Vehicle Insurance coverage Fraud within Russia Impacts Both Insurance providers and Their own Customers

Today vehicle owners within Russia tend to be facing a silly and absurd problem, enormously. It frequently occurs which owners can’t obtain an insurance policy for their own cars due to the shortage associated with blank agreement forms, because insurance companies’ supervisors are informing them. Such instances were totally unknown just 3 years ago. Euro lawyers neighborhood is looking into this challenging situation that affects the actual growth associated with Russian automobile insurance section.

Such shortages associated with blank forms are often occurring just in case one is looking to get a minimal compulsory third-party legal responsibility insurance (or even OSAGO) agreement. So what might lead to the so-called ‘shortage’ associated with blank types for this kind of insurance agreement? It appears that it’s not the actual fault associated with insurance companies’ ink jet printers; the reason may be the greed of insurance providers which allow us a unusual ‘marketing scheme’. They are benefiting from the difficulties of vehicle owners who’re obliged to acquire this insurance based on the law.

Therefore, the lack of blank types of OSAGO insurance coverage contracts has been created within purpose. Insurance businesses are taking this task to be able to boost product sales of additional their services and products. Particularly, whenever a customer involves an insurance provider wishing to obtain an OSAGO agreement, he or she’s then suggested to indication a existence, health or even property insurance coverage contract too. And just in case the client refuses out of this additional support, company’s supervisors say that we now have no empty forms with regard to OSAGO agreements. The client cannot confirm this statement obviously and offers either in order to agree obtaining this additional insurance service or simply leave.

Essentially, in this type of situation vehicle owners may complain towards the Federal Anti-Monopoly Support of Spain, the Main Bank associated with Russia in order to the Euro Association associated with Motor Insurance companies. But practice implies that such complaints don’t help a lot: the just result you will get is the formal report from the controller regarding an inspection which was made within the company as well as about the possible lack of law breaches with this company’s measures. Consequently individuals are turning in order to insurance attorneys in Russia more often.

Still, there’s an choice. In truth, the support of automobile insurance (such as OSAGO agreements) is really a public agreement based on the Article #426 from the Civil Signal of Euro Federation and for that reason an insurance provider doesn’t have a to refuse this particular service to some customer. It doesn’t have the right to force an individual to obtain extra services just before getting a good OSAGO contract too.

In case you’ve faced this illegal refusal through corporate insurance coverage manager, you have to write lower a official request in order to sign a good OSAGO contract in writing. You ought to attach copies of necessary documents into it, provide your telephone number and sign-up it within the insurance corporation’s branch workplace (ensuring it is actually sealed). Most likely, in this type of case tomorrow they’ll call a person and propose in the future again for their office in order to sign the actual insurance agreement without persuading you to definitely accept any kind of extra problems.

Now let’s investigate the problem with Russian insurance providers refusing in order to sign 3rd party liability (generally shortened because KASKO) agreements.

Russian insurance providers are getting certain problems with this sphere on their own. Central workplaces are cancelling KASKO providers in local branch offices due to drastic development of client fraud that economic protection services associated with branch workplaces are faltering to offset.

The cause is that the amount of insurance scams ‘business’ schemes including acquiring a good insurance contract to have an expensive car after which doing purposeful harm to it (for example cutting the actual upholstery, making scrapes or fissures about the glass) is continuing to grow several times over the last two many years. Thus, an automobile owner can have the compensation in the insurer that is calculated based on official vehicle dealers’ costs for restore parts. Simultaneously, the broken car will be actually repaired in a usual low-cost repair center.

Flaws within Russian insurance coverage legislation lead to such scams schemes becoming very profitable for individuals who choose this sort of ‘business’. Based on information obtained by Euro lawyers throughout their professional actions, such schemes are actually increasingly utilized by people have been not involved with fraud strategies earlier.

Economic protection departments of insurance providers cannot successfully counter this kind of fraud efforts because they don’t have any kind of legal way to perform heavy investigations. All they are able to do would be to recommend neglecting such statements. But occasionally it makes the problem even worse to have an insurer whenever a car proprietor whose declare was declined wins this particular case inside a court as well as receives the sum a great deal larger than had been claimed at first.

The rising wave associated with such created insurance statements in Spain has advised many insurance providers to cease providing the actual service associated with KASKO insurance as well as to stop the Euro insurance market whatsoever. The major a part of Russian-based insurance providers used to achieve the vehicle insurance coverage services because their primary income source and didn’t completely realize the number of risks exist in this particular niche; so now these firms are having difficulty.

So here’s an guidance for vehicle owners willing to obtain a vehicle insurance coverage contract within Russia through Russian insurance coverage lawyers. It is best to be careful when selecting an insurance carrier: in case of the company’s bankruptcy you’d not have the ability to claim your own payment by way of the Euro Association associated with Motor Insurance companies as this particular organization may only assistance to compensate deficits by OSAGO agreements. Therefore, you’d have register like a creditor within the formal personal bankruptcy procedure, and also the more lenders there will be, the smaller likelihood of getting a few compensation you’d have.

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