All vehicle owners, on the basis of the Law on Compulsory Insurance, are obligated to insure vehicles, i.e. draw up a policy for compulsory motor liability insurance The Government of the Russian Federation approved OSAGO tariffs. There is a basic tariff and many factors that are used in calculating the price of the policy. We will not explain the meaning of all coefficients.
So, KBM - what is it? The bottom line is that if a driver drives on roads without an accident, then he deserves the benefits of an insurance contract. At the same time, using this coefficient, the cost of the policy can be increased. This will happen if the driver becomes the offender guilty of a traffic accident.
Subtleties of the Bonus Malus coefficient
In order to better understand the meaning, the driver needs to know the following: The driver’s KBM does not become attached to your vehicle.
For example, you decide to sell a car and buy a new one. Bonus Malus will remain until you conclude a new MTPL agreement. They sold the car in June, and in July they bought a new one. The policy is valid until the end of the year. At the end of the year, when you draw up the contract, you will pay less. However, you would like to purchase a policy in July when buying a new car. Under such conditions, you will not receive a discount.
By the way, learning KBM is quite simple. To do this, use the PCA database.
If you traveled for several years without violating the rules of the road, saved up a discount, and did not apply for mandatory motor third-party liability insurance in the next year, the value of your coefficient will be stored in the database for another year, after which all your bonuses will be reset.
KBM and policyholder class
When it comes to the driver’s KBM, insurance agents use the definition of “Insured Class”. Below are the values ​​of the CBM and the class of the policyholder for the first time drivers (these values ​​should be taken as a reference point when analyzing the table below):
- MSC - 1.
- Policyholder class - 3.
Suppose that during the year you never got into an accident, so in a year of trouble-free driving you will receive a decrease of 0.5 points.
For example, you are a novice driver, when applying for a policy for the first time you are assigned an Insurer Class 3, which corresponds to the Bonus-Malus Ratio 1 (it does not actually affect the basic cost of insurance). During the second year of driving, the driver became a member of the accident. The class of the insurer will decrease to the second, and the price of the policy will increase by 40%, i.e. the ratio will be 1.4.
Provided that the driver has trouble-free riding during the next insurance period, he will be able to return his 3rd class and the cost of the policy will decrease.
Under what conditions does CBM OSAGO grow?
Imagine that you drove on the road for several years without an accident, so you have a discount. However, this year you become a participant in an accident and as a result lose all your bonuses. Such an outcome can be if the victim in an accident will contact your insurance company and demand damages. But! If you solve the issue together with the victim on the spot, then the discounts will remain with you.
Also keep in mind that the discount is not taken into account for those citizens who are registered in another state. Among other things, it is not taken into account when insuring trailers.
How is the cost of the policy calculated if several drivers are indicated in it?
If several drivers are included in the MTPL policy, then when determining its value, the largest Bonus Malus is taken into account.
For example, three people are included in the policy. For two drivers, it is 0.8, and for the third - 0.9. The policy will be calculated from 0.9, the discount will be only 10%. If this year one of the drivers makes an accident, then the value of the coefficient will increase only for the driver-intruder, and for the rest the figure will decrease by 5%.
The cost of the MTPL policy mainly depends on the quality of the ride, and the main indicator of quality is the Bonus Malus. Therefore, answering the question “MSC - what is this?”, It is worth saying that this is precisely a measurable reflection of a person’s driving skills. You follow the rules of the road and, as a result, you have a low coefficient, and therefore big discounts when concluding an insurance contract.
Some drivers are insured under compulsory motor liability insurance for 6–9 months. When calculating the value of such an agreement, the Bonus-Malus equal to one is taken for calculation. When extending the duration of the policy, the value is maintained regardless of the company where the policy is issued.
Basic conditions for the use of KBM
So, KBM - what is it? How is it calculated in various situations?
OSAGO policies are divided into two types, each of which has its own characteristics.
- Limited type of insurance. In this type of insurance, the peculiarity is that restrictions are introduced in the number of drivers eligible to use this vehicle. MSC will be calculated for each driver separately.
- Unlimited type of insurance. Under such insurance conditions, the number of drivers authorized to drive a car is unlimited. The class of the insured and the value of the Bonus Malus are determined only for the car owner and provided that the previous contract was of the same type, i.e. unlimited. If changes in the source data for the driver and for the car are detected, then when calculating the cost of the policy, the value of the CTP MTPL equal to 1 will be taken into account.
However, there are rules that apply to both agreements:
- If you terminate the agreement with the company ahead of schedule, at your initiative, the discount on the value of the contract will not be valid for the period of time that is interrupted. This is explained by the fact that the validity period of the contract is one year, therefore KBM is calculated on the basis of these conditions. All insured events that occurred in less than a year will not include bonuses. When calculating, those values ​​of the coefficients that were in effect at the time of the conclusion of the previous contract will be taken.
- One insured event - one insurance claim. The Bonus-Malus coefficient is considered from each payment separately, no matter how many people received the insurance payment.
In which case can the KBM be increased?
If the driver is listed in several policies, one of which has a “bad” history, then the coefficient value can be increased. In addition, the case of acquiring a fake OSAGO policy may affect the increase in the CBM.
The value of the Bonus-Malus for each insured is in the database of the Russian Union of Auto Insurers (RSA) or in the company where you executed the insurance contract. To find out which PCA you have on the basis of PCA, you need to contact the insurance company where you registered the policy.
How can MSC be reduced?
The calculation of the cost of the MTPL policy takes place according to a simple scheme - the base price is taken and multiplied by KBM. To reduce the Bonus-Malus ratio, you must follow these simple rules:
- Be careful on the road, ride without an accident.
- To introduce drivers who have earned your trust in your motor third-party liability insurance policy have a positive driving experience and you are confident in their professionalism.
What to do if you are not sure of the correct calculation of the KBM?
First you need to conclude an insurance contract with the MSC, which the insurer gives you, but which you question. Checking the KBM in the database does not take much time.
Next, you need to contact the Union of Insurers with a complaint about the illegal determination of MSC. To do this, you must prepare a number of documents:
- Statement.
- Copies of driver's licenses that are included in the policy.
- Copy of the previous insurance contract.
- Copy of current insurance contract.
If as a result of the consideration of the complaint, your question is resolved positively, you have the right to conclude a new insurance contract with a refund of the overpaid amount.
Summarize. MSC - what is it? In fact, this is an indicator of a person’s driving quality, thanks to which insurance companies can either make a good discount when composing a CTP policy (if you went without an accident during the insurance period), or vice versa, increase the price of insurance (if you had an accident). Of course, the most profitable insurance for an experienced driver with a trouble-free ride.
Remember that this coefficient is not assigned to the car, but to the driver and is stored in the PCA database for a year. You can learn KBM from the insurer from whom you are drawing up the contract.