aged 16-21 with up to two years of driving experience, the maximum coefficient increases to 1.87 from 1.8, and the coefficient for “multidrive” policies increases from 1.8 to 1.87 (without limiting the number of drivers allowed to drive ).

Discounts for experience and age begin to apply, the largest - 7% (corresponding to a coefficient of 0.93) is established for drivers over the age of 59 with six years of experience. The previous MTPL system did not provide discounts for length of service and age.

In addition, according to the instructions, the document provides for a change in the calculation of the assignment of the bonus-malus coefficient (BMC). The KBM will be assigned to the driver once a year on April 1 and will not be recalculated during the year. Interfax explains that if on April 1, 2021, a car owner has several bonus-malus coefficients listed in the AIS RSA system, then he will be assigned the lowest of them. The new KBM system assigns the insurance history to the driver and does not allow it to be reset during a break in driving: all accumulated discounts will be retained.

A legal entity will be assigned a single one for all vehicles in the KBM fleet, which will significantly simplify the holding of competitions for concluding MTPL contracts.

Increasing the coefficient for OSAGO policies without restrictions

The driver has the right to purchase open insurance. It does not imply an indication of a specific list of persons who are allowed to drive a vehicle. Typically, such cars are used to conduct business. For the insurer, providing such a MTPL policy is an additional risk. Therefore, the cost of insurance is higher than the classic one. In 2021, the price is calculated taking into account the KO - the coefficient for a policy without restrictions.

Adjustments will lead to an increase in the indicator. It will increase to 1.87. Previously, the coefficient was 1.8. This will affect the price of compulsory motor liability insurance, increasing the cost of insurance without restrictions by 4%. However, the changes will only affect car owners who do not have the status of legal entities.

conclusions

1. On average, the increase in prices for compulsory motor liability insurance will be 6.5%, as well as the average insurance payment.
2. Due to the increase in the cost of spare parts, insurance repair services will also become more expensive.
3. This reform is aimed at stopping corruption schemes, but no one knows how things will actually turn out.
4. It also remains unknown how exactly the KBM coefficient will be calculated if the driver did not enter into an MTPL agreement in the previous year.
5. Apparently, the cost of insurance will increase for car owners of all categories, despite reassuring statements from the Central Bank and insurers.

New rules for calculating the age and length of service coefficient for compulsory motor liability insurance

In 2021, the price of insurance depends on the age of the driver and his experience. The more experienced a person is, the cheaper it will be to purchase an MTPL policy. Age and length of service are taken into account using the KVS coefficient. The indicator has been affected by significant changes.

The gradation by age and length of service is increasing. The coefficient itself has undergone the following changes:

1. For those under 22 years old who received their license less than 3 years ago, the rate has increased. Initially it was 1.8. Now the calculation takes into account the coefficient of 1.87.
2. If a person over 30 years old has 10 years of driving experience, you can count on a small discount. The coefficient decreased by 0.04. Initially it was set at the level of one. Now the figure is 0.96.

After reading the table, the driver may consider the changes insignificant. To better understand the peculiarities of the influence of the coefficient on the cost of the MTPL policy, it is recommended to study an example. Let's say a citizen is 18 years old. He immediately passed his license, got a car and purchased compulsory motor insurance.

From the above example it is clear that over the course of 13 years, the citizen overpaid almost half the cost of the insurance policy. After this, the citizen’s length of service allows him to receive a 4% discount. The calculation will be made taking into account the FAC of 0.96. As a result, over the next 13 years the person will be able to repay the overpayment. At the age of 43, savings begin. The cost of the policy is reduced by 4% per year.

From January 9, 2021, changes also affected the procedure for determining driving experience. The law states that the indicator will be calculated starting from the moment of obtaining the right to drive a car of a certain category. Previously, the experience was general. This meant that it was determined based on the date of the earliest open category. Let’s say that at the age of 19 a citizen received a license to drive a vehicle of category B. Then, at the age of 40, a person passed the license of category C. It was considered that he had 21 years of experience.

In 2021, the indicator is calculated separately for each category. In the above example, the truck driver's experience will be 0 years. The date specified in the license is also taken into account. So, if a driver’s license was obtained on May 1, 2021, it is considered that the citizen’s length of service will be two years not on January 1, 2020, but on May 1.

Accident-free driving rate

The indicator is calculated using the table enshrined in Federal Law No. 40 On OSAGO. She hasn't actually changed. When calculating the BMI, the insurer takes into account each indemnity and compensation payment.

If the coefficient does not correspond to the information contained in the AIS OSAGO, the adjusted indicator is used for the entire period of validity of the contract, during which the incorrect data was used. In simple terms, the insurer will set the minimum coefficient value. There was confusion earlier.

If a citizen purchases insurance for the first time, the BMI value is set at level 1. The indicator is determined annually. It is set for the period from April 1 to March 31 of the following year.

About what awaits us

Next year, the norms of the initial stage of the “automobile citizenship” reform will be introduced. It concerns car owners specifically. In the fall, MTPL coefficients came into force, based on the age of the car owner, as well as his experience. From the beginning of next year, owners will have the right to choose their own tariffs and payment option for compulsory motor liability insurance. By 2021, it is planned to abolish the basic cost of insurance - the result will be that its amount will be determined individually during negotiations between the insurance company and the driver of the vehicle.

An example of calculating the cost of an MTPL policy according to the new rules

The formula for calculating compulsory motor liability insurance is enshrined in Federal Law No. 40 of April 25, 2002 On the Automobile Citizen. It looks like this:

Cost of OSAGO = Basic tariff x CT x KBM x KVS x KO x KN x KM

The following coefficients are used in the calculation:

1. CT - territory coefficient. The indicator is set for the area in which the car is registered.

The more vehicles drive on the region's roads, the higher the indicator. This is associated with an increased risk of getting into an accident.

2. KBM - bonus-malus coefficient. Depends on the number of accidents that occurred due to the driver’s fault during the reporting period. The indicator may reduce the cost of insurance or lead to an increase in prices. The value is determined in accordance with the table established by law.

3. KVS - coefficient of age and experience. The younger the driver, the higher the risk of being in an accident. The chance of an insured event also depends on the number of years during which a person has the right to drive a car.

4. KO - limited use coefficient. Depends on the number of persons authorized to drive a vehicle.

5. KN - coefficient of violations. The indicator is provided for in Article 9 of the Federal Law on Compulsory Motor Liability Insurance.

6. KM - power factor. Depends on the strength of the car engine.

The law defines a cost corridor within which the insurance company has the right to set a basic tariff. In practice, organizations almost always use the maximum indicator. OSAGO is considered an unprofitable type of insurance. In this way, companies seek to compensate for possible costs.

To understand the price of an MTPL policy at the new 2020 tariffs, it is recommended to study the example. It is better to look at three categories of drivers at once:

• the average citizen who owns a budget vehicle;
• a young car enthusiast who recently bought a powerful car;
• an experienced elderly person using a low-power vehicle.

The reform of the 2021 OSAGO tariff price corridor was carried out in order to increase the cost of the policy for novice drivers and reduce it for experienced drivers. Persons who comply with traffic rules can also count on a discount. Studying examples allows us to understand whether legislators succeeded in achieving their goals.

Let's say that in the first example the average citizen lives in the city of Sochi. For this region, the CT is set at 1.2. A person owns a Kia Rio car. The vehicle's power is 107 horsepower. KM will be set at 1.2. The driver purchased a one-year limited policy. Only the owner of the car is included in the insurance. He turned 30 years old. Of these, a person has a driver’s license for 5 years. The accident-free experience is 3 years. The BMR was set at 0.85. The insurer has set a maximum base rate. This phenomenon is the most common in practice. As a result, the cost of the policy at the new MTPL tariffs for 2021 will be:

• old tariff - 4118×1.2×0.85×1×1×1.2 = 5040.43 rubles;
• new tariff - 4942×1.2×0.85×1×1.04×1.2×1 = 6290.97 rubles.

The base coefficient plays a decisive role. Its increase by 20% led to a slight increase in the cost of the MTPL policy.

Let's look at another example. Let's say a young driver from Moscow purchased a BMW X5 with 420 horsepower. KRP is 2, and KM is 1.6. Let's say a citizen purchased an unlimited policy for a period of one year. The driver was 21 years old. Of these, the person has the right to drive a vehicle for 2 years. Last year, a young driver was involved in an accident. He was found guilty of the incident. As a result, the BMR was set at 1.55. Additionally, there was a violation of Federal Law 40 on OSAGO. The citizen provided false information to the insurance company, which resulted in an underestimation of the cost. As a result, the insurance price will be:

• old tariff - 4118×2×1.55×1.8×1.6 = 36765.5 rubles;
• new tariff - 4942×2×1.55×1.87×1.6×1.5 = 68757.05 rubles.

The amount is huge. However, the insurer has the right to demand its provision.

Let's imagine that the third driver lives in Buryatia in a small locality. Krp for this area is 0.6. The citizen has a Renault Logan car, the power of which is 80 horsepower. KM is set at 1.1. A limited OSAGO policy was purchased for a period of one year. The owner of the car is included in the document. He is 55 years old. Of these, the citizen has been driving a vehicle for 25 years. The driver managed to go 15 years without an accident. The BMF is set at 0.5. To buy a policy, you will need to pay:

• old tariff - 4118×0.5×0.6×1×1.1×1 = 1358.94 rubles;
• the new tariff is 4942×0.5×0.6×0.96×1×1.1×1 = 1565.63 rubles.

From the above examples, it is clear that the cost of insurance increases both for experienced motorists who follow traffic rules and for young drivers who violate current regulations. We can say that in 2021 the price of the policy has risen. The hardest part will be for inexperienced car enthusiasts. For them, the cost of the policy can almost double.

Nuances

In 2021, a pilot project is planned to be launched in several regions of the Russian Federation to identify car owners who neglect the need to purchase compulsory motor insurance. The procedure will not be carried out by employees of the Ministry of Internal Affairs, but by new video cameras. They are equipped with an intelligent information processing system. Federal Law No. 40 states that the absence of compulsory motor liability insurance or a violation in the process of its registration entails the imposition of a fine. The norm applies to all categories of citizens.

The exception is cars that were received less than 10 days ago. This fact must be confirmed by the relevant document. In 2021, the following fines have been established for neglecting the need to purchase compulsory motor liability insurance - 500 rubles, if insurance is present, but issued with violations, or 800 rubles, if the policy has not been purchased. A fine is levied on a citizen every time he is within the camera's coverage area. Collection may increase to 8,000 rubles. Today, a bill to tighten punishment is being considered in the State Duma.

It is permissible to reduce the amount of the fine. To do this, you need to deposit funds within 20 days from the date of imposition of the penalty. The easiest way to get insurance is to use trusted resources and contact the insurer directly. If a compulsory motor liability insurance policy is issued via the Internet, a deferment is provided. The electronic document will become valid only 3 days from the date of purchase. This excludes the possibility of issuing compulsory motor liability insurance after an accident. Similar precedents have been observed previously.

Not on paper

If the identification of car owners who have not issued compulsory motor liability insurance is successful, it is planned to completely abandon the paper version of the policy - everything will be replaced by an electronic document. An employee of the Ministry of Internal Affairs can check its presence using a special device. This innovation will reduce the number of frauds with the MTPL policy.

Changes in compulsory motor liability insurance from 2021, the latest news has excited most car owners. But you need to understand that the reforms in many ways make it possible to stop a number of corruption schemes of insurance companies, making the lives of drivers easier.