Right this moment automobile house owners in Russia are going through an uncommon and ridiculous drawback, massively. It typically happens that house owners can not acquire an insurance coverage protection for his or her vehicles due to the scarcity of clean contract varieties, as insurance coverage firms’ managers are telling them. Such circumstances had been utterly unknown simply three years in the past. Russian legal professionals group is investigating this problematic state of affairs which impacts the expansion of Russian car insurance coverage phase.Such shortages of clean varieties are often occurring in case one is attempting to get a minimal obligatory third-party legal responsibility insurance coverage (or OSAGO) contract. So what might trigger the so-called ‘scarcity’ of clean varieties for such a insurance coverage contract? It seems that it isn’t the fault of insurance coverage firms’ printers; the reason being the greed of insurance coverage firms which have developed a peculiar ‘advertising and marketing scheme’. They’re making the most of the issues of automobile house owners who’re obliged to acquire this insurance coverage based on the legislation.So, the scarcity of clean types of OSAGO insurance coverage contracts is being created in function. Insurance coverage firms are taking this step so as to increase gross sales of different their services. Significantly, when a buyer involves an insurance coverage firm wishing to get an OSAGO contract, she or he is then proposed to signal a life, well being or property insurance coverage contract as nicely. And in case the client refuses from this extra service, firm’s managers say that there aren’t any clean varieties for OSAGO contracts. The client can not confirm this assertion in fact and has both to agree getting this additional insurance coverage service or simply go away.Mainly, in such a state of affairs automobile house owners can complain to the Federal Anti-Monopoly Service of Russia, the Central Financial institution of Russia or to the Russian Affiliation of Motor Insurers. However observe exhibits that such complaints don’t assist a lot: the one outcome you may get is a proper report from a controller about an inspection that was made within the firm and in regards to the lack of legislation breaches on this firm’s actions. Consequently individuals are turning to insurance coverage legal professionals in Russia increasingly typically.Nonetheless, there may be an possibility. The truth is, the service of auto insurance coverage (together with OSAGO contracts) is a public settlement based on the Article #426 of the Civil Code of Russian Federation and subsequently an insurance coverage firm doesn’t have a proper to refuse this service to a buyer. It doesn’t have a proper to drive an individual to amass additional providers previous to getting an OSAGO contract as nicely.In case you’ve confronted such an unlawful refusal from company insurance coverage supervisor, you could write down a proper request to signal an OSAGO contract on paper. You must connect copies of all vital paperwork to it, present your cellphone quantity and register it within the insurance coverage firm’s department workplace (ensuring it’s sealed). Most likely, in such a case tomorrow they may name you and suggest to return once more to their workplace to signal the insurance coverage contract with out persuading you to just accept any additional situations.Now allow us to examine the state of affairs with Russian insurance coverage firms refusing to signal third celebration legal responsibility (often shortened as KASKO) contracts.Russian insurance coverage firms are having sure issues on this sphere themselves. Central workplaces are cancelling KASKO providers in regional department workplaces due to drastic progress of buyer fraud which financial safety providers of department workplaces are failing to mitigate.The reason being that the variety of insurance coverage fraud ‘enterprise’ schemes which embody buying an insurance coverage contract for an costly automobile after which doing purposeful harm to it (comparable to reducing the upholstery, making scratches or fissures on the glass) has grown a number of occasions over the last two years. Thus, a automobile proprietor can obtain the compensation from the insurer which is calculated based mostly upon official automobile sellers’ costs for restore components. On the identical time, the broken automobile could be really repaired at a regular low-cost restore store.Flaws in Russian insurance coverage laws end in such fraud schemes being very worthwhile for many who select this type of ‘enterprise’. Based on info obtained by Russian legal professionals throughout their skilled actions, such schemes at the moment are more and more utilized by individuals who weren’t concerned in fraud schemes earlier.Financial safety departments of insurance coverage firms can not successfully counter such fraud makes an attempt as a result of they don’t have any authorized means to carry out deep investigations. All they will do is to advocate refusing such claims. However generally it makes the state of affairs even worse for an insurer when a automobile proprietor whose declare was refused wins this case in a courtroom and receives a sum even greater than was claimed initially.The rising wave of such fabricated insurance coverage claims in Russia has urged many insurance coverage firms to cease offering the service of KASKO insurance coverage and even to stop the Russian insurance coverage market in any respect. The most important a part of Russian-based insurance coverage firms used to have the car insurance coverage providers as their major supply of earnings and didn’t utterly understand what number of dangers are there on this area of interest; so now these companies are having a tough time.So right here is an recommendation for automobile house owners prepared to get a car insurance coverage contract in Russia from Russian insurance coverage legal professionals. It’s higher to be very cautious when selecting an insurance coverage supplier: in case of this firm’s chapter you wouldn’t be capable of declare your fee by way of the Russian Affiliation of Motor Insurers as this group can solely assist to compensate losses by OSAGO contracts. Subsequently, you’ll have register as a creditor within the formal chapter process, and the extra collectors there could be, the smaller probabilities of getting some compensation you’ll have.