MTPL is compulsory insurance. All citizens of the Russian Federation who drive any vehicles in the territory of our country are obliged to purchase a motor third-party liability insurance policy. The absence of a compulsory motor third party liability insurance policy entails a fine.
Unlike CASCO, payments under these policies are made only to persons recognized as victims of an accident. Compensation is paid in cash and after the examination.
Legislative regulation
The main document that governs the relationship between the insurance company and the owner of the vehicle, which is its client, is the CTP Rules. They contain the most complete information about the conclusion, termination, as well as the extension of the insurance policy.
It is the OSAGO rules that govern the list of documents that an insurer may require to arrange insurance. Usually this is a passport, driver’s license and car documents. In 2013, changes were made to insurance rules: OSAGO is now issued only upon presentation of a coupon for technical inspection of the car.
In addition, the specified legislative act regulates the period for which you can issue a policy for compulsory motor liability insurance. The rules establish that an insurance contract can be concluded for at least three months. After this period, the policy can be extended, but no more than two times. The maximum possible duration of the insurance contract is one year.
By issuing an insurance policy in the same insurance company, the driver can get a discount in the absence of accidents. Earlier, having easily changed the insurer, the driver could hide the facts of his participation in the accident. However, the new OSAGO rules set limits on this situation. Now a single database of insured persons is being maintained, thanks to which insurance companies can easily check any car owner for trouble-free.
From January 1, all such firms are obliged to transfer data on concluded MTPL agreements to a single system. Now the insurance premium is calculated only after contacting such a resource. This means that insurers are obliged to provide not only discounts for accident-free riding, but also make premiums in case of accidents, the culprit of which was the insured.
It is also useful to know that when selling a car before the expiration of the CTP policy, the driver has the right to terminate the contract. In this case, the insurance company is obliged to return part of the paid insurance amount.
An interesting fact is that since this year, when repeatedly concluding an insurance contract with the same insurer, there is no need to provide original documents.
It is important to understand that OSAGO rules, along with traffic rules, should be studied by all drivers. Knowledge of this document will help to behave correctly with the insurance company in the event of the need for compensation.