Since 2014, legislative amendments have been made. Now insurance companies that violate the terms of payment of compensation are required to pay a penalty for compulsory motor liability insurance. Its size depends on the amount of payments and the timing of the delay. Read more about when it is applied and how the penalty for compulsory motor liability insurance is calculated, read on.
CTP
Since the introduction of OSAGO, it has had a positive impact on the situation on Russian roads and on the development of the insurance market. Despite the shortcomings, OSAGO continues to develop. Any vehicle owner is required to insure their liability. When contacting the company, the premium is calculated. The price of the policy depends on correction factors, tariffs, but is regulated at the legislative level.
For example, the price of a policy for insurance of a truck with a capacity of 120 liters. from. for a year with an unlimited number of people over 22 years of age with a driving experience of up to two years, admitted to management, in Berdyansvka and Moscow will be different.
Legislation
According to legal terminology, forfeit refers to financial resources that one party to a transaction agrees to pay to the other if the conditions of the contract are not met.
The CMTPL penalty can be applied to the insurance company, which allowed the delay, in the process of considering claims from the driver or when considering applications for other payments.
The Federal Law No. 40 “On Compulsory Third-Party Liability Insurance” spells out the rights and obligations of the insurance company, its responsibility in case of failure to fulfill the obligations assumed. In particular, the law provides for the mandatory payment of a penalty in the event of:
- failure to meet the deadlines for payments or late issuance of directions for repair of the vehicle (the document indicates the date of completion) due to the fault of the insurer;
- non-observance of the payback period, if such a condition is provided for by the contract.
All of these issues are discussed in detail in:
- Civil Code.
- Federal Law No. 4015-I “On Insurance Companies”.
- Federal Law No. 40 “On CTP”.
How to calculate the penalty for compulsory motor third party liability insurance?
If the insurance company has violated the terms of payment, then it must pay a penalty - 1% of the amount. Calculation of the penalty for compulsory motor liability insurance is carried out according to the following formula:
H = D x (1: 75) C x B: 100, where:
N - for liability insurance;
- D - the number of days of delay;
- C is the refinancing rate;
- B - the amount of compensation provided for by the contract.
The day of issuing the payment receipt is also taken into account in the calculations. Nuances may arise during vehicle repair. Responsibility for the quality and timing of work lies with the insurer.
If the company has not paid compensation at all, then the calculation will be based on the total amount of debt. If the partial payment was nevertheless made, then the penalty will be calculated based on the remaining amount of the debt. In the case of issuing a referral, this amount will depend on the timing of its receipt.
Limits
The law provides for restrictions on payments. If harm has been done:
- only to property - 400 thousand rubles;
- life and health - 500 thousand p.
Another limitation is that the amount of the penalty cannot exceed the sum insured under the contract. The application for the CTP insurance penalty is submitted to the company as part of the pre-trial proceedings. It indicates the details for the transfer of funds.
Examples
Insurance neglected the terms of compensation for losses and delayed payment for 20 days. The amount of compensation is 120 thousand. One day of delay costs 120 x 0.01 = 1.2 thousand rubles. To receive the payment, the client must contact the company with the appropriate statement.
After the accident, the car was damaged in the amount of 150 thousand rubles. The full set of documents for the payment of compensation was transferred to the company on September 1. As of September 30, no payment was received. The total delay is 10 days. For each day of delay, the company must pay 1.5 thousand rubles.
The timing
Within 20 days from the receipt of the full set of documents, the insurance company is obliged to pay compensation, issue a referral for repair work or provide a reasoned refusal. If a shortage of securities is found, the insurer is obliged to notify the client about this and provide a complete list of missing documents. If the papers do not contain the necessary information or documents were not provided at all, the organization may not pay the penalty and other compensations.
The terms of payment of the penalty must be specified in the contract. Although usually this item is missed by the company. Therefore, after a month after the adoption of the relevant decision, you need to file a claim with the company and the courts. Such cases are dealt with quickly. Within 10 days after the decision is made, a penalty and compensation must be paid.
Arbitrage practice
If it comes to court, then you need to draw up two statements of claim. The first is about the payment of compensation for damage, and the second is that the client is entitled to a mandatory liability insurance penalty. Both applications must be considered in a single hearing. The statement itself must indicate:
- the identification code of the judicial authority to which the application is sent;
- all details of the defendant;
- all certificates concerning road accident;
- examination results;
- Amount of indebtedness for payment of compensation and forfeit.
The court most often makes a positive decision.
Forgiveness insurance: nuances
The victim may demand compensation for the repair of his vehicle. He himself chooses the method of compensation for damage: in cash or in the form of payment for repair work. If both parties to the conflict are to blame for the accident, then the compensation is paid in the same amount.
The procedure for notifying insurance about an accident has changed. If two cars were involved in the accident, the owners of which have OSAGO and there are no injured, each of them turns to his company. In other cases, you need to file an application with the company of the culprit.
The procedure for registration of accidents according to the Euro Protocol has also changed. Each party must notify its company within 5 business days. Otherwise, the culprit will have to pay damages at his own expense. If there is a video or photo of the accident, then the maximum amount of payment in the capital and the Leningrad region will be 400 thousand rubles.
The victim must show his vehicle to the company within 5 days after the accident. At the insurer's request, a third party is to blame. She must also provide the vehicle for inspection within 10 days from the date of receipt of the application. The guilty person is not allowed to dispose of or repair the car within 15 business days, otherwise the insurance penalty for the payment of compulsory motor liability insurance and compensation will not be paid.
The insurer may demand the payment of compensation and forfeit in the pretrial order. If the parties do not agree, then the penalty for compulsory motor third-party liability insurance and compensation will be carried out through the court. Insurers are required to pre-trial all payments. However, in fact, these amounts are less than those that are legally entitled to customers. Therefore, most of these cases are decided through the courts.
Other sanctions
Penalty is another sanction that applies to the insurer in case of violation of the timing of payment of compensation. Its size directly depends on the amount of charges. In case of violation of the terms of payment of compensation, the company must compensate 1% of the amount owed per day of delay. If the company has violated the terms for providing directions for repairs, then it will be necessary to compensate for 0.5% of the debt. With any calculation method, installment payments cannot exceed the premium guaranteed by the contract.
If customers have to file a claim in order to receive compensation, the court’s decision on the mandatory liability insurance contract will be supplemented by a decision on the mandatory payment of a fine. This is the largest monetary compensation for late payment. Untimely transfer of funds to the beneficiary is considered the most serious violation of obligations by the insurer.
Article 16 of the Federal Law "On CTP" provides for a fine for the benefit of an individual for violation of compensation payments. If the application is drawn up by the Consumer Rights Protection Society, then it shall be entitled to half the amount of the penalty. The amount of the fine is 50% of the amount of compensation for the case in question. At the same time, the amounts that were paid voluntarily in a 20-day period, penalties, and other compensations are not taken into account.
One more example
The total amount of payment by court decision is 50 thousand rubles. In the statutory 20-day period, the company paid off only 10 thousand rubles. The interests of the injured party in the case are represented by OZPP.
The amount of the fine = (50 - 10) x 0.5 = 20 thousand p. Of these, 10 thousand are taken by the victim, and the same amount is taken by the OZPP.
Features
The total amount of the sanction may not exceed the maximum amount of payment for the corresponding type of insurance and the damage caused.
If the company has committed several offenses, then sanctions can be requested for each of them.
The court can reduce payments only on the basis of a statement by the defendant and only if the calculated penalties are disproportionate to the consequences of violations.
All sanctions apply to recovering compensation from the PCA.
Fulfillment of the court’s claim for the payment of compensation does not exempt the company from the payment of the penalty.
Underpayment
Almost always, the court understates the calculated amount of the penalty. The exception is cases where the defendant did not appear at the court hearing, and absentee decisions. If the amount of compensation is small, the delay is small, there is a chance that they will not reduce the amount.
Still need to prepare for the trial. For example, write written explanations in which to reflect:
- his disagreement with the application for a reduction in compensation due to the lack of grounds;
- list all the necessary conditions for reducing the payment and separately indicate the items that were not met.
A copy of the written explanations must be attached to the case file. When the court gives the floor for an answer, you need to briefly voice your position, focusing on the most important points.