Compulsory Third Party Car Insurance: taking into account international experience and national peculiarities

The issue regarding necessity for introduction Compulsory Third Party Car Insurance in the territory of Pridnestrovie was raised long ago. It justifies the increase in the number of cars and, accordingly, increases the likelihood of traffic accidents. International experience shows that by means of Compulsory Third Party Car Insurance action the disputes on compensation for damage caused by a vehicle in a traffic accident can be resolved.

Initiated by the Government law-in-draft designed to regulate the relationship of car owners is placed for consideration of deputies. After reading the text of a legislative initiative in parliament many issues related to the mechanism of application of the Compulsory Third Party Car Insurance appeared. Compulsory Third Party Car Insurance has become the subject of public concern after the President issued a decree on its introduction on 1 June this year. Although originally intended introduction of Compulsory Third Party Car Insurance next year. Taking into account that, according to deputies, the relationship should be regulated by law, parliamentary Committee on Agriculture, Transport, Construction, Natural Resources and the Environment has decided to finalize the contentious issues in the framework of the conciliation commission. It was decided during the discussion of topical issues in the committee to hold parliamentary hearings with the involvement of the public, insurance companies, all interested parties in its decision.

Efimy Koval said that Russian law provides for the rule that the duty liability insurance does not cover certain categories of car owners. For example, the owners of the vehicles, whose maximum designed speed is not more than 20 kilometers per hour. Russian rule also applies to vehicles that on the technical characteristics are not allowed to participate in road traffic. Vehicles of the Armed Forces, other troops, military formations and bodies, which provides for military service, except buses, passenger cars and trailers for them does not require the purchase of the policy.

In our country as in other countries there is an annual increase in the number of registered vehicles by an average of 6000. Today, more than 143 million vehicles and more than 15,000 motor-vehicles travel roads of Pridnestrovie. According to the Interior Ministry, 225 accidents are recorded per year on average in the country. There are many those accidents when the participants do not call traffic police officers. As Efimy Koval noted, maintaining momentum of road accidents says the desirability of introducing compulsory insurance of civil liability of vehicle owners.

Deputy Grigory Dyachenko told about the need for adoption of the law. According to him, "price" of insurance policies, as well as the effect of insurance in the neighboring countries should be settled at the legislative level. The parliamentarian also drew attention to the deterioration of the living standards of citizens, in particular pensioners, for whom the acquisition of insurance policies become an additional financial burden. In this regard, Gregory Dyachenko spoke on the need for the insurance reserve.

The issues, raised during the hearings, concerned the advisability of purchasing insurance for agricultural machinery. Vice-President of "Intertsentr-Lux", the chairman of the Public Council under the Ministry of Agriculture Vasily Tishchenko talked about the possibility of acquiring agricultural policy for not at least six months as in the presidential decree and temporary needs. Notable is the fact that Russian law does not provide for the introduction Compulsory Third Party Car Insurance agricultural machinery. In this regard, the Hearings focused on selected course of the republic to harmonize or even unify the Pridnestrovian legislation with Russian.

On the basis of the provisions of Presidential Decree only one state-owned company shall be entitled to insure cars. In this regard, the necessity of competition in the provision of insurance services was discussed at the hearing. The appearance of a greater number of insurance companies has a positive impact on the cost of the insurance policy. According to the relevant committee a citizen must have the right to choose. In turn, Pridnestrovian insurance companies are not aside and waiting for the opportunity to issue insurance policies.

Representative of the insurance company "Arion" expressed his opinion. He considers that a size of insurance premiums and benefits (bonuses) for trouble-free driving should be fixed in the forthcoming law. Establishment of the possibility of concluding contracts for a period of insurance seasonal agricultural and discounts for drivers that do not allow an accident, as well as people with disabilities should be among these favorable conditions. The difference in approach when setting tariffs for different categories of policyholders is an important aspect.

Expressed at the hearings proposals according to the head of profile Committee Efimy Koval will be issued in the form of amendments to the government law-in-draft and reviewed by the Supreme Council. The Deputy expressed confidence that the harmonious interaction of civil society, experts in the sphere of insurance, the competent authorities of the government, insurers, deputies, public organizations will develop a system of compulsory third party liability insurance in the republic, which will be most effective and acceptable to all stakeholders.