The Central Bank will adjust prices for MTPL policies in the short term
- November 15, 2023
- 0
The Bank of Russia plans to establish new pricing rules for MTPL policies for up to three months. Insurers are forced to apply a reduction factor for the
The Bank of Russia plans to establish new pricing rules for MTPL policies for up to three months. Insurers are forced to apply a reduction factor for the term of the contract. The changes should enter into force in March 2024.
As Kommersant reports with reference to the Central Bank’s draft instructions, the cost of mandatory motorcycle liability insurance with a validity period of one day to three months cannot exceed the price of annual insurance. When making calculations, insurers will be obliged to use a reduction factor, but the regulator does not limit its value: companies determine this themselves, depending on the situation and the characteristics of the driver. The law on a new type of policy will come into effect on March 2, 2024.
Meanwhile, prices of ‘short’ policies will be influenced by driver experience and age, break-even ratio, territorial coefficient and vehicle power. According to the Bank of Russia, passenger car drivers will have issued 488,000 three-month policies in 2022.
As Kommersant reports with reference to the Central Bank’s draft instructions, the cost of mandatory motorcycle liability insurance with a validity period of one day to three months cannot exceed the price of annual insurance. When making calculations, insurers will be obliged to use a reduction factor, but the regulator does not limit its value: companies determine this themselves, depending on the situation and the characteristics of the driver. The law on a new type of policy will come into effect on March 2, 2024.
Meanwhile, prices of ‘short’ policies will be influenced by driver experience and age, break-even ratio, territorial coefficient and vehicle power. According to the Bank of Russia, passenger car drivers will have issued 488,000 three-month policies in 2022.
Source: Avto Vzglyad
Donald Salinas is an experienced automobile journalist and writer for Div Bracket. He brings his readers the latest news and developments from the world of automobiles, offering a unique and knowledgeable perspective on the latest trends and innovations in the automotive industry.
