The official payment period for compulsory motor third party liability insurance by new rules is reduced to 20 working days from the date of application. The changes took effect in 2017. During this time, the insurance must fully deal with the documents provided, assess the damage that the car received in an accident, approve the application for payment and proceed to the payment of compensation. Any unreasonable delay, in accordance with the new legislation, violation of the terms of payments, will cost the insurance companies a lot – from 1% of the total amount of payments for each day of delay.
This is a serious change in the legislation on insurance, the amount of penalties has soared by an order of magnitude compared with the previous 0.11% for each day of delay in payments. The delay of a reasonable refusal to pay will now cost insurance in the amount of 0.5% for each day of delay. Only business days are counted. Ideally, if there are no additional claims and claims settlement, exactly one month later you will receive a fully repaired car at the expense of the insurance company.
Legislation has seriously tightened in relation to delays in payments by insurance companies and now it is unprofitable for them to slow down payments under CTP.
It would seem that there is no reason for concern. But, of course, they are.
Insurance companies are not interested in payments, they tear down and delay the period, they strive to minimize their risks. From an economic point of view, if a CTP insurance fully pays for itself for drivers, it ruins insurance companies or increases the cost of insurance.
The payment of compensation has its own pitfalls. Insurance seriously consider all documents and gladly note any legal inaccuracies to use them as a reason for refusal. Drivers can not use an independent examination prior to inspection by insurance specialists and must strictly adhere to the deadlines. Insurance with great reluctance take old cars and often exclude old models from automatic dialing with electronic insurance.
When assessing damage, insurance company experts can reduce the cost of repairing a car, citing the general wear and tear of parts. It is obvious that insurance companies are not interested in increasing payments. They would be quite satisfied with a formal insurance that does not provide any real guarantees. It is this kind of insurance that they are trying to make an electronic form of insurance. The trust that companies demonstrate when accepting documents without verification has its downside.
Important changes in insurance law
- Insurance legislation, in particular, the Law on OSAGO has been continuously changing since 2014, all new additions are being made. Terms of consideration of the application and payments in the direction of reduction change, possible sums of payments on insurance increase.
- In particular, in 2019 when collecting documents on accidents, it is necessary to provide a copy of the police protocol on accidents and personal data of the participants of the collision, including the numbers of CTP policies. Drivers should be attentive and aware of all new changes and constantly monitor current innovations. Particular attention should be paid to the timing of the provision of documentation.
- Independent examination with the assessment of damage to the car can now be carried out only after the decision of the experts of the insurance company. If you are dissatisfied with the assessment of insurance experts, you are entitled to order additional independent expertise and collect from the insurance documentary proof of the difference in the cost of repairs in court.
- Insurance companies have something to respond to the desire of customers to get more expensive repairs in monetary terms. According to the OSAGO legislation, the insurance company has the right to replace the cash payment of damages for the repair and restoration of the vehicle in one of its partner service centers. This allows the insurance company to save money and avoid money manipulation. It is important to know exactly how the replacement of damaged parts will be performed. Two basic schemes are practiced – replacing any damaged parts with new ones, regardless of the level of depreciation, and replacing old parts with serviceable, but used ones.
The time allotted to the insurance company to repair instead of paying cash compensation also has limitations written in the insurance contract.
Changes in submission deadlines for drivers
According to the new rules, it is necessary to report an accident directly on the day of the accident. You must call the insurance company and notify them of the incident directly from the scene.
The deadline for submission of documents – 5 days, it is desirable to submit documents on the day of the incident or within 3 days after. Do not forget that the consideration of the documentation and the payment period, which the insurer is obliged to make, depends precisely on the day the documentation is submitted. Do not tighten, much less delay on the last day.
An important point. Despite the fact that the car must be provided for inspection by insurance experts within 5 days, it is impossible to proceed to repair within 15 days. Many drivers lose sight of this moment and are extremely surprised if the insurance company asks to re-show the car or decides to repair the damage in one of its auto repair shops. Drivers expecting monetary compensation, in this case, will be seriously disappointed. Follow the letter of the law and do not repair the car until you receive information about insurance payments and compensation.
One of the important innovations is the possibility and widespread distribution of e-insurance CTP. The simplicity of design and the absence of an agent with annoying requirements for connecting additional options and insurance packages provided the electronic insurance with maximum distribution. But there are pitfalls. Now the driver or the person who makes insurance for the car bears all responsibility for the execution of insurance documents and their verification. Errors in registration can lead to a full and reasonable refusal of insurance payment.
One of the largest insurance companies, Ingosstrakh , almost completely switched to electronic design of CTP.
Under the new rules, losing insurance after an accident and insurance compensation has also become easier. If you find violations in the preparation of documents OSAGO, insurance refuses to pay legally.
The most frequent mistakes in registration of insurance that lead to the refusal to pay
- Incorrect, inaccurate indication of the brand of car. Sometimes this is provoked by the insurance company itself, which suggests choosing a similar model on the site. But when you draw up the documents for the payment, it can be a problem.
- Forgery or forged documents about THAT.
- Refusal to include additional drivers in the insurance, trailer. This provides significant savings in the registration of CTP, but in the event of an insured event may be grounds for refusal.
If there are mistakes in the execution of documents, it will be extremely difficult to defend your right to payment in court. The company recognizes the contract as legally void, null and void.
In what cases the insurance has the right to refuse payments
- When applying and the lack of a full package of documents . Recall that according to the new rules, a copy of the police report on an administrative offense and full information about the accident with state license plates of all participants, VIN code, full name and OSAGO policy numbers are required for the vehicle and insurance documents.
- If the driver has not provided a vehicle for inspection by experts of the insurance company within the prescribed five-day period . An independent examination prior to court reviews is not required. The initial damage inspection is performed by the insurance experts.
- In case of problems and incorrect registration of insurance OSAGO . For example, if false documents are provided – a fake TS diagnostic sheet, incorrectly specified car model, user errors during online registration.
- In some cases, the accident is not recognized as an insured event . Payments can not wait if the injured driver was drunk. But the new standards, the number of ppm in the blood above 0.
- Problems with payments may arise and not the fault of the driver . Problems with the policy of the perpetrator of the accident, withdrawal of the insurance license of the company may affect the timing of payments.
Delay in consideration of the insured event and insurance payments is possible when a criminal or administrative case is initiated within the framework of the incident. In this case, the insurance has the right to defer payment until the case is considered in court.
Payments are delayed when it is impossible to determine the person responsible for the accident before the guilty party is identified by a court decision. If there are injured or dead, insurance work may be suspended until clarification. Payments may also be suspended if one of the participants escaped from the accident scene .