Payment or repair under OSAGO 2021 - what to do if the payment was not enough

Is it possible to get money instead of repairs with CASCO insurance?

The terms of the CASCO policy are regulated by the Civil Code of the Russian Federation and the Insurance Rules - they are approved when the insurance company is established. If the client, at the stage of drawing up the contract, chooses a cash payment scheme instead of repair work at a service station (usually a partner center), then the insurer does not have the right not to satisfy his request.

There are only three forms of compensation:

• payments with or without depreciation;
• transfer of aggregate or non-aggregate amount;
• repair at SK's partner service station or any other chosen by the client.

Neither party has the right to change the terms after the fact unless there is a legal basis for doing so. However, in judicial practice there have been precedents in which clients of insurance companies referred to the norms of the Civil Code and sought monetary compensation that was not regulated by the contract.

Factors influencing the duration of car repair under CASCO

How long does it take to repair a car under CASCO insurance? The timing is influenced by many factors. For example, such as:

1. The degree of damage to the vehicle . If more than 75% of the vehicle needs restoration, this can not only increase the time frame several times, but also lead to failure due to the impracticality of repair. If a minor repair is needed (such as replacing a headlight or painting a hood), it will take much less time than fixing a major one (replacing a windshield, rebuilding an engine, etc.).
2. The timing may also increase if the make of your car is quite rare in the domestic market, and parts for it must be ordered in the manufacturer’s country.
3. A situation often arises when the duration of repairs increases due to the existing queue at the insurance company’s partner service station . Most often this happens during icy conditions or when the first snow falls, when the number of road accidents increases greatly. If your insurer has many contracts with different service stations, most likely you will not encounter such a problem.
4. The timing is greatly influenced by how well the work is organized and the relationship between the insurance company and the service . Delays can arise due to bureaucratic problems: estimates for repairs not signed on time, directions issued incorrectly, long negotiations on the cost of work, transfer of advance payments not within the specified time frame.

Of course, problems between the insurer and the service station should not worry the client. Legally, you can demand compensation for damages in monetary terms or issue a referral for car repair under CASCO at another car service center.

When concluding an agreement with an insurance company, pay attention to the terms for car repairs indicated there. Sometimes it happens that such a clause is not specified in the conditions, then you need to focus on the regulations in the legislation (this is a rare case, since this is one of the main clauses of the contract).

According to the Law “On the Protection of Consumer Rights”, repair periods can reach a maximum of 45 days. In paragraph 1 of Art. 20 of the Law “On Protection of Consumer Rights” also states that, if possible, deficiencies must be eliminated immediately.

In reality, repair times usually do not exceed 30 days.

Why do insurance companies insist on compensation in the form of car repairs?

It is not profitable for insurance companies to violate the terms of the contract with the client. But there are situations when the document does not contain a clause on mandatory repairs at a service station, but when the policyholder contacts the company’s employees, they begin:

• convince him that repairs are necessary;
• prove the legality of the requirements of the insurance rules.

The reason for this behavior:

• An examination of damage is not always carried out before repairs. If the insurance company was able to convince the owner that there is no need for an assessment, then it is possible that only visible defects will be eliminated at the service station. At the same time, some damaged components may be missed - this reduces the cost of work and saves the insurer money.
• Service stations often work under a partnership program with insurance companies. Mechanics install parts purchased cheaper - the reporting documents reflect prices that do not correspond to the actual ones.
• Other cost cutting schemes. To avoid fraud, you need to conduct an examination before and after repairs.

Related article: How to choose CASCO for a car and which company is better to take out a policy
with. At the same time, repairing external defects and other components can be beneficial for the policyholder. You need to evaluate the proposed conditions before trying to achieve cash payments.

Important! If the conditions described in the insurance contract do not comply with the law and infringe on the consumer rights of the policyholder, then they are declared invalid in court.

If the case goes to court, you will need to prepare evidence of negotiations with the Investigative Committee. The consumer's requirement cannot be satisfied on the basis of unsubstantiated statements. Correspondence, written notices, calls, etc. are suitable as evidence.

Legal restoration period

At the moment, there is no regulation that clearly reflects the time period within which the company undertakes to repair the car. The time required to fix the breakdown is individual for each SC. Drivers need to take into account that the terms of car repair under CASCO are stipulated by law when drawing up an agreement with the insurance company. This is discussed in Article No. 943 of the Civil Code of the Russian Federation. It also indicates the factors influencing the time not spent and the reasons why warranty service may be delayed.

On average, the car repair period under CASCO ranges from 15 to 45 days. But the length of stay at the service station may increase.

Under what conditions is a cash refund possible?

If repair work is paid for by the insured, then according to the law (Article 929, paragraph 1 of the Civil Code), the insurance company undertakes to compensate for expenses at the request of the client. Before this, an independent assessment examination must be carried out.

Registration procedure:

1. The damaged car is handed over to the insurer.
2. An assessment examination is appointed (for reliability, the vehicle owner has the right to additionally order an assessment from a third-party specialist).
3. The expert issues a report in which the cost of repairs is calculated.
4. The car is sent to the service station.
5. After the repair, the insurer re-evaluates the car and draws up a delivery certificate, which records all the work performed.

The insurance company undertakes to pay the costs declared by the appraiser. To confirm expenses, a receipt from the car service center is attached to the expert’s report.

There are situations when the insurance company sends the driver to a service center, but the car cannot be repaired for one of the reasons:

• queues;
• The service station refused service due to the large volume of work;
• the repair was carried out, but not completely or of insufficient quality.

In such a situation, the policy holder has the right to claim a cash payment, since the conditions for mandatory repairs from the insurer’s partner cannot be met.

Vehicles under warranty are repaired only at the service center of the company's official dealer. If the car is sent to a third-party service station, the insurer pays the costs indicated in the invoice.

What is included in the CASCO repair?

The company agrees to repair cars in cases where it is feasible from an economic point of view. Sometimes replacing parts and repairing damage costs more than the market price of the car. In this situation, the policyholder pays compensation for damage.

Vehicle restoration services are provided by the following companies:

• RESO Guarantee.
• Ingosstrakh.
• Rosgosstrakh.
• Yugoria.
• AlfaInsurance.

It is important to know! Restoration work is carried out provided that most of the vehicle was not damaged in the accident. The condition of the car, in which repairs under CASCO are not carried out by an official dealer, are indicated in the contract when taking out insurance.

The owner of the car can count on the following services being provided free of charge:

• Elimination of defects in bodywork.
• Replacement of windshield, bumper, engine and other structural elements.
• Repairing dents.
• Correction of scratches and chips.
• Restoration of the running system.
• Replacement of pendants.

It is important to know! If an insured event occurs, the driver does not have to pay for the preliminary technical inspection. The company undertakes to partially or fully cover the costs associated with car service services.

How to receive a cash payment as compensation under CASCO

The money will be transferred to the client’s bank account (it is indicated in the application for payment). By agreement with the insurance company, it is possible to receive cash at the cash desk.

How to get money under CASCO:

1. Draw up and submit an application for payment (no later than within 3-7 days after the accident - the exact timing is specified in the individual agreement).
2. Prepare and attach a package of documentation (certificates, copies of identity cards, receipts) to the application.
3. Provide the vehicle for inspection by an appraiser and drawing up a report.
4. Wait until the money is transferred to the policyholder’s account (the terms are specified in the contract).

This option of hassle-free payments is possible only if the agreement includes a clause on the possibility of payment in cash equivalent, instead of sending it to a service station for repairs.

Article on the topic: “CASCO Ingosstrakh” - conditions and insurance cases

Correct formulation of the reason why you chose money

Changing the terms of the agreement, if it does not describe the possibility of paying money in cash, is possible only with mutual agreement of the parties. If the policy does not allow you to receive funds in lieu of repairs, then the above scheme will be useless.

Important! It is recommended to re-read the agreement with the insurance company. There may be a clause about your options for obtaining a refund.

The insurance company can accommodate the policyholder halfway and agree on a transfer of money in circumvention of the terms of the contract if the application indicates one of the reasons for the request:

• the car has been stolen - repairs at a service station will not be required to restore the property;
• after eliminating the damage, problems remain with the operation of the vehicle (the services were provided poorly or incompletely) - for this, an additional examination is carried out, the report of which becomes the basis for the claim.

If the insurance company refuses to satisfy the client’s request and follows the terms of the contract (when there are no notes on the payment of money), then the issue can only be resolved through the court. Moreover, the applicant needs to prove the legitimacy of the claim.

How to fill out an application and required documents

The application must be written within 7 days after the occurrence of the insured event.

It describes the facts:

• where and when the event occurred;
• what are the reasons;
• what damage did the car receive?

If the agreement allows you to claim funds, you can re-indicate the details for the transfer in the document. If the policy describes other methods of calculation, then the policyholder needs to justify the reason why he is asking for compensation in the form of payment.

It can be:

• difficulties with repairs (the necessary work can only be carried out at a special service station that is not a partner of the insurance company);
• the car was involved in an accident far from the insurer's service center and cannot be delivered to the site for repairs.

The company can meet the client and satisfy the requirement. However, this is her desire, not her obligation. If the insurer follows the contract, then it has the right to limit itself to sending the car for repairs, with which the applicant may agree or not. If the client voluntarily refuses the service, this does not give him the right to receive payment. The final decision remains with the Investigative Committee.

For any money transfer, the company will require the applicant to provide documents. Without evidence, the occurrence of an insured event can be disputed.

The client is required to prepare:

• application (sample);
• copy of ID;
• a copy of the CASCO policy;
• proof of vehicle ownership (registration, driver's license);
• certificate from the traffic police, police, Ministry of Emergency Situations or other authority (depending on the insured event);
• act of expert assessment.

The more supporting documents are attached to the case, the greater the chances of the claim being satisfied. The insurance company does not have the right to request from the client papers that are not provided for by the rules or to refuse compensation on this basis. However, the policyholder may, on his own initiative, provide additional photographs, video materials, witness statements and other evidence of events.

Related article: CASCO insurance policy in Russia and its conditions

What else should you provide to the insurer?

You can convince the insurance company to transfer money if you provide evidence of the need for this. For example, an expert’s report that repairs at the insurer’s service station are impossible.

It reflects the facts:

• Date of preparation;
• document number;
• details of the appraiser;
• inspection time;
• location of the assessment;
• vehicle brand;
• registration number, VIN;
• official mileage;
• owner's passport details;
• description of damage;
• defects during use;
• signatures of the parties.

If the act is drawn up with an error, this may affect the amount of payment.

Terms of payment of compensation

In practice, money is transferred within 30 days. In the case of CASCO, all conditions are described in the contract - there are no legislative acts regulating the process. Large companies pay compensation within 15 days.

What to do after submitting your application?

So, the driver injured as a result of an accident correctly completed an application for payment of compensation under the CASCO policy and promptly contacted the insurance company to receive his money instead of repairs, bringing properly completed documentation from the competent authorities, which indicates the fact of the occurrence of an insured event.

What to do next? Is it possible to influence insurers to pay in cash instead of repairs?

Now that all the necessary documents are in the insurance organization, it is necessary to open the set of CASCO rules, which was received by the policyholder when signing the insurance contract.

This document specifies the time frame for consideration of your application, and also indicates the time frame when the company undertakes to pay compensation in money or when you should wait for your vehicle to be repaired.

Find this section, mark it for yourself and remember the rules for issuing.

You should not rely on insurance agents to serve you when accepting an application for compensation in the event of an insured event. Show that you have the necessary information and have not just paid a lot of money for insurance, but are well versed in the issues of insuring your vehicle.

Knowledgeable car enthusiasts command respect from insurers, which means they will not “hang on their ears” trying to prove that there is no way to pay in cash instead of repairs.

We find a section in the rules that specifies exactly what documents must be provided to the insurer in order for it to pay you money in lieu of repairs. In the event that the insurance inspector demands other certificates or acts from you, you can safely contradict him and demand that he show in the set of rules on what grounds this or that document is required.

List of documents that a car owner must provide to an insurance company in order to pay monetary compensation under a CASCO policy instead of repairs:

• statement about the occurrence of an insured event;
• a certificate, protocol or other document from law enforcement agencies that were involved in registering this traffic accident (traffic police, police department, OGPN);
• documentation confirming that you are the owner or possessor of the vehicle (PTS, STS, Power of Attorney);
• papers that confirm that at the time of the accident your car was in good condition (maintenance certificate).

All documentation is submitted to the insurance agent strictly according to the list, which must indicate the date of their acceptance, as well as the completeness of the submitted forms, papers, acts and certificates.

What to do in case of refusal

In an official refusal, the Investigative Committee may indicate any reason for refusing to pay compensation in money. In most cases, the company refers to violation of the rules:

• intentionally causing damage to a car to obtain money;
• there are no claims against the culprit of the accident, which is proven in writing by law enforcement agencies;
• refusal to restore minimal damage to the injured party’s vehicle;
• traffic police officers were not called to the scene of the incident;
• the application to the Investigative Committee was sent late;
• the unreliability of the facts described by the client was revealed;
• the owner repaired the vehicle without conducting an examination.

The decision of the Investigative Committee can only be challenged in court. The application must provide evidence and reasons for the complaint.

The cash payment will be guaranteed to be transferred to the client if stipulated in the agreement. If not, the policyholder must reach an agreement with the insurance company. She has the right to satisfy the request or refuse the request. Its decision can only be challenged in court.

Benefits of monetary compensation under CASCO

As noted above, this insurance compensation option is most preferable for those cars that are no longer under warranty service, or for those car owners who live far from official dealership centers and, accordingly, do not have the opportunity to use their services. For example, in Crimea there are practically no dealers of leading automobile companies, and therefore policyholders, when applying for CASCO insurance, need to choose which insurance compensation option is right for them.

In such situations, the main motivator for choosing monetary compensation is the inability to carry out repairs at an official dealership. After all, if the service station is located a couple of hundred kilometers away, delivering a faulty car there is very difficult and expensive, and not all insurance companies provide services for delivering a faulty car after an accident to a dealership auto center using a tow truck.

But even if the insurer covers the costs of delivering the car to a service station, the repairs may be seriously delayed, compared to the situation in which the car owner chooses monetary compensation and the repairs are organized by him independently.

Terms of payment of compensation

After submitting documents and submitting an application, funds will be credited to the policyholder’s account within 30 days. An insurance company that does not communicate with the client or delays payments is required to explain the reasons in writing. In most cases, the insurance company refers to the lengthy process of agreeing on issues related to vehicle repair and waiting in line for restoration.

A claim sent to the legal authorities for pre-trial proceedings will help to achieve notification of the timing of compensation in a specific case. It sets out the requirement for payment of expenses within 7 days. If the client’s conditions are not satisfied, he has the right to file a lawsuit and demand payment of penalties for overdue days.