RUSSIA: combined MTPL and Motor Hull policy for convenience and insurance cost decrease

On September 4 the Bank of Russia published a draft regulation on the minimum requirements for combined MTPL and Motor Hull insurance products, which allows the addition of Motor Hull clauses directly into the MTPL policy without making a separate contract, ASN reports.

The term of Motor Hull insurance under "combined" policies must be the same as MTPL validity. The combined policy will provide insurance coverage against the risks of loss or damage to vehicles.

According to the regulator, these changes will make conclusion of insurance contracts more convenient for policyholders and insurers. This change was proposed in April this year to the Prime Minister Dmitry MEDVEDEV in order to reduce insurance costs by combining policies. "The document was prepared after consultations with the Ministry of Finance of Russia as part of execution the order of the Chairman of the Government of the Russian Federation, Dmitry MEDVEDEV, on possibility of combining Motor Hull and MTPL in one product", the regulator said.

MTPL reform will be discussed at the Forum of insurance market leaders (on October 31) with the participation of representatives from the Bank of Russia, the financial ombudsman service, FAS, ARIA, as well as owners and top managers of insurance companies.

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