Auto insurance: what it is and how it works

Every motorist knows: you can not get behind the wheel without a CTP policy. This is prescribed by law. We will understand what it is and how it works.

CTP is a compulsory third party liability insurance. That is, if a car accident happened due to the fault of the owner of the policy of CTP, it will not be the victim, but his insurance company.

MTPL policy is the same mandatory document for driving a car as a driver’s license.

Why do I need a policy CTP

In short, CTP protects you from unexpected expenses in the event of an accident:

  • If you become the culprit of an accident, your insurance company will indemnify you for damage to property and the health of the victims. You will have to repair your car by yourself (if you have not purchased an auto casco policy in advance ).
  • If you crashed your car, the insurance company will pay for the repair of the accident.
  • If both drivers are guilty of an accident, the insurance companies will pay both of them – usually half of the damage will be paid. In controversial cases, the degree of responsibility of each participant in the accident and the ratio of payments is determined by the court.

The maximum amount of payments for repairs on compulsory motor TPL insurance is 400,000 rubles. If the restoration of the car is more expensive, the victim has the right to demand from the person responsible for the accident to pay the difference between the actual damage and insurance compensation.

To minimize the risk of monetary losses, in addition to MTPL, you can buy a policy of DSAGO – voluntary motor third party liability.

Coverage under such a policy can be much higher – at least up to 30 million rubles. In this case, even if a very expensive car is badly damaged due to your fault, you will not have to pay for its repair.

What documents are needed for registration policy

By law, the following documents are needed:

  1. passport or other identity document – for an individual;
  2. certificate of state registration of a legal entity – for a legal entity;
  3. PTS or other vehicle registration document – registration certificate, technical passport or technical certificate;
  4. driver’s license or a copy of it – for all who will drive a vehicle;
  5. vehicle diagnostic card that confirms its compliance with mandatory safety requirements;
  6. insurance application.

The insurer is not entitled to deny you the CTP policy if you have provided the entire set of documents. You can contact any branch of a licensed insurance company or buy a policy online on its website. If you are denied registration of the policy, you can send a complaint to the Bank of Russia .

How to buy a CTP policy without leaving home

Electronic CTP policy is a convenient alternative to the usual paper. A list of companies from which you can purchase the policy online, you will find on the website of the Russian Association of Motor Insurers (PCA) .

Electronic policy is enough to print and carry with you. According to the series and number, the traffic police officer can check the relevance of the policy through the hotline or the RSA information base. You yourself can look into this database, if necessary.

If you need a policy on a strict reporting form, you can get it at the insurer’s office or by mail for a small additional fee.

How not to buy a fake insurance policy

  1. Check licenseCheck whether the company has a license for compulsory motor TPL insurance can be on the website of the Bank of Russia . Download the “Subjects of the insurance business” table, find the right company there and check. You can also check the availability of a license online using the Directory of Financial Market Participants (official information of the Bank of Russia). The insurer is not entitled to sell policies if his license is revoked, suspended or limited.
  2. Buy in a safe placePurchase a policy at the sales office or on the official site of a licensed insurance company.Follow the links to the official websites of insurers from the PCA website .Scammers create sites clones of well-known insurers. Check the address bar in the browser, including when navigating to other pages of the site. If in doubt, before you pay the policy, call the insurance organization’s hotline and clarify all the questions.The policy in paper form can also be purchased from an insurance agent authorized to enter into contracts of CTP. To avoid possible trouble, check the insurance agent’s contract with the insurer.Buy an electronic policy only independently on the website of the insurance company. Do not give intermediaries access to your personal account and personal information: they can use them to your detriment.
  3. Check the policyFrom January 1, 2018, on each policy on a paper form there should be a QR code in the upper right corner. This is an additional protection against forgery. Read the QR code (for example, using a special application on your smartphone) and look at the insurance company name, policy number, issue date and expiration date. Be sure to also check the make, model, VIN-code and registration number of your car. If you find at least one mistake, do not purchase a policy – it will not protect you from damages in the event of an accident due to your fault. CTP policies can also be checked on the PCA website . There you will know which insurance company it belongs to and whether its license is valid. If the policy does not appear in the PCA registry, immediately contact the police and issue a new insurance policy.

How much is CTP

The price of the CTP policy is made up of the base fare and various ratios. This takes into account:

  1. vehicle type – freight or passenger;
  2. who is the owner – a natural or legal person;
  3. region;
  4. age and driving experience of the driver.

The tariff is also influenced by the power of the car, the number of accidents in which the buyer of the policy was to blame, and other factors. More information about how the cost of the policy is formed and how you can verify the correctness of the calculation yourself can be found in the article “ How the CTP policy price is calculated ”

Being a neat driver is beneficial. For each year of accident-free driving a discount is put – 5%, its maximum size can be 50%. The exact size of your personal discount – bonus-malus coefficient (MSC) can be viewed on the RSA website .

What to do if an accident happens

All participants in the accident must complete the accident notice and send them to their insurance companies within five working days. If your insurer’s office is not nearby, you can give a notice to its representatives in the region where the accident occurred.

But before proceeding to the design of the euro protocol, determine  if this is possible in your case.

Who to contact for a CTP insurance

  • If only vehicles have been injured in an accident and all drivers have valid CTP policies, you can submit an insurance claim to your insurer.
  • If people are injured in the accident, the application must be submitted to the insurance company of the person responsible for the accident.
  • If your insurer has revoked the license, submit an application to the insurance company responsible for the accident.
  • If his insurer also revoked the license, you can get a refund on the CTP in the PCA

The insurer must review the insurance claim within 20 business days. If during this period the insurer has not issued a referral for repairs, he will have to pay you a penalty – 1% of the amount of the insurance indemnity for each day of delay.

How to compensate for the damage

From April 2017, according to the law on OSAGO, the priority form of damage compensation is restoration. Insurers send injured Russian cars to their partner service stations (STO). If you have a new car – no older than two years, you will be directed to the official dealer of your brand.

  • Excluding wearDuring the refurbishment, in contrast to the cash payment, the insurance company does not take into account the wear and tear of parts and components. Only new parts will be delivered to your car.
  • Quality assuranceThe minimum warranty period for car repairs is 6 months, for bodywork and paintwork – 12 months.
  • Fixed termThe deadline for repairs is 30 working days from the day the car arrives at the service station. For violation of the terms of repair the insurer will pay you a penalty – 0.5% of the amount of insurance compensation.

Is it possible to choose car service yourself

You can choose any car service from the list of the insurer within a radius of 50 km from your home or place of accident. You can make a choice when buying a policy, and at the stage of settling the loss.

The insurer is obliged to publish on its website an up-to-date list of partner stations with addresses, brands of serviced vehicles and approximate repair periods.

If you want to repair the car in the service station, with which the insurer has no contract, you must obtain a written consent of the insurance company. In the application for insurance compensation, indicate the full name of the selected service station, its address and payment details so that the insurer can transfer payment for the repair to it.

You can get money in the following cases:

  • In the list of insurance companies there are no stations near – within 50 km – from your home or place of accident. And you do not agree to transport the car at the expense of the insurance company to a remote car service.
  • The car is new, and there is no official dealer of the required brand in the list of the insurance company.
  • The insurance company cannot send the car for repair to the service station selected at the conclusion of the contract.
  • The damage from the accident exceeds 400 thousand rubles (50 thousand rubles when registering an accident on the europrotocol), and the victim does not agree to pay extra for repairs to the service station of the insurer.
  • The machine is not recoverable.
  • The owner of the damaged car is disabled.
  • The owner was killed or severely injured. Money can get close: spouse, parents or children.
  • All participants of the accident found guilty and do not agree to pay extra for repairs. The car owner and the insurance company entered into an agreement on damages in cash.

What to do if the quality of repair is not satisfied

During the warranty period, you can write a statement to the insurer with the requirement to correct the deficiencies. The expert of the insurance company is obliged to inspect your car for 5 days and send it for repair if the information about the defects is confirmed.

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