OSAGdili: the Ministry of Finance criticized new initiatives on car insurance

The Ministry of Finance has considered the submitted initiatives to introduce compensation for damage if the perpetrator of an accident does not have a CMTPL insurance policy, as well as to increase payment limits, and has issued a negative opinion. The Russian Union of Motor Insurers (RUA) supported the opinion of the Ministry of Finance. What will change in car insurance in 2025 - read in the material "Izvestia".

Abrupt steps are not necessary

According to the Ministry of Finance, this decision would increase the burden on the financial reserves of insurance companies, and conscientious car owners would face another increase in tariffs for CMTPL insurance by 10%. RAMI supported the Finance Ministry's opinion on the proposed initiatives, as otherwise they could have a negative impact on the insurance market.

Most of the experts interviewed insist that the Ministry of Finance's negative opinion can be seen as a measure to support the industry.

According to Igor Ivanov, vice-president of RESO-Guarantia, any drastic steps in the direction of changing the terms and conditions of CMTPL insurance are fraught with unbalancing the work of the system, which all interested parties, including the market regulator, insurers and state authorities, have been building for more than 20 years.

According to the representative of T-Insurance, in this case the Ministry is neither a supporter nor an opponent of the industry.

"The Ministry of Finance has outlined a rational position, with which we agree: an increase in the volume of insurance coverage cannot be realized without changing tariff corridors. We recognize that the current limits are outdated and need to be revised, but the expansion of coverage must occur in parallel with changes in the tariff structure," the T-Insurance press office said.

"There is no justice in the fact that those who bought and are buying MTPL policies in good faith are forming a reserve fund out of their own pockets. It is impossible to even estimate how much the price of the policy will rise, because if the law is passed, Pandora's box will be opened. Some citizens will understand the innovation in such a way that it is possible not to buy a policy - "they will pay anyway", and they will more often refuse to comply with the requirements of the law," Igor Ivanov said.

In the interests of the industry

VSK Insurance Company highly appreciated the negative opinion of the Ministry of Finance on the initiatives under discussion. "The increase of insurance amounts at unchanged tariffs could significantly affect the financial situation of insurers," says Irina Ruina, VSK's press secretary.

The bill, among other things, provided for the exclusion of taking into account the depreciation of parts when making payments on MTPL, but was rejected under pressure from a powerful insurance lobby, protecting primarily the interests of insurers, not car owners, says Yaroslav Kabakov, strategy director of Finam Investment Company.

According to Alexei Bredikhin, director of the group of ratings of financial institutions of ACRA, the main reason for the negative attitude of insurance companies to these bills is that they propose the expansion of insurance coverage without changing the tariffs for CMTPL insurance. "In other words, the increase in payouts will come at the expense of insurance companies' profits. This approach deviates significantly from the original logic of the legislation on CMTPL insurance, which assumes a fixed tariff rate structure, i.e. the expected share of policy payouts in the total insurance premium should remain unchanged," the expert expressed his opinion.

Thus, he summarized, we can say that the Ministry of Finance supported insurance organizations, pointing out the risks of reducing the profitability of MTPL insurance, which could lead to a reduction in the availability of this type of insurance for citizens.

He emphasized that the Bank of Russia has largely left the base tariffs unchanged except for the expansion of the tariff corridor for certain types of vehicles, but this alone cannot significantly affect the market.

The Finance Ministry's decision to suppress the new initiatives reflects a trend in which the interests of citizens remain in the background despite the obvious problems they face, Yaroslav Kabakov assesses the Finance Ministry's decision.

"As a result of the ministry's negative opinion, which actually supports the insurance industry, car owners continue to experience difficulties related to the high cost of policies and limited insurance coverage. As payouts continue to take into account the wear and tear of parts, citizens face insufficient compensation for losses," he told the publication.

Market trends

According to the experts interviewed, the MTPL system underwent significant changes in 2025. "In particular, the cost of policies has increased by 36%, which is explained by inflation, an increase in the cost of spare parts and repairs, as well as an increase in the number of road accidents," Yaroslav Kabakov listed.

Hence the alarming trend: the MTPL market will continue to adapt to economic conditions, but mainly in the interests of insurance companies seeking to maintain profits. "At the same time," he notes, "Russian citizens remain without proper attention to their needs in the field of insurance.

In ACRA at the end of 2025, they expect an increase in sales of CMTPL insurance policies and a corresponding increase in insurance premiums of about 10%.

The representative of the company "T-Insurance" expects the movement of the MTPL market towards greater liberalization of tariffs, while maintaining a balance between the interests of customers and insurance companies. "For example, toughening of penalties for driving a vehicle without a valid MTPL policy should contribute to an increase in insurance sales. This may lead to some reduction of tariffs for conscientious customers and will increase the level of protection of drivers on the roads," he told the publication.

Key changes

In 2025, a number of laws will come into force in relation to car owners. RAMI notes the introduction of updated coefficients for calculating insurance rates.

"Thus, from January 27, 2025, the corridors of prime rates for motorcycles, public transport and "light" trucks were expanded, the coefficient for an unlimited list of drivers for individuals increased, in a number of regions the values of the territorial coefficient were adjusted. And from April 17, 2025 for motorcycle owners will change the values of the coefficient of age-stage, as well as the introduction of the motorcycle power coefficient," - told the publication in the RAMI.

Since the beginning of the year, digitalization comes massively to the insurance industry. All insurers are now obliged to provide online loss adjustment services (apps or web versions of websites), which will eliminate the need to visit the company's office in person.

From March 1, MTPL insurance will no longer be needed to register a car with the traffic police. This is relevant for those who have purchased a car, but do not yet plan to use it.

"Nevertheless, on the road, all cars must have at least a MTPL policy. For this purpose, a mechanism has been created that will allow you to safely and legally transport the car to its new owner - a temporary policy, which can be issued even for a day. The cost is about 1000 rubles, the service is available online. If a single fine is less than this amount, then for a repeated offense fines are more serious - from 3 to 5 thousand rubles", - says the managing partner of the analytical agency "VMT Consult" Ekaterina Kosareva.

According to her, there will be no chance to avoid responsibility for driving without MTPL insurance with the introduction of photofixation of violations by cameras. According to "Compare" company, there are 10-15% of such cars on the roads. The experiment will be launched from March 1, 2025. "At the same time, the list of items for which the traffic police can refuse registration has been expanded. For example, non-payment of the utilization fee," the analyst added.

Also from March 1, it will be possible to immediately remove the vehicle after receiving a statement of theft. Thus, the owner will be released from possible liability for the misuse of the car.

And in April a unified system of MTPL insurance, which will work in Russia and Belarus, will start. The extended policy will cost the motorist 3 thousand rubles more expensive on average than the standard one. However, this innovation will also require appropriate regulation to eliminate contradictions, says Alexander Kraynik, general director of the financial marketplace "Compare".

"In Russia, the payment of health damage does not exceed 500 thousand rubles. And in the Republic of Belarus - 10 thousand euros, or almost 1 million rubles. That is, the current Russian limits are clearly outdated and require revision," the expert believes.