How CTP is drawn up without restrictions, how insurance premium is calculated, what coefficients are taken into account when calculating, advantages and prospects of unlimited “auto citizens”
Currently, there is no normative act limiting the number of people allowed to operate the vehicle in the framework of compulsory motor third party liability insurance.
The policyholder can draw up a contract only for himself, or he can indicate as many people as necessary in it.
If a large number of drivers use the car and making a list is impossible or pointless, insurers offer a more convenient option – CTP without restrictions. It provides for the possibility of using the vehicle by anyone.
The main thing is that the owner himself does not mind. Next, we will consider this option in more detail and find out all the nuances of such insurance
MTPL registration without restrictions
The form of the policy provides for the existence of a special field where information about all persons who are allowed to manage the insured vehicle must be entered.
If insurance is selected without restrictions, data about the drivers are not entered there, and the columns should be crossed out.
In the section “Driving License” there are 2 cells with explanations, which are located on the left side. When applying for a citizen without restrictions, a checkmark is put in the upper cell.
The driver’s license numbers are not entered into the policy and are not even provided to the insurer. The originals and the data of these documents are required only upon conclusion of an agreement with a list of specific persons who will be allowed to use the car.
The final cost of OSAGO without restriction is influenced by various factors. CO can be 1 or 1.8. If the number of vehicles approved for use is not limited, a coefficient of 1.8 is applied. Accordingly, the price of the service increases by 80%.
Policyholders should be aware that the use of KOs in calculating the insurance premium excludes the possibility of applying another raising factor. We are talking about the FAC, which is used in the calculation of “auto-citizens” for young and inexperienced drivers.
The maximum pic value is also 1.8. So unlimited insurance in the case of attracting young motorists will not become more expensive.
If the transport is owned by a legal entity, then a raising KO will be applied necessarily, because it is not possible to draw up an agreement with a list of drivers in this case.
Change of conditions
“Avtograzhdanka” without restrictions has other nuances that can negatively affect its value. The personal Bonus-Malus coefficient of drivers who use vehicles under this policy will not be taken into account here.
For example, everyone can accumulate a personal discount of 50%, however, when calculating an unlimited policy, it will not be considered. As a result, the cost of compulsory motor third-party liability insurance will increase not by 80 percent, which was mentioned above, but by 300-350% due to the loss of due discounts.
Despite such calculations, for some insurers, an insurance policy without restrictions may be the most optimal and profitable option. If we consider all the same “Bonus Malus”, then it is worth thinking about increasing its values.
If the persons authorized to drive the car are not particularly careful and have already raised their KBM to 2.45, then it is more advisable not to use this coefficient at all, but to arrange general unlimited insurance. This can save about 27%.
Accounting for KBM
Notwithstanding the foregoing, Bonus Malus is still used in calculating the cost of compulsory motor liability insurance without restrictions. In this case, the insurance history of not the driver, but the vehicle owner, is taken into account.
In fact, insurers proceed from the loss-making of the car itself, which is used by an unlimited number of people, and draw conclusions about increasing or decreasing the coefficient before extending insurance for this vehicle.
If the owner buys a new car, then he will receive the earned discount only when extending the insurance period for the previous car. For a new car, insurance without restrictions is calculated with an initial coefficient.
An organization that owns several cars has several insurance histories for each vehicle. Accordingly, when applying for compulsory motor third-party liability insurance, it can receive discounts and allowances for various vehicles.
Advantages of unlimited “Citizens”
Unlimited OSAGO costs a lot of money, but such a choice gives undeniable benefits to the insured. In recent years, only OSAGO could restrict the owner of the vehicle in transferring it to other persons, since handwritten powers of attorney were abolished.
With an unlimited policy, the car owner can act in a way that is convenient and profitable for him. This is relevant :
- when using the services of “sober driver”,
- when transferring the car to friends, relatives, colleagues for a period of prolonged absence of the owner,
- in force majeure situations, when the owner cannot control the machine himself and is forced to ask another person to drive her to the parking lot.
In many such cases, an additional driver can be included in the policy, but often lack of time, urgency or other factors do not allow this to be done at the insurer’s office.
Re-issuing a policy to add one or more persons takes a lot of time, so many policyholders prefer to choose a more convenient option with an unlimited number of drivers.
In 2017, an amendment to the e-CTP was amended. Now it has become easier to make adjustments to the electronic policy of “auto-citizen”. If you want to expand the list of drivers, the organization will wait no more than 2 days.
This will simplify the paperwork, and in the near future, a fairly expensive auto insurance without restrictions may become less popular.
On a note
Unlimited CTP is a kind of loophole for hijackers. If the documents were in the car during the hijacking, then the traffic police officer who stopped her would not have any suspicions about the fact that the attacker was driving.
The offender will show his rights, papers on the car and open insurance policy and will be released, since all papers are executed correctly. This is a clear minus of this option, “citizen”, but you can protect yourself from it without leaving documents for the car in the cabin.
On the other hand, the high price of an unlimited “citizen” determines a more attentive attitude of insurers to their customers. Those who draw up unlimited compulsory motor third-party liability insurance note that they are often served without a queue, ensure delivery of documents to a specified location, and offer other pleasant bonuses.
You have learned what unlimited liability insurance is, how it is issued, how much the service costs, how the insurance premium is calculated, and what are the advantages of this option.
The decision on the choice of a specific insurer and the MTPL registration form should be made only by you. But remember that the presence of a policy of “citizenship” is a prerequisite for the operation of the vehicle.