MTPL - Compulsory Auto Civil Liability Insurance Contract. Policyholder - a person who owns a car (in rare cases, a person who draws up insurance). An insurer is a representative of an insurance company. What is CTP, not everyone knows, and even among motorists there are people who have no idea what liability insurance is. What is a driver entitled to when a traffic accident occurs? What are the consequences of riding without insurance? Is it so necessary and necessary? Let's try to figure it out.
CTP: what are we insuring?
Since OSAGO is compulsory insurance, it is necessary to find out what is actually insured. The life of the driver or the condition of his car? In fact, at the conclusion of the contract, the car owner protects his own money, contributes to their preservation in the event of an accident. That is, in case of an unpleasant situation on the road that caused damage to another car (even if it is a simple scratch, not to mention large dents) or damage to health, it will not be the owner of the car who will indemnify the damage, but the insurance company with which he concluded an agreement .
The same applies to the exact opposite situation, when the owner is not the culprit of the accident, but the victim. In this case, the victim will be paid the insurance company responsible for the accident. Of course, if he has a policy. What is the insurance policy? This is the contract concluded between the owner and the company.
There is also a situation where two drivers are to blame for the accident. In this case, both will have a long trial, during which the amount of damage will be made, based on the degree of liability of motorists.
Do not forget that we are talking about owners who have in their hands a valid insurance policy.
Cost of CTP
We already know what OSAGO is, now we need to find out how much you will have to pay for insurance. In fact, the amount is quite decent, but it is worth remembering that the contract is concluded for a whole year. A year of quiet driving is a lot. What determines the cost of a compulsory car insurance policy?
First, when calculating, the base rate, which is set in accordance with Bank of Russia tariffs, is taken into account. In October 2014, insurance companies were given the right to independently establish the final base rate, so the cost of insurance in different companies may vary slightly.
Secondly, the CBM (scary word) affects the cost of the policy. What is KBM in OSAGO, we will talk in detail a little later, for now, we will give its literal translation. MSC is a bonus malus class. Determines the size of a possible discount.
Thirdly, when calculating the cost of OSAGO, the car power factor is taken. The more horsepower, the more expensive the insurance will cost.
The fourth indicator depends on the territory in which the owner of the car is registered, that is, the territory of predominant use of the vehicle. For example, in the Moscow region the coefficient is 1.7, while in Sevastopol it’s only 0.6. This coefficient is set in accordance with OSAGO Law.
The following ratio depends on the age and length of service of the driver. If the age is less than 22 years or the driving experience of a vehicle is less than three years, then a raising factor will apply, in the range of 1.6-1.8.
Also, the period of use affects the cost of the policy. The minimum period for which you can insure a car is 3 months. The maximum, of course, is one year.
The last factor that is taken into account when calculating the cost of compulsory motor liability insurance is the number of persons inscribed in insurance. Or the insurance is issued without restriction, and then everyone who has the right to drive the car can drive it, regardless of whether it is indicated in the insurance policy or not. Or, drivers entered in the insurance policy can drive the car. In this case, the cost of OSAGO is determined at the lowest discount, which is determined by the KBM.
What is KBM in CTP?
The bonus malus class depends on driving experience and the presence or absence of insurance payments. For each year of accident-free driving, the driver is given a 5% discount. The discount is given regardless of the desire of insurers, as many drivers think. There is a single database where you can see your class. The discount is accumulated during the entire period of driving and is not tied to a specific car, as it was before.
The maximum discount when applying for an MTPL policy is 50%. In order to get it, you must have 10 years of trouble-free driving.
The KBM and the insured class are not the same thing, although the concepts are the same. When applying for the first insurance, the policyholder is awarded the 3rd class, and the KBM is 1. In the future, for each year the class increases by 1, and the KBM, on the contrary, decreases by 0.5. Here is what a class in CTP.
CTP payments
Now that we have not only a superficial idea of what OSAGO is, but also know what we are insured against, we can talk about how the amount of insurance payments is calculated.
We will analyze two situations: when the policyholder is the culprit of a traffic accident and when the policyholder is the injured party.
You are the culprit of an accident
Have you become the culprit of the accident? The situation is unpleasant, but not fatal. You must have a valid OSAGO policy in your hands. The victim contacts you with the insurance company in which the contract of compulsory motor third party liability insurance was concluded. After assessing the damage, the insurance company instead of you pays the amount needed to repair the car.
The only thing that can upset you is that you repair your car at the expense of your own money.
You are not the culprit of the accident
If you are "driven in", knocked, in general, caused damage to your car, then you need to contact the insurance company in which the perpetrator is insured, and she will pay you for the car repair. Of course, you yourself cannot name the amount needed for repairs. This is done by payout specialists. They estimate the amount of damage based on the following factors:
- Car wear. It is determined taking into account the mileage and year of manufacture of your car. The older the car, the more wear and tear and the smaller the payout amount.
- Real damage.
According to the new law adopted in April 2015, the maximum OSAGO payment is 500 thousand. But if the amount of damage caused to you is much larger, then in court you can recover the remaining amount from the culprit of the accident.
Penalties for driving a car without an insurance policy
There are several types of fines - for driving without a policy, for a forgotten policy, for driving in a period not covered by the insurance policy, and also for driving a vehicle by a person not indicated in the insurance. The amount of the fine is also different. Its size ranges from 500 to 800 rubles. But those who already know what insurance is, will insure mandatory insurance, as this helps to avoid unpleasant conversations with the traffic police.
The insurance company fell apart, how and where to make a payment?
It so happens that you issued a policy for a year in a company that has successfully proved itself in the insurance market. But the unexpected happened, six months later you became a participant in an accident and you needed a payment, but the company is no longer there. What to do? In this case, you need to apply either to the RSA (Russian Union of Auto Insurers) or to the court. There you will be prompted a solution in the current situation.
CASCO: just about complicated
CASCO is also insurance, but, unlike CTP, it is voluntary. Such an agreement is many times more expensive, but it protects your car from almost everything (except for damage caused during natural disasters). Are you the culprit of the accident, but do you have a hull? No problem - the insurance company will pay you for the repair. Your car was scratched or neighbors took off the wheels - this case is also paid for by insurance. That is, now your car is under the full protection of the insurance company.
But not only the amount of insurance is horrifying, your car may simply refuse to insure because of its year of manufacture or lack of protection. Each insurance company calculates the CASCO cost independently, there is no law that would regulate or limit the cost of this insurance.
Now you have complete information about what is CTP and CASCO. We hope it was understandable and useful for you.
Now that we have stipulated every detail, every moment that theoretically can arise in the process of driving, when you know what OSAGO is for a car, you have the right to be called the responsible owner of the car, and not just a car enthusiast.
