01 July 2003 10:38
Russia introduces mandatory third-party insurance for drivers
Moscow, 1 July: Russia has enacted the law on mandatory insurance of responsibility [liability] of owners of
transport vehicles. The law goes into force on 1 July.
Under the law, owners of transport vehicles shall insure their responsibility to other persons in the event of
causing damage to their health, life and property. If a driver is proved responsible for a traffic accident his
insurance company shall pay compensation to a party to which damage was caused. The insurance company shall also pay for
the overhaul of a transport vehicle damaged in the accident or other damages to property and pay a compensation for
damage caused to the health of people who suffered as a result of the accident, including a driver, passengers or
pedestrians involved. A driver responsible for the accident is paid nothing by the insurance company.
Under the new law, owners of transport vehicles shall buy an insurance policy that is obligatory for technical
maintenance and registration of transport vehicles in the period from 1 July until 31 December 2003.
As of 1 January 2004 in the event of the absence of the insurance policy a driver will be charged a fine equal to
five - eight minimal wages. The insurance tariffs charged depend on where a transport vehicle is registered, its engine
power, driver's age, driving record, the number of people authorised to drive the transport vehicles and the period
of insurance.
Under the tariffs endorsed by the Russian government the cost of insurance tariffs for physical entities
[individuals] is R1,980 (around 65 dollars), and for juridical entities [organizations] - R2,375 (around 80
dollars).
The law stipulates that a maximum insurance paid by the insurance company is R400,000: compensation for damage to
property and health shall not exceed R160,000 and R240,000 (around 8,000 dollars) respectively.
The overall number of cars currently used in Russia was put at 22.7m. Around 3m cars are registered in Moscow alone.
More than 150,000 cars are usually present in Moscow streets in rush hours.
The annual death rate as a result of traffic accidents in Russia is around 30,000-35,000, with approximately
130,000-150,000 people injured in such accidents. Last year, more than 184,000 traffic accidents were registered in
Russia.
[ITAR-TASS news agency] |
RUSSIA IN FACTS
