Why compulsory motor third-party liability insurance, if the culprit pays: what is covered by the “auto citizen”, how does the third-party liability insurance differ from hull insurance, who pays for what in the event of an accident
According to the current law, each driver must have a policy confirming insurance of his civil liability.
However, not everyone understands why OSAGO, if the culprit of the accident pays? Does the affected and guilty party need a policy?
We will try to find out what such insurance covers, who, in what cases should pay compensation for the damage caused.
Why CTP, if the culprit of the accident pays
Despite the fact that the law on compulsory motor liability insurance was adopted 15 years ago, some people still confuse CTP with comprehensive insurance and do not understand why CTP is needed.
Beginners and even experienced drivers mistakenly believe that the “auto-citizen” policy protects their own car.
Some require the insurance company to cover the costs associated with the repair of their cars. Alas, this is not so!
The CTP policy only works when the policyholder causes damage to other cars. A car citizen does not apply to an insured car.
And to the question “Why is OSAGO, if the culprit pays”, one can answer this way: OSAGO is required for the culprit of an accident in order to shift the burden of damages to the insurer.
If you are found guilty of an accident, the insurance company that issued the policy will be required to pay compensation in your place.
Why introduced OSAGO
The idea of introducing a mandatory “citizenship” arose in the Soviet Union almost 60 years ago. Only by the end of the 20th century, the number of vehicles in our country began to increase sharply, and along with this, accidents increased.
Most often, the perpetrators of the accident were not able to pay for the repair of a damaged car. The victims were left with nothing and were forced to spend their own money on the restoration of the car or demand damages through the court.
For 10 years, Russian parliamentarians have been thinking about how to resolve this issue at the legislative level. And in 2003, the law on OSAGO was finally adopted.
Since 2015, policyholders have been able to apply for e-CTP via the Internet, and a couple of years later, online sale of policies has become mandatory for all Russian insurers.
Thanks to the online OSAGO calculator, any car owner can quickly calculate the amount of the insurance premium for his car. The policy received by e-mail must be printed on paper – and the insurance is ready!
Now, drivers no longer have questions about why OSAGO insurance is needed and how to arrange it.
How to insure your car
So, OSAGO does not apply to the vehicle of the insured, i.e. to our car.
But of course, every driver would like maximum protection for his own car.
Such protection is provided by another type of car insurance – CASCO.
The motor hull policy covers such risks as:
- total death of the vehicle,
- damage from fire, floods and other disasters.
Buying such a policy is optional, but desirable. After all, no one is safe from a variety of troubles that can happen to an expensive car.
Having a motor hull policy is often a prerequisite when buying a car on credit. The price of this service is high, however, upon the occurrence of an insured event, the expenses will be borne not by the car owner, but by his insurer.
So, we will repeat the answers to the most important questions of many motorists:
- Why CTP, if there is a hull?
Casco covers the risks associated with damage to your own car. CTP is required in case you cause damage to other vehicles.
- Why CTP, if the culprit pays?
If you are an injured party, then your CTP policy is not involved in the case. If you are responsible for the accident, then the insurer will pay for the damage instead of you.