Payments for insurance money: how to get?
Here’s how to get a refund on the insurance money instead of repair of the vehicle.
There is probably no more crucial topic among motorists than compulsory liability insurance, a market which our government can’t Fess up to for more than 20 years. As soon as the authorities tried to stabilize the insurance market, insurance, went, in the words Chernomydin, “wanted as better, and it turned out as always”. I have the feeling that the authorities are increasingly only think about insurance companies, completely forgetting about the people annually are forced to spend their money on insurance policies that have long been turned into a hidden tax on motorists.
And the worst part is, of course, not an increase of rates, ratios and conversion rate of bonus-Malus, and even a special understating of the insurance companies the amount of damages when the insured event. Rates can always be used. But what did the authorities a few years ago to allow insurance companies in most cases, not to pay monetary damages, replacing the natural payment of compensation (repair vehicle), in any gate climbs.
Recall that in 2017, the State Duma adopted the Federal law FZ-49 “On amendments to the Federal law on compulsory insurance of civil liability of vehicle owners”, who established in Russia the priority of repair of the car over a cash alternative in the event of damage in an accident.
So now the insurance company is entitled not to pay monetary compensation to the injured party, sending the car for repair at the technology center, which the insurance company contracted.
As a result, many drivers since then are unable to get the accident of cash payments, receiving compensation in kind. Unfortunately, such practice, as expected, has more minuses than pluses. Many drivers are unhappy with the new Law “About insurance”. After all, before people can receive cash compensation and to use the money in order to choose the service on your own or even to repair a car yourself in your garage.
Now, in most cases, to do it according to the current legislation as it would be impossible. But, fortunately, the legislator has envisaged in the new Law “About insurance” a number of exclusions when the insurance company still has to pay monetary compensation. Unfortunately, most drivers do not care. But our laws, as always, you need to be able to read between the lines. Let’s order.
Why the authorities banned the cash payment for CTP?
In the explanatory note to the Federal law FZ-49 28.03.2017 years said that the changes to the Law “About insurance” is needed to suppress the activity avtoyuristov collectively buying from car owners across the country the right to claim compensation for the accident from the insurance company (generally the owner receives from avtoyuristov a fixed amount and assigns under the agreement and power of attorney the right to claim compensation from the insurance).
Further, avtoyuristy in the courts end up getting twice, whereas, in the opinion of the legislator, insurance companies suffering huge losses in the subsequent paying various penalties, fines and court costs. Ultimately, the government decided to protect the poor of insurers are inventing to replace cash compensation in the CTP natural. However, it is strange that the authorities believe the insurers, which are all made in order to cancel payments. In fact, according to the speed of adoption of the law, insurers-especially nobody checked.
In some cases, not made of natural compensation in the form of repair?
As we have said, natural damages to the vehicle (repair) the insurance company undertakes in all cases. Fortunately, the new Law “About insurance” there are exceptions. It adjusts item 16.1 of the Federal Law “About insurance”:
16.1. Insurance compensation of harm caused to a car owned by a citizen and registered in the Russian Federation, is carried out by the issue of the amount of insurance payment to the victim (beneficiary) in cash Desk of the insurer or transfer the amount of insurance payment to the Bank account of the victim (beneficiary) (cash or non-cash) in the event of:
a) total loss of the vehicle
b) the death of the victim
C) infliction of serious or medium gravity harm to health of the victim as a result of occurrence of the insured event if the insurance claim the victim had chosen this form of insurance indemnity
g) if the victim is a disabled person and the insurance claim have chosen this form of insurance indemnity
d) if the cost of repair the damaged vehicle exceeds a subparagraph b of article 7 hereof the sum insured or maximum amount of the indemnity established for the cases of paperwork about road accident without participation of authorized police officers, or if, in accordance with paragraph 22 of this article, all participants dorozhno-transport incident is found liable for damages, provided that in such cases the victim does not agree to pay for repair service station
e) selecting a victim damages in the form of insurance payments in accordance with the sixth paragraph of paragraph 15.2 of this article or in paragraph two of clause 3.1 of article 15 of this Federal law
g) the existence of an agreement in writing between the insurer and the injured (beneficiary)
We specifically singled out the last line of the conditions which, under current Federal Law “About insurance”, allow insurers instead of natural compensation in the form of a repair centre that the insurance company a contract to make cash payments.
As you can see, as it usually happens in our complicated laws, this paragraph is pretty vague. In detail on it and stop.
So, under the law of any motorist is entitled to receive a cash payment for insurance by a written agreement signed with an insurance company. The only question is how to get the insurance company to conclude such an agreement. Because in most cases it is more profitable to send you to repair, than to make a money payment, which, by the way, it is easier to challenge in court.
However, the law requires insurers to conclude such an agreement, when to make repair impossible due to existing norms in the Law “About insurance”.
So, under the current Law “About insurance, the term of carrying out of repair the damaged vehicle cannot be more than 30 working days from the date of granting the victims damaged vehicle to the service station, or from the date of transfer of the vehicle to the insurer for its transportation to the service. The increase in the period of repair is possible only with the CONSENT of the victim.
The insurance company has the right to send the victim to repair the car only in the technical center, located no more than 50 kilometers from the accident site or residence of the injured party. However, this limitation applies only if the delivery of the vehicle to the technical center by its own. If the insurer will arrange the delivery of the car to the car wash and back, he is entitled to carry out the repair centre located further than 50 km.
If none of the stations with whom the insurer contracts for the organization of repair, not in conformity with the rules of the compulsory insurance requirements of the organization of repair in relation to a particular victim, the insurer, with the consent of the victim in written form can give the victim a referral for repair at one of these stations. In the absence of that consent the compensation of the damage caused to the vehicle, is in the form of insurance payments.
Including pursuant to paragraph 15.3 of article 12 of the Law “About insurance”, the victim is entitled to receive from the insurance company in the technical direction of the center with which the insurer has no contract for restoration and repair work.
With the consent of the insurer in writing, the victim shall have the right to organize the renovation of their damaged vehicle to the service station, which the insurer at the time of submitting a victim statement about insurance reimbursement or direct damages absent agreement on the organization of repair.
In this case, the victim in the insurance claim or the direct damages specifies the full name of the selected service station, its address, location and payment details, and the insurer gives the victim the direction to repair and pay for reconstructive repair.
How to instead repair the car under the contract of insurance?
Here we come to the interesting part. As you know, the current Law “About insurance” does not forbid monetary payment for the car damages. Unfortunately, the majority of accidents (especially small ones) do not fall under the conditions necessary to ensure that the insurer has paid the money. But we found a way how to do it.
Your task is to convince the insurer to refuse natural redress through STO (service station). For this you have two options. The first is to make a technical centre where you sent the insurer to restore and repair, to abandon the work.
The second option is to write to the insurance company the application is recovery of repair work to make the payment, citing their arguments.
Now let’s dwell on the two versions. So, the first option: to get technical centre to refuse to repair the vehicle.
Unfortunately, this is not always possible. But try to not sin.
So, when transferring the vehicle to the car wash that you sent to the insurer, write the statement: I ask when replacing components, use ONLY new parts and install them ONLY in my presence. To pay for new parts refuse (according to the current legislation for regenerative repair in the CTP should be used only new parts).
Also, indicate in a statement that after the repair acceptance of the vehicle will be signed only after inspection by auto for quality repairs.
In most cases, after such statement technical center will refuse to repair, quickly inventing a reason by informing the insurance company. As a rule, then the insurer most likely will not send you to another technology center, realizing that the quality of car repairs under insurance payments leaves much to be desired. In the end, there is a big chance that after that the insurer is easy on its own initiative will offer you monetary compensation, quickly forgetting about the natural compensation.
How to receive a cash payment for insurance, if the car repair takes longer than 30 days?
And what if the car owner agreed to natural damages, giving the car in a technical center, where fixation was delayed for more than 30 working daysand has now changed his mind and wants to get a cash payment? If you do this, you will in any case not agree to the extension of terms of repair.
Remember that the insurance company is obliged to repair the car within 30 working days from the date of granting the victims damaged vehicle to the service station, or from the date of transfer of the vehicle to the insurer for its transportation to the service.
So while you do not sign the consent to extend the period of repair, the insurance company is liable for violation of terms of repair.
We will remind that under the law of violation of terms of repair to the insurer is threatened by a penalty in the form of penalties in the amount of 0.5 percent for each day of delay of the amount of damage, but not exceeding the amount of such compensation.
Including for failure of terms of repair the insurer has a liability to the Central Bank, which is the regulatory body for the insurance market. The systematic violation of the insurers of the Law “About insurance” the Bank is entitled to suspend the license of the insurer for the conclusion of contract OSAGO.
What to do if the service station where repair insurance, bred for extra money?
There is another unpleasant moment with the natural compensation within the framework of the contract CTP. Many service centers, knowing that most drivers are not legally savvy, literally bred of car owners for money, claiming that the money transferred by the insurance company for carrying out of repair, not enough to perform all of the work.
In the end, victims offer to pay for work or parts. In any case do not agree to pay any money. Especially if you have doubts about the quality of repairs technical centre where you sent the insurer. Remember that until you give your consent to the Supplement, you no one has the right to invoice an additional amount.
Do not forget that the responsibility for the restoration work of the vehicle bears an insurance company, which is obliged, within 30 working days, repair the vehicle using only new parts. Also the technical center shall not refuse to repair the car, if you refuse to pay. You should know that the problem of repair lies with the insurer and he needs to take care of the quality and timing of repair.
However, of course, in-kind compensation is less fat: in most cases, the quality of repairs and quality parts will leave much to be desired, unless of course you are not being repaired in the dealer. But, unfortunately, there the insurance companies send to reimburse for insurance only cars not older than two years.
How to convince the insurer to sign an agreement on monetary compensation of damage for insurance?
But how is it possible without a visit technical centers in the direction of the insurance company to convince the insurer directly to sign agreement about cash payment? Here, of course, it all depends on the amount of damage and your situation.
Unfortunately, in some cases, you will be more profitable to natural compensation than money. This is especially true of cars aged not more than 2 years, the insurer is obliged to send for repair to the dealer. Here, after receiving the money, you will only lose.
In other cases, it is better to get money if you know where I can repair it better and cheaper, or are you going to do the repairs yourself. Also get money benefits when you are not going to repair the car.
So, as we have said, to convince the insurer to sign such an agreement, it is not so easy. Especially without a visit to the technical center. But nevertheless everything is possible. Especially if you agree on the amount of damage, which can arrange the insurer.
For example, at the moment there is such practice when determining the amount of damages, for example, 40 thousand rubles, the insurer can meet you if you agree to a refund in the amount of 30 thousand rubles.
That is, in this case the insurer is more profitable to pay you a smaller amount than to pay for more expensive repairs. However, you must remember that signing with an insurance company agreement to receive compensation, you cannot sue to receive fair amount of damage. That is, by signing the agreement, you indicate full agreement with the assessment of the damage caused to the vehicle.
With regards to renovation, you shall have the right after a poor repair to apply to the courts with the claims to the insurer.