Most CASCO insurers do not fully know the terms of their contract, and are not sure whether UT is included in their insurance contract or not. Typically, insurance companies do not pay insurance claims under the insurance policy, interpreting the insurance contract in their favor. CASCO insurance – loss of marketable value.
In such cases, according to the decision of the Supreme Court of the Russian Federation, insurers are obliged to pay such payments. The judge, in this case, relies on the fact that the insurance policy directly relates to the insured event, since this is specified in the insurance contract and is interpreted as damage to the car.
What is UTS?
To find out what CTS is, you just need to read its decoding.
LTS – loss of marketable value. Means damage to parts, protective surfaces, replacement of joints and other parts associated with the vehicle obtained during repairs or a traffic accident, as a result of which the car loses its appearance or marketable value.
A similar definition was indicated in the resolution of the Supreme Court of the Russian Federation dated July 24, 2007. No. GKPI07-658. This resolution designates damage that is classified as insured incidents.
Explained in simple words, the loss of marketable value is a decrease in the quality of the vehicle, as well as its appearance.
In the event of a decrease in the market value of the car, as well as in the event of an accident or the absence of the culprit, the court invites the insurance company to include calculations for vehicle insurance in its payments under the CASCO policy.
Typically, lawyers work under the following articles: clause 2 of article 15, clause 2 of article 12 of the Federal Law “On compulsory motor liability insurance for vehicle owners”, as well as article 929 of the Civil Code, after reading which you can understand that vehicle insurance is real damage, which in must be calculated and included in insurance payments.
The compulsory insurance contract is concluded in relation to the owner of the vehicle, the persons specified by him in the compulsory insurance contract, or in relation to an unlimited number of persons allowed by the owner to drive the vehicle in accordance with the terms of the compulsory insurance contract, as well as other persons using the vehicle legally basis.
clause 2 of article 15 of the Federal Law “On compulsory motor vehicle liability insurance for vehicle owners”
The insurance payment due to the victim for causing harm to his health as a result of a traffic accident is carried out in accordance with this Federal Law to compensate for the costs associated with restoring the victim’s health and his lost earnings (income) in connection with causing harm to health as a result of traffic accident.
Insurance payment for personal injury in terms of reimbursement of necessary expenses for restoring the victim’s health is carried out by the insurer on the basis of documents issued by authorized police officers and confirming the fact of a road traffic accident, and medical documents provided by medical organizations that provided medical assistance to the victim in connection with with the insured event, indicating the nature and extent of damage to the victim’s health. The amount of the insurance payment in terms of compensation for the necessary expenses for restoring the victim’s health is determined in accordance with the standards and in the manner established by the Government of the Russian Federation, depending on the nature and extent of damage to the victim’s health within the limits of the insurance amount established by subparagraph “a” of Article 7 of this Federal Law law. Information about the insurance policy number and the name of the insurer who insured the civil liability of the owner of the vehicle at fault in a traffic accident is provided to the pedestrian injured in such a traffic accident, or his representative on the day of contacting the police department, whose employees drew up documents about such traffic accident.
clause 2 of article 12 of the Federal Law “On compulsory motor liability insurance for vehicle owners”
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1. Under a property insurance contract, one party (the insurer) undertakes, for the payment stipulated by the contract (insurance premium), upon the occurrence of an event (insured event) provided for in the contract, to compensate the other party (the policyholder) or another person in whose favor the contract was concluded (the beneficiary) for the damage caused as a result of this event, losses in the insured property or losses in connection with other property interests of the insured (pay insurance compensation) within the limits of the amount specified in the contract (insurance amount).
2. Under a property insurance contract, in particular, the following property interests can be insured: 1) the risk of loss (destruction), shortage or damage to certain property (Article 930); 2) the risk of liability for obligations arising from causing harm to the life, health or property of other persons, and in cases provided for by law, also liability under contracts - the risk of civil liability (Articles 931 and 932); 3) the risk of losses from business activities due to violation of their obligations by the entrepreneur’s counterparties or changes in the conditions of this activity due to circumstances beyond the control of the entrepreneur, including the risk of not receiving expected income - business risk (Article 933).
Civil Code of the Russian Federation Article 929. Property insurance contract
Subtleties of calculation
Today, there are several methods for calculating TCB compensation. One of the methods was released by the Central Bank of the Russian Federation in the fall of 2014. It is based on the positions of the law on compulsory motor liability insurance, namely Article 12.1, paragraph 3. Previously, the methodology of the Ministry of Justice and Halbgewax was used. The disadvantage of the latter method is that it is focused only on foreign cars.
These methods differ in restrictions regarding the main parameters of the car, including its age. The calculation is made for cars that have been manufactured for up to five years. When calculating, two coefficients are determined - the relative cost of repairs and the ratio of expenses for remuneration of workers and the purchase of spare parts.
To calculate using the Halbgewax method, the following information will be required - the price of a new and used car, age, cost of parts, repair costs and labor costs. Before the main calculation, the market price is divided by the cost of a new car and multiplied by 100%. If the final figure is less than 40%, there is no point in calculating the TTC. To calculate the parameter of interest, the following formula is used: (K/100)x(CR+CO). Here K is the coefficient (determined using a special table), CR is the market value.
The calculation according to the methodology of the Ministry of Justice has been used since 2013. It is relevant for legal proceedings when there is a need to conduct an examination. The goal is to determine the cost of restoration and evaluate the vehicle. The object of study is a machine or information from a manufacturing plant or seller. A special document discusses in detail the description, subtleties of calculation and recommendations. It says here that the size of the vehicle depends on the type, features and nature of the damage.
As for the calculation method proposed by the Central Bank of the Russian Federation, a description of the subtleties and nuances of the calculation is also considered here, formulas and tables are provided to obtain the necessary parameters. The manual provides advice on determining the value of a car before an accident, provides requirements for photographing a car and other information.
In what cases is it legal to collect vehicle insurance under CASCO insurance?
Unfortunately, not every injured driver has the right to receive compensation in this category; moreover, it is quite difficult to find an insurance company that is willing to work with the possibility of paying out the vehicle insurance.
First of all, it should be taken into account that TCB is practiced in the following cases:
1Damage to the vehicle in an accident, as well as other circumstances associated with disasters, falling trees, accidental fires that somehow damaged the car.
2A foreign-made vehicle must be in operation for no more than 5 years.
3Vehicles of a domestic manufacturer must be no older than three years.
4Depreciation of the vehicle is no more than 35% for cars of a domestic manufacturer, and no more than 40% for cars of a foreign manufacturer.
5The mileage of a domestic car should not exceed 50,000 km; for a foreign car, the value may be close to 100,000 km.
6The car does not need to undergo repairs of the first degree of complexity.
7Damage to the car is not considered an insured event.
8 As a result of repairs, the car suffered some damage or lost its original appearance.
At the same time, the main legal factor that influences the insurance company when making a decision on the payment of TTS is a court ruling.
Without resorting to a lawsuit, the insurance company will refuse to pay the insurance policy for a very long time, relying only on the insurance contract and the clauses specified in it.
Subtleties of filling out an application
The application for the transfer of TCB is completed in a free form, because a strict form of the document is not provided for by law. The document formatting principle is standard. The header contains personal information, phone number and e-mail. The text of the document specifies the circumstances under which the car was damaged, the fact of payment of the basic insurance compensation under CASCO, as well as the grounds on which the insurer makes the payment.
At the bottom of the application you need to write down the details where the money should be transferred, a list of attached documentation, the day the paper was issued and a signature. If the insurance company refuses to issue compensation within ten days, the car owner has the right to appeal to a judicial authority and demand payment of the due amount.
Compensation for vehicle insurance under CASCO for repair work at a service station
After an accident or necessary repairs, according to the insurance contract, only its performance characteristics will be returned to the car, there is no talk of compensation for property value.
Such compensation is possible only for certain types of repair work:
1When changing or resuming the old body shape and geometry after it has been sufficiently damaged.
2Full or partial replacement of attached body parts.
3Repair of removable and non-removable body parts.
4Full or partial painting of parts or specific parts of the body, as well as work on painting non-metallic parts (tuning elements, car decorations).
5Damage to the factory assembly of the vehicle as a result of disassembly for the purpose of major repairs or painting.
As practice shows, these works can significantly reduce the marketability of the car; therefore, these works are intended primarily for cars after an accident.
After all, as you know, a car that has not yet been in an accident, but has already been subject to one of the above-described cases more than once, also falls under the terms of settlements under the vehicle insurance policy.
Obtaining the necessary documents
Experts in the field of auto insurance advise not to remain idle in cases where your car no longer meets the requirements of vehicle insurance claims. You will never receive insurance payments just like that until you want to do it yourself.
To prepare all the necessary documents, you must remember that you need to be quite decisive with the insurance company, and also prepare certain documents.
First of all, familiarize yourself with the algorithm that was prepared for such cases:
1First of all, write a statement to your insurance company in order to reimburse the vehicle's vehicle. You should contact the company that issued you the CASCO policy. The application must be submitted in two copies, after which you must ensure that they are registered.
2Be sure to contact an expert and independent appraiser in order to be able to establish the cause and the size of your TCB. An independent adjuster is necessary to ensure that all damages are assessed in full, however, if your insurance company works honestly and you trust it, you may not spend money on an independent expert.
3 Do not forget to file a lawsuit in which you indicate your claims against the insurance company in the event that the latter refuses to pay under the TTS. Your application will be considered as a claim if you do not indicate abbreviations from the following laws: clause 2 of article 15, clause 2 of article 12 of the Federal Law “On compulsory motor liability insurance for vehicle owners”, as well as article 1082 of the Civil Code of Russia.
4Prepare your CASCO insurance policy.
5 Documents proving that the car belongs to you. As evidence, it will be enough to provide a driver’s license and documents for the car, or a written and certified power of attorney from the owner of the car.
6Documentation from the master or service station, which will indicate all the necessary parts and their cost. In addition, the work order must indicate the full cost of repairs.
7Add a certificate in form No. 154 (a sample is available below the list), which will be issued by your insurer after you, together with the insurance company, have submitted an application for compensation for vehicle insurance.
8 In case of repair of your vehicle after an accident, be sure to provide the assessment commission with repeated copies of all certificates provided by the traffic police. In addition, you can simply scan all documents and certificates, after which it will be much easier to reproduce them.
Satisfying the claim for compensation for damage, the court, in accordance with the circumstances of the case, obliges the person responsible for causing the damage to compensate for the damage in kind (provide an item of the same kind and quality, correct the damaged item, etc.) or compensate for the losses caused (clause 2 of Article 15). It is worth paying attention to a rather important fact that the loss of the marketable value of a car under CASCO in 2021 is all the damage that the car receives and that was not done intentionally by any party. If your vehicle was intentionally damaged, then the TTS will not be collected.
Civil Code of the Russian Federation Article 1082. Methods of compensation for harm
How to get compensation for loss of marketable value of a car
If the accident resulted in the loss of the car's marketable appearance, and the car owner intends to receive appropriate compensation, he should prepare for the fact that the insurer is unlikely to give up without a fight. Therefore, the driver should follow a certain procedure:
- Record a traffic accident as a result of which the damaged vehicle lost part of its market price.
- Initiate an assessment of the technical equipment by specialists of the assessment company.
- Write and submit to the insurer a statement requesting payment of compensation.
- Get money.
The application can be taken in person to any of the offices of the company that issued the policy, or sent by registered mail with a list of the contents and confirmation of delivery. Along with the application, you must send all documents relating to the circumstances of the accident or damage to the car, calculations made, and expert conclusions.
After submitting the application, the car owner will have to wait 30 days. Having considered the client’s request, the insurer can:
- agree with the client’s arguments and pay the requested amount;
- satisfy the requirements only partially;
- refuse payment by sending the applicant a reasoned refusal.
If the applicant does not agree with the insurer's decision, he has the right to appeal the refusal through legal action.
Sample application
An application for payment of compensation for lost commodity prices can be written by hand in any form. The law does not provide for a unified form of this document. But to be sure that it is compiled correctly, you can use the sample posted on our website.
Those who decide to write an application on their own should remember that it is an official document, and therefore must contain the main details and sections:
- The title section contains the name of the insurer and its address, as well as the personal and contact details of the applicant.
- The narrative part tells about the incident, indicating its date, time and place and describing the details of what happened. In this section you should enter information about the car, including its age, make, model, mileage, market value before and after the accident.
- In the summary part, you need to describe your requirements and indicate their amount, as well as provide the details for transferring funds.
- The final section contains a list of attached documents, including the expert opinion of the appraiser, a copy of the policy, and a copy of the statement about the occurrence of a disaster event.
- At the end of the application, the date of its preparation and the signature of the car owner are indicated.
Compensation for technical assistance, judicial practice
Oddly enough, judicial practice in relation to cases of compensation for vehicle insurance is quite constant and most cases are won in favor of the insurers. Unfortunately, the methods for resolving claims are quite straightforward, but they are still effective, which undoubtedly pleases the insured.
The review of the Presidium of the Supreme Court of Russia has the last word in favor of the insured persons. In which it is indicated that the loss of marketable value is in fact real damage, and in this case it is necessary to carry out penalties.
In this regard, the majority of insurance companies decided to include compensation for TC in the list of items for compensation for damage received, since often the fees for lawyers and the costs of judicial bureaucracy significantly exceed the costs of compensation for TC.
How to calculate correctly
The insurer's liability for loss of marketable value of the car is determined by one of three existing methods:
- Ministry of Justice (official and complex, used in forensic practice);
- guidance document (in-depth knowledge of the material part and mathematics is required);
- Halbgewax table (the simplest method of preliminary assessment).
The consistency of the latest method for determining the size of the TTS payment for insurance has been rightly criticized by many experts. It takes into account only general financial indicators, so the accuracy of the final amount raises some doubts. The courts are cautious about such assessments.
When resolving the issue either peacefully or judicially, it is preferable to turn to official independent expert organizations. They must have experience in conducting commodity and transport research and have worked in the services market for a significant time.
Attention! It makes no sense to carry out any assessment of loss of presentation if the wear value has exceeded 40% or the car has been in use for more than five years.
