The PCA reported that in recent months, the share of compensation for OSAGO damage from repairs has fallen to 0%. Existing legislation gives the car owner the right to demand the restoration of the car instead of paying money. According to the ASN, up to 2022, 11-15% of those injured in accidents preferred to repair a car under OSAGO.
The insurers themselves explain the “zeroing” of the share of repairs due to the shortage of spare parts that would now exist in the Russian market. And they suggest to solve the problem by using auto parts from automatic disassembly to restore auto parts. In fact, there is a much more plausible version of the current situation.
By law, in the event of a CMTPL repair, the insurance company is obliged to hand over the full amount necessary to purchase spare parts and consumables. And when the cash compensation is paid to the victim, insurers have a legal option not to pay the car owner half the price of the components, referring to the “wear and tear” of his car. In such circumstances, insurance companies simply do not contract with car services for the repair of cars covered by OSAGO, as required by law.
And when the car owner tries to choose compensation in the form of repairs, he is told that the insurance company does not have such an opportunity: they say, take the money and do not show off, the citizen is the victim. For this reason, despite the skyrocketing prices for spare parts, insurance companies managed to spend almost the same amount in 2022 on compensation for damage to OSAGO victims as they did in 2021, when car repairs cost much less.
The PCA reported that in recent months, the share of compensation for OSAGO damage from repairs has dropped to 0%. Existing legislation gives the car owner the right to demand the restoration of the car instead of paying money. According to the ASN, up to 2022, 11-15% of those injured in accidents preferred to repair a car under OSAGO.
The insurers themselves explain the “zeroing” of the share of repairs due to the shortage of spare parts that would now exist in the Russian market. And they suggest to solve the problem by using auto parts from automatic disassembly to restore auto parts. In fact, there is a much more plausible version of the current situation.
By law, in the event of a CMTPL repair, the insurance company is obliged to hand over the full amount necessary to purchase spare parts and consumables. And when the cash compensation is paid to the victim, insurers have a legal option not to pay the car owner half the price of the components, referring to the “wear and tear” of his car. In such circumstances, insurance companies simply do not contract with car services for the repair of cars covered by OSAGO, as required by law.
And when the car owner tries to choose compensation in the form of repairs, he is told that the insurance company does not have such an opportunity: they say, take the money and do not show off, the citizen is the victim. For this reason, despite skyrocketing spare parts prices, insurance companies managed to spend almost the same amount in 2022 on compensation for damage to OSAGO victims as they did in 2021, when car repairs cost much less money.
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.