How to calculate compulsory motor liability insurance for a car yourself using new tariffs

In what cases can you get a refund for a previously purchased MTPL?

It is possible to legally return your own funds for a previously issued official MTPL policy. But this is only possible in certain cases:

Theft of a car or its total destruction. In case of complete disposal of the car, representatives of the insurance company return the money to the motorist.
Change of ownership of a specific vehicle. It is possible to return money for compulsory motor liability insurance when selling a car if there is an official agreement on the sale of a specific vehicle. If the owner changes under an official power of attorney, you will have to forget about returning the money.
Death of the policyholder or vehicle owner. In such situations, the owner changes, so the agreement loses its legal force.
Complete liquidation of the legal entity. If the car was owned by a company that has ceased to exist, one of the parties to the transaction formally ceases to exist. The agreement becomes invalid.
Liquidation of the insurer due to bankruptcy. In this situation, you need to have time to terminate the agreement before the bankruptcy procedure begins. If you delay with this issue, the company simply will not have enough funds later.

How to calculate an MTPL policy using the formula?

When calculating compulsory motor liability insurance using the formula, you need to take into account all the coefficients and the base tariff. The formula looks like this:

Policy cost = BT×KMB×KVS×OK×KMD×KS×KSS

The basic tariff for calculating the cost of compulsory motor liability insurance is common for the entire territory of the Russian Federation. Each type of vehicle had its own base tariff. Detailed tables of coefficients for calculating compulsory motor liability insurance using the formula can be found on the websites of insurance companies. Carefully compare the data in the graph and your own car to avoid errors in the calculations.

Having calculated all the coefficients and selected a base tariff that suits the characteristics of the vehicle, you can begin the calculations. The indicators are multiplied in accordance with the formula. The end result will be the cost of the policy.

How to terminate compulsory motor liability insurance early and return money for the unused insurance period?

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Often, citizens who want to receive a refund of the amount due to them notice the expressed reluctance of insurance companies to lose their funds. But, if the rules set out below are followed, you will achieve what you want. A citizen must act in the following natural sequence:

The applicant's appeal to the company where the formal agreement was concluded.

Collection of the required package of papers. Typically, all insurers require approximately the same set of documentation. The differences will lie in the specifics of the situation that allowed you to demand a refund. For example, the return procedure when selling a car will be slightly different from the situation when you need to terminate the contract and return the money invested in the policy due to the disposal of the vehicle. The list of required papers will be presented below.
When the documentation package is collected, it is handed over along with a completed statement, which should include a request for premature cancellation of the agreement. It is worth doing this at your branch of the insurance company. Its representative must provide a special application form, clearly describing the nuances and key points that should appear in the document. The applicant must fill out a couple of forms with his own hand. One will be with him, the second will be transferred to the insurer. The insurance company agent must certify the completed official form with a signature and seal. This will record the exact date of transmission of the official statement.
After the corresponding application is received, the company will carefully study the submitted papers and carry out a recalculation in order to return the funds to the policyholder. It is important to remember that the sooner you submit documents for the return of the required funds, the more significant the amount will be allocated.

Payments can be provided both in cash and non-cash (using the official bank details provided by the citizen).
What else to read:
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What documents will be required?

The list of required papers will differ depending on the case when it became possible to return the money paid when purchasing the policy. Official insurance companies can also make adjustments to the list of documents.

The package of official documents will look like this:

a copy of the policyholder's passport;
photocopy of OSAGO;
a photocopy of the official agreement on the disposal of the car or on its sale;
a receipt that will serve as proof of the fact of payment of the policy;
photocopies of the death certificate of the owner of the vehicle and the right of inheritance;
a photocopy of the title with exact information about the new official owner of the car;
a certificate from the traffic police proving that the car has been deregistered;
official bank details of the existing account;
if this issue is handled by a trusted person, an official power of attorney will be required to represent the interests of a particular citizen.

How to make an application correctly?

In order for the application to be drawn up correctly and for monetary compensation to be received, it is important to study the sample application. It is necessary not only to submit correctly completed documents, but also to comply with deadlines.

For your information! Each day of delay reduces the amount of compensation due.

The application should be written in free form. It needs to reflect information such as:

personal data of the official representative of the insurance company, information about the policyholder and the insurance company;
official policy number;
a request for premature termination of the agreement and the return of the due amount of money (when making a decision, the factor that forced you to apply for funds will also be taken into account);
official details of the still existing special insurance agreement and a special bank account where funds should be received for the previously issued official MTPL policy.

It is important to sign the application and indicate the date the paper was drawn up.

Application form:

Sample statements in .doc and .pdf formats can be downloaded at the bottom of the page.

Procedure

The service is not provided in all branches of the organization. By calling the hotline you should find out the address of the nearest office and the list of required documents. The presence of the new car owner is not required. The application will be reviewed by community staff and, after review, the final result will be announced.

List of documents required to obtain the balance:

Passport confirming identity;
Insurance certificate;
Contract of sale;
Account details when making a transfer.

If the vehicle is sold on the day the vehicle title is issued, the transfer may take longer. The average time spent is 1 – 2 hours, but customers should take into account the 23% tax when purchasing a policy.

Car owners should consider the option of receiving the difference. The amount will be paid in cash immediately. By bank transfer transactions last from 1 to 14 business days. If the money has not been credited to the balance after a period of time, you need to find out from the administration the reason for the delay.

How to calculate the exact refund amount for a previously issued compulsory motor liability insurance?

Experts recommend requesting a refund under compulsory motor liability insurance when selling a car right on the day the specific car is sold.

After this, they calculate how many days are left until the expiration date of the previously issued compulsory motor liability insurance. If 100 days are not used, 100/365 = 27.3% of the invested money is due for payment. But for the reason that another 23% needs to be subtracted, when calculating we get 0.273*0.77=0.21. This means that we will be talking about a return of 21% of the total policy price.

If the official agreement was signed not for a 12-month period, but for a shorter period of time, this point must be taken into account when calculating. If the policy was purchased for a 4-month period and the same 100 days were not used, the refund amount will be calculated as follows: 100/(31+31+30+31)=81.3%. But when 23% is deducted from this amount, the balance will be equal to 62.6% of the total cost of the agreement. The amount due to the policyholder can be found out using a special formula: B = (PS - 23%) * (n/12), where B is the return amount, PS is the cost of a specific insurance, n is the number of calendar months remaining until the complete termination of the policy.

Termination of compulsory motor liability insurance - the point of view of policyholders.

Having heard this, the savvy Policyholder objects:

— Excuse me, however, there are two authoritative sources that claim that the insurance premium upon termination should be returned in proportion to the remaining paid days and which do not provide for any further deductions.

The first such source is the Civil Code of the Russian Federation, which in Article No. 958 informs us: “In the event of early termination of an insurance contract... the insurer has the right to a portion of the insurance premium in proportion to the time during which the insurance was in force.” Not a word about deductions!

This is echoed by the MTPL Rules in the current edition, put into effect by Decree of the Government of the Russian Federation No. 263 of 05/07/03. In paragraph 34 it says this: “The insurer returns to the policyholder part of the insurance premium for the unexpired term of the compulsory insurance contract.”

“And besides,” our smart Insured continues, hoping to drive the last nail into the insurance coffin of his company, “those recommendations of the All-Russian Union of Auto Insurers, to which you refer, after the intervention of the Prosecutor General’s Office and the Federal Insurance Supervision Service (FSSN) have been changed again in 2004.

However, things rarely end peacefully.
Well, insurers don’t want to return what they have already received! And the most principled Insureds go to court. [td]

Return deadlines

According to the rules of OSAGO, there must be a legal return of the money that was invested in purchasing the policy:

on the day of termination of the official policy (if payment is made in cash);
before the expiration of a 2-week period from the date of submission of the official application, if the payment will be made in cashless form.

Insurance companies independently choose how it would be more convenient for them to issue a certain balance of money to the client.

If there is a delay in the return, the motorist must send a prepared claim letter to the insurance office. If there is no response to the letter of claim, you should seek protection of your rights in an official court.

Citizens who sell their cars should remember that the amount of money back under the policy should be calculated from the day the official application is written, and not from the day when the official purchase and sale agreement is concluded. Therefore, experts do not recommend that all policyholders postpone the issue of contacting an official insurer. Otherwise, there will be a risk of losing part of the invested funds.

Official representatives of an insurance organization often encounter difficulties when terminating a contract. Problems often arise when transferring money. Insurers are not always the culprits. Often the culprits of the problem are policyholders who make mistakes when indicating their current account number. In such situations, the money is sent to a completely different person.

It is also not advisable to delay the collection of documents. You should also be careful when filling out the application. When giving it to the insurance company, it makes sense to make a copy of the official document. Such actions will protect you from unforeseen situations.

If the official insurer proves that the required amount of funds has been transferred, but you have not received it, you should find out the payment order number and rush to the bank office. There you can easily check whether funds have been transferred to the special account. In very rare cases, money gets stuck in a banking institution, so if this turns out to be the case, it would be inappropriate to blame the insurance company for late accrual of funds.

What has changed in OSAGO in 2021

Innovations related to compulsory motor liability insurance boiled down to increasing the base tariff and adjusting regional coefficients. Moreover, all innovations were due to several important factors, including:

Since April 1, 2015, it has been established that if harm to a person’s health is caused during an accident, then payments under compulsory motor liability insurance will no longer amount to 160,000, but to 500,000 rubles;
Economic sanctions, as well as inflationary processes in the economy, have led to a significant increase in the cost of spare parts for imported cars, which has made their repair very expensive;
The values of territorial coefficients were far from ideal values: the load across the territory was not distributed in the most optimal way.

As a result, the authorities adjusted the coefficients by region and then changed the tariffs. At the same time, in addition to increasing payments upon the occurrence of an insurance situation, car owners received the following benefits:

Tightening the liability of insurers;
Convenience of filling out OSAGO forms;
Ease of obtaining a policy.

Its cost is calculated as follows:

Cost of OSAGO = Basic tariff * Regional coefficient

When should you not terminate an official contract under compulsory motor liability insurance?

There are a number of situations when it is not worth terminating the MTPL agreement. We are talking about cases when:

There is little time left before the end of the contract period.
the sale of the vehicle is planned (under such circumstances, it would be more reasonable, instead of terminating the MTPL agreement, to simply add a new citizen-owner of the vehicle to the existing policy).

Before contacting an insurance organization with a request to allocate money, it makes sense to make your own calculations and understand whether it would be advisable to submit an official application for the return of a certain amount.

In what cases is it not advisable to terminate a contract?

According to the legislative provisions, the policyholder can contact the insurance company to terminate the MTPL policy and return part of the cost no later than 60 days after the sale of the vehicle. Accordingly, if you violated the established deadlines, then there is no point in collecting documents and writing an application for a refund; you will simply be denied such a request. The inappropriateness of the application may also be caused by too short a period remaining until the expiration of the policy: the shorter the period, the less money, which is also subject to minus 23%. If the policy expires in a month, then you will spend more money on travel and collecting documents. Therefore, before contacting the company, use the above formula and evaluate the profitability of this solution.

Some valuable tips

Misunderstandings often arise regarding the refund amount. It is important to understand that, according to the Federal Law “On Compulsory Motor Liability Insurance”:

a partial refund is provided (the amount needed for special insurance compensation will be returned);
An amount proportional to the unused period of MTPL coverage will be refunded.

Typically no more than 77% of the total policy price is returned. The remainder, equal to 23%, always goes to other purposes. He won't be coming back.

When applying for a refund of money previously spent on an insurance policy, it is important to take into account a number of points. For example, the KBM coefficient, known to many, for the absence of emergency situations while driving. It increases the policyholder's eligible discount when purchasing a future policy. If the validity period of a previously issued compulsory motor liability insurance expires completely after a few calendar months, there is no need to interrupt the insurance. In this case, you can wait for the KBM jump. After this, the next policy can be purchased at the most favorable price. If the agreement is terminated early and the funds are returned, the coefficient will not increase.

Before sending the application, you need to take into account the period until the full expiration of the agreement. It is worth independently calculating the amount of the refund and the amount of upcoming costs. It makes sense to weigh all the advantages and disadvantages and only after that take on the solution to the issue. Another interesting option that provides the opportunity to receive money directly in the office is the case when the current policy is reissued to the new owner. The applicant will receive the required amount from it (of course, minus the standard 23%).

There is also a rule that few people know. If the owner has successfully sold the car and has a strong desire to finally terminate the MTPL agreement and return the money, an official application must be submitted no later than 60 days after the sale of the vehicle. Otherwise, funds under the official insurance special policy will not be allocated.

The legislative framework for compulsory motor liability insurance changes frequently. It is important to keep track of innovations and changes.

Now you know how to return money for an unused MTPL policy in the event of the death of the car owner, sale of the car, liquidation of the company, or theft of the vehicle. Use the example calculations and seek the return of the unspent amount of funds under the MTPL policy, if you have grounds for this.

How to calculate compulsory motor liability insurance yourself using an online calculator?

To independently calculate the price of compulsory motor liability insurance, you must use the formula that is used to calculate the price of insurance policies as accurately and correctly as possible. It consists of several indicators approved by law. In order not to deal with complex calculations yourself, you can resort to the help of online calculators. There are many of them on the web. Working with such calculators is quite simple. It is enough to enter the exact data in the required form fields. Usually the set of parameters comes down to the following list:

Vehicle type;
Number of people allowed to manage;
Transport power;
Date of issue;
Locality;
Driving experience of persons admitted to driving;
Age of persons admitted to driving transport;
Data for calculating the malus bonus coefficient, which indicates the place of registration of the car and the period for which the policy is issued.

After entering all the data, you must select the program under which insurance will be provided. After this, the calculator will display the calculation results. The use of calculators greatly simplifies the calculation procedure and allows you to immediately compare the cost and conditions of compulsory motor insurance in different companies.