By Tory Vance
Today vehicle proprietors in Russia are facing a unique and absurd problem, massively. It frequently occurs that proprietors cannot obtain a coverage for his or her cars due to the lack of blank contract forms, as insurance companies’ managers are letting them know. Such cases were completely unknown just 3 years ago. Russian lawyers community is investigating this problematic situation which affects the development of Russian vehicle insurance segment.
Such shortages of blank forms are often occurring in situation the first is looking to get the absolute minimum compulsory third-party insurance (or OSAGO) contract. What exactly might cause the so-known as ‘shortage’ of blank forms for a renters insurance policy contract? It seems that it’s not the responsibility of insurance companies’ printers this is because the avarice of insurance providers that have created a peculiar ‘marketing scheme’. They’re benefiting from the issues of vehicle proprietors who’re obliged to acquire this insurance based on the law.
So, the lack of blank types of OSAGO insurance contracts has been produced in purpose. Insurance providers take this task to be able to boost sales of other their services and products. Particularly, whenever a customer involves an insurer wishing to obtain an OSAGO contract, they’re then suggested to sign a existence, health or property insurance contract too. As well as in situation the client refuses out of this additional service, company’s managers say there are no blank forms for OSAGO contracts. The client cannot verify this statement obviously and it has with the idea to agree getting this extra insurance service or simply leave.
Essentially, in this situation vehicle proprietors can complain towards the Federal Anti-Monopoly Service of Russia, the Central Bank of Russia in order to the Russian Association of Motor Insurers. But practice implies that such complaints don’t help: the only real result you will get is really a formal report from the controller a good inspection which was produced in the organization contributing to the possible lack of law breaches within this company’s actions. Consequently individuals are embracing insurance lawyers in Russia increasingly more frequently.
Still, there’s a choice. Actually, the service of car insurance (including OSAGO contracts) is really a public agreement based on the Article #426 from the Civil Code of Spain and for that reason an insurer doesn’t have the right to refuse this particular service to some customer. It doesn’t possess a to pressure someone to acquire extra services prior to an OSAGO contract too.
In situation you’ve faced this kind of illegal refusal from corporate insurance manager, you have to write lower a proper request to sign an OSAGO contract in writing. You need to attach copies of necessary documents into it, provide your telephone number and register it within the insurance company’s branch office (ensuring it’s sealed). Most most likely, in this situation tomorrow they’ll phone you and offer come back for their office to sign the insurance coverage contract without persuading you to definitely accept any other conditions.
Now let’s investigate situation with Russian insurance providers refusing to sign 3rd party liability (usually shortened as KASKO) contracts.
Russian insurance providers are getting certain problems within this sphere themselves. Central offices are cancelling KASKO services in regional branch offices due to drastic development of customer fraud which economic security services of branch offices are neglecting to mitigate.
This is because the amount of insurance fraud ‘business’ schemes including obtaining an insurance coverage agreement for an costly vehicle after which doing purposeful harm to it (for example cutting the upholstery, making scratches or fissures around the glass) is continuing to grow several occasions over the past 2 yrs. Thus, a vehicle owner will get the compensation in the insurer that is calculated based on official vehicle dealers’ prices for repair parts. Simultaneously, the broken vehicle could be really repaired in a usual low-cost repair center.
Flaws in Russian insurance legislation lead to such fraud schemes being very lucrative for individuals that like this sort of ‘business’. Based on information received by Russian lawyers throughout their professional activities, such schemes are actually more and more utilized by people who weren’t involved with fraud schemes earlier.
