PRESS: Russian ministry prepares reform of auto insurance

MOSCOW, Sep 15 (PRIME) -- Russia’s Finance Ministry has prepared major changes to the compulsory auto liability insurance, known in Russian as OSAGO, Kommersant business daily reported Thursday.

Among other amendments, the ministry has proposed to divide OSAGO policies into three types: an “economic package” with current limits of 400,000 rubles for damage to property and 500,000 rubles for injuries, a “standard” package with limits of 1 million rubles on both claims, and a “premium” package with payments of 2 million rubles.

Other amendments encompass replacement of a power factor in OSAGO by a coefficient of driving violations.

The ministry will discuss the amendments with the central bank on Friday, the daily said.

(64.9737 rubles – U.S. $1)

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