The purpose of the draft law is to improve the protection of the rights of aggrieved parties to compensate for damage to their lives, health or property by a motor vehicle driven by a third party. It also aims to clarify the powers granted to an insurance control body for issuing instructions to insurance entities and for eliminating excessive administrative leverage in licensing insurance activity.
The draft law includes the following measures:
- to gradually increase the range of insurance payments for damage to life and health from 160,000 to 500,000 roubles to each aggrieved party; from 120,000 to 400,000 roubles to each aggrieved party for damage to property;
- to extend the list of parties entitled to compensation for the death of an aggrieved party;
- to accelerate insurance payments for damage caused to the health of an aggrieved party by granting the party the right to an insurance payment, provided the injury was documented;
- to provide an aggrieved party with the choice of compensation, including either an order issued for repair (a document confirming the obligation of the insurer to compensate the repair of a vehicle) or actual payment;
- to clarify the procedure for drivers if documents related to a car accident are drafted without the participation of authorised police officers; to increase the maximum insurance payment from 25,000 to 50,000 roubles; to define the terms for an insurable event notification, vehicle examination and/or independent vehicle examination, and for provision of vehicles by the aggrieved party for such examination;
- to pay up to 400,000 roubles in compensation for damage caused to a vehicle in Moscow, St Petersburg, the Moscow Region and the Leningrad Region if the documents related to a car accident were drafted without the participation of authorised police officers, given that photographic or video evidence from the car accident site was provided to the insurer;
- to clarify the insurance rate setting, including the Green Card international insurance system, by setting minimum and maximum insurance rates;
- to outline legal support for overseeing the calculation of an insurance premium under the compulsory motor insurance agreement, as well as compliance with the insurance payment procedures to protect the rights of aggrieved parties should they apply to the federal executive bodies dealing with insurance operations;
- to govern cases in which two or more parties in an accident caused damage to the aggrieved party;
- to clarify the regulations regarding the right to claim, the transfer of the right to claim (subrogation), the enforcement of the right, and to classify the grounds for a recourse claim as being or not being grounds for refusal in an insurance indemnity;
- to specify a list of documents that potential insurers must provide with their licence applications, and to exclude insurance regulations and other mandatory documents in accordance with a federal law.
The draft law has been approved by the Government Commission on Law Drafting for further consideration at a Government meeting.