Annual monitoring of rates of compulsory insurance of carrier's third-party liability to passengers’ life, health and property

In accordance with Federal Law No. 67-FZ, dated 14 June 2012, ‘On Compulsory Third Party Liability Carrier Insurance for Causing Harm to Life, Health and the Property of Passengers and on the Procedure for Compensating Such Harm Caused when Carrying Passengers by the Underground’ the Bank of Russia held an annual monitoring of insurance rates applied in compulsory third-party liability insurance of carriers for causing harm to passengers’ life, health and property (the Monitoring) and their reasonableness, as well as the effect of compulsory insurance on the development of transportation businesses in 2013-2016.

The Monitoring revealed that the rates established by Bank of Russia Ordinance No. 4175-U, dated 31 October 2016, ‘On the Marginal (Minimum and Maximum) Insurance Tariffs Applied in Compulsory Carrier Third Party Liability Insurance for Causing Harm to Passengers’ Life, Health, and Property’ were relevant.

The Monitoring was based on the statistics for the period of compulsory third-party liability insurance of carriers for causing harm to passengers’ life, health and property under review (2013-2016).

Significantly, the determination of insurance rates requires calculations with the use of statistics for a longer period of time, as in many types of transportation accidents are infrequent, whereas their consequences are rather harsh.

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