How is the TTC calculation carried out in 2021?

Material checked by Expert: Anastasia Tabalina

Experienced lawyer, auto lawyer. Legal assistance in case of deprivation of a driver's license.

Any driver, when selling his car, expects that the price will be as close as possible to the one at which it was purchased. But as a result of an accident, even if high-quality repairs have been made, the value of the car can drop significantly. Therefore, it is so important to make the most accurate calculation of the vehicle’s technical characteristics of the damaged vehicle.

Nuances of calculating vehicle insurance under compulsory motor liability insurance

In order to understand how the vehicle insurance under compulsory motor liability insurance is calculated, you need to know some features. The basis from which the calculation is “based” is the market price of the car. Accordingly, compensation for a luxury car will obviously be higher than for a golf class car. Main parameters taken into account:

• loss of presentation, damage to the coating;
• decrease in performance indicators;
• deterioration of technical strengths. knots caused by repairs.

In order to initiate an examination, certain requirements must be met. Namely:

1. If the car is Russian-made, it must be no older than 3 years, if foreign – no older than 5 years.
2. Wear - no more than 35%.
3. The car gets into an accident for the first time.
4. The driver was found not guilty of the accident.
5. UTS payments are summed up with insurance ones, and the total amount should not exceed the maximum amount for insurance.
6. The MTPL agreement is not expired.

On a note!

Under the CASCO agreement, payments are made on the same terms, unless otherwise stated in the document.

UTS calculation methods

Calculation of the loss of marketable value of a car is carried out only by a licensed expert organization. They may use any of the following techniques:

• guidance document;
• Ministry of Justice;
• Halbgevaxa.

Attention!

Before requesting an examination, it is necessary to determine the age of the car and the level of wear. If these parameters exceed legal requirements, this procedure will be meaningless.

Guidance Document Methodology

The most complex and rarely used method of the guidance document is based on calculating the technical resistance for each part damaged in an accident separately. Calculations are carried out using the following formula:

UTS general. = UTS1 + UTS2 + UTS3 + … + UTSπ

Explanation: UTS1 ... UTSπ – the cost of repairing each part separately.

You must first calculate the cost of repairing the part using the following formula:

UTSπ = K x SK x SD

Explanation:

• UTSπ – cost of repair of one element;
• K is an indicator of changes in CTS, it is this that depends on age and wear;
• SC – combined indicator of coefficients;
• SD – retail price of the damaged item.

Example for bumper damage:

On a note!

Since the technique requires special care and a lot of time, it is applied exclusively to premium cars.

Methodology of the Ministry of Justice

Calculation of TTC in 2021 according to the method of the Ministry of Justice is used much more often than not. It consists of a comparative description of the price of the car before the accident (the cost of a similar car is taken) and after. Formula: NA = C x ∑PC/100

Explanation:

• NA – the difference between the car before the accident and after repair;
• C – the cost of the car before the accident;
• PC – correction factor, available in the expert’s table.

Example of calculation for damage to the upper transverse frame of the radiator:

Indicators of correction factors are indicated in expert tables. When installing them, they are guided by the following parameters:

1. When performing welding work related to the replacement of components, the correction factor is reduced by 5 times from the initial value.
2. Repairing an element cannot be more expensive than replacing them with new ones.
3. If the defect is not the result of an accident, I reduce the coefficient by 2.
4. Replacing the body paint reduces the final cost of the entire car.

On a note!

If body distortion is detected before an emergency, the coefficient decreases.

Halbgewax technique

Calculation using this method is the most accurate and is used in most cases. The formula resembles the previous one, but has significant clarifications. Namely:

IV = PC/100 x (RS + PCT)

Explanation:

• IV – required data;
• PC – correction factor;
• RS – market value taking into account age and wear and tear;
• PCT – total cost of repair.

When calculating the correction factor, several additional parameters must be taken into account:

1. A = PCT/RS x 100%.
2. B = OR/CZ x 100%, where OR is payment for the services of craftsmen, CZ is the price of spare parts.

An example of calculating the vehicle vehicle cost of 900,000 and 2 years old:

It makes sense to carry out calculations when the following parameters are met:

1. Value A does not exceed the limits of 10 - 90. If the cost of restoring the car is significantly less than the full cost of the car, then the compensation will be a much smaller amount than conducting an examination with all measurements and calculations.
2. Indicator B is more than 40. With these parameters, the cost of work will exceed the price for parts.

On a note!

Calculating the TCB on your own is not an easy task. In order for the figures to have legal force and be presented to the insurance company, the examination must be carried out by a special commission. But you can double-check the data using an online calculator.

What is loss of marketable value of a car (LCV)

Loss of market value of a car is a term denoting a premature decrease in the value of transport (as a product) as a result of wear and damage to its technical and protective parts. In order to determine the degree of loss of consumer qualities of a car that has suffered from various reasons, an independent auto examination is carried out. Car owners need to know that TTC is accrued only in cases of repair of those parts and assemblies that directly affect the appearance and operation of the vehicle. Payment for parts and assemblies that are not subject to straightening or painting and that do not affect the performance of the car is not provided for in the insurance.

Instructions for receiving compensation

In most cases, when a car owner applies for compensation, insurance companies refuse. But according to the resolution of the Plenum of the Supreme Court No. 58, paragraph 37 of December 26, 2017 “On the application of the law on compulsory motor liability insurance”, a decrease in commodity value is damage and is subject to mandatory compensation under certain conditions. These conditions are enshrined in Art. 7.1 “Research of motor vehicles to determine the cost of restoration repairs and assessment.”

Before starting a legal battle with the insurance company, you must follow these instructions:

1. Carry out calculation of the technical equipment. To do this, seek independent expertise from any competent organization that has the appropriate license. Additionally, it is necessary to collect documents confirming the car repair costs incurred, a report from the insurance company on the initial and subsequent inspections.
2. After the calculation has been made, the car owner is given a certificate of vehicle registration. It is submitted to the insurance company.
3. Employees review the entire package of documents and, if they agree with the presented papers, pay the indicated funds.
4. If compensation is refused, the motorist will have to go to court.

Attention!

If, at the time of the occurrence of the insured event, the company with which the MTPL agreement was concluded was declared bankrupt, legal proceedings will begin with the car owner at fault for the accident.

List of required documents

Both when contacting “insurers” and when collecting funds through the court, the most important thing is to fully collect documents. The main package consists of:

• passport;
• driver license;
• a valid MTPL policy;
• vehicle registration certificate (VRC);
• receipt of payment for the examination;
• act with calculations of the expert commission;
• traffic police protocol;
• application from the car owner for compensation.

Attention!

Professional lawyers recommend drawing up at least 4 copies of each document: for the insurance company, for the court, for two participants in the accident.

What is the order

Payment of the lost part of the cost of the car due to an accident is not obligatory for the insurer, since there is no law that would oblige the insurance company to make such payments in favor of the applicant under compulsory motor liability insurance. Therefore, small insurers try to do everything possible to avoid such costs. How can a driver involved in an accident get the money they are entitled to?

Conditions for receiving additional TCB

It is worth referring to the Supreme Court Resolution of August 10, 2005, the rights of car owners are protected. According to this document, the vehicle is recognized as the same damage as a dented fender or a broken windshield, because the car owner after the accident will not be able to sell the car at the same price as before the accident.

That is, the rights of the car owner are violated by the person who is recognized as the culprit of the incident. This means that the insurance company of the person responsible for the accident must compensate the injured car owners for vehicle insurance.

Claims for compensation payments will be more realistic if you use the services of a qualified appraiser who can determine the market value of the car valid at the time of the appeal.

Upon receipt of an expert’s opinion, you can file a claim to recover payments from the insurance company that sold the MTPL policy to the person responsible for the accident.

Application for insurance company for MTPL under compulsory motor liability insurance

To return the UTS, you need to start by drawing up a request application for the Investigative Committee in 2 copies.

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Sergey Aleksandrovich

An independent expert in the field of assessment after an accident, an experienced car lawyer.

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The document is submitted for registration to the office of the insurance company: one copy will remain with the insurer, the second will be returned to the person who brought the documents with a mark on the date and time of receipt by the insurance organization.

Application for TCB

You should not hope for an immediate response from the insurance company; often not all insurance companies strive to immediately satisfy such requests. To get a positive outcome of the case, the application must be drawn up correctly.

This will reduce the chances of the insurer to justify a refusal to the owner of the MTPL policy.

The application details are as follows:

• the header must contain the name of the court to which the plaintiff is applying, information about the defendant insurer in the case, and information about the plaintiff in the case; information about the person responsible for the accident;
• Below is the amount of the paid car duty, the amount of the claim, the nature of the damage to the car and the accident itself is described;
• a mandatory indication that the culprit of the accident is a client of this insurance organization, which is confirmed by the fact that the culprit of the accident purchased an MTPL policy from the insurance company;
• then submit the request for recovery of the vehicle tax, indicate the amount of compensation, the cost of legal costs, the amount of the paid car duty;
• indicate the list of attached documents;
• At the end, put the date of filing the application and the signature of the plaintiff.

Collection procedure

Reimbursement of expenses associated with a decrease in the value of a vehicle due to an accident in 2021 is regulated by Resolution of the Plenum of the Supreme Court of the Russian Federation No. 2 dated January 29, 2015.

According to this document, the injured party to the accident will need to perform the following actions:

• calculate the TTS with the help of an independent expert agency, receive the results on paper;
• write a statement of claim and submit it to the office of the Investigative Committee;
• wait for the insurer’s response: if he refuses, demand that the refusal be drawn up on paper;
• apply to the court at the place of registration of a particular insurance institution.

FAQ

Question

: “The insurance company refused to pay compensation, what should I do next?”

Answer

: “To date, the legislator has not established clear instructions for the collection of TTS, therefore it is necessary to act in accordance with general legal norms:

• pre-trial claim to “insurers”;
• recourse to the court at the location of the insurance company, in case of refusal.”

Question

: “The TTS calculation showed an amount greater than what insurance can cover, from whom should we recover the rest?”

Answer

: “It is necessary to file a claim in court and name the car owner at fault for the accident as the defendant.”

Question

: “Is it possible to pay compensation for a new car if it gets into an accident a second time?”

Answer

: “No, in this case there will be no compensation for damage.”

How things work in practice

Not every driver understands that he has the right to recover part of the lost value of his car after an accident. We have already described how to recover the due compensation. But does this mechanism work in practice?

Compensation for TCB.

If a person is involved in an accident through no fault of his own, he is entitled to compensation for vehicle insurance. To do this, you will need to draw up a compensation application for the insurer, submit it to the insurance company office, and wait for a response.

If it is not there or the insurance company refuses, the grounds for which, in the opinion of the car owner, are “far-fetched,” it is worth going to court.

Indeed, according to practice, insurers are not always eager to compensate for damages to cars injured in road accidents, citing dubious arguments for this.

In order not to bring the case to court, it is important to adhere to all the requirements when drawing up a claim application to the insurance company, collect a full package of documents, eliminating all chances of the insurer having grounds for refusing payments.

This will make it clear to the insurance company that legal proceedings do not frighten the driver, and he is ready to proudly win them.

But if the insurance company still decides to stand its ground and refuses to pay the compensation due to the injured car owner in an accident, then a trial cannot be avoided. If a person himself cannot represent his interests in court competently, it is worth hiring a qualified lawyer.

On incoming documents, any insurer undertakes to put a mark on the date of receipt. To ensure that compensation is found exactly who is entitled to it, do not forget to leave a copy of the claim statement for the Insurance Company with a mark of acceptance. Then the chances of receiving insurance compensation for the cost of restoring the car and damage from the loss of part of its value will increase significantly.