RUSSIA: higher amount of life and health indemnities may lead to 15% increase in MTPL claims

From January to September 2019, the paid claims for life and health in MTPL events amounted to 5% of all the segment's paid claims, ASN reports.

According to Evgeniy UFIMTSEV, Executive director, the Russian Association of Motor Insurers (RAMI), an increase of 400% in insurance compensations for life and health damage, within the framework of the bill on MTPL tariff liberalization and individualization, will lead to an increase of MTPL paid claims by 15%.

The bill also provides for cancellation of the territorial ratio and the vehicle power ratio components, which today make an average of 1.28 and 1.25 respectively on the market. The bill allows for the development of individual tariffs as economic incentives, determining drivers to comply with traffic rules and use of telematic devices in vehicles, helping to establish a more accurate and fair MTPL policy prices, based on driving behavior. However, the law does not oblige vehicle owners to install such devices, UFIMTSEV added.

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