One day is enough to conclude OSAGO contract
A contract for compulsory motor third-party liability insurance (OSAGO) should be signed on the same day a vehicle owner submits the relevant application and all necessary documents to an insurer and pays the insurance premium, provided there are no legal grounds to decline the request. This is the reminder the regulator has sent in its Information Letter to insurance companies.
The Bank of Russia receives complaints from citizens about insurers delaying OSAGO contract procedures and refusing to sign OSAGO contracts for various reasons on the same day that vehicle owners submit their applications.
However, Russian law stipulates that if a vehicle owner personally submits all necessary documents and a correctly filled-in application for an OSAGO contract (or an electronic form on the insurer’s website), the insurer shall launch the insurance contract procedure without delay (on the same day) and, after the insurant pays the insurance premium, the insurer shall immediately issue the policy and the contract to the vehicle owner.
If the insurant makes any mistakes in the application and/or submits an incomplete package of documents, the insurance company shall either promptly (on the same day) notify the vehicle owner thereof or execute the OSAGO contract.
According to the general rule, when an electronic policy is to be issued, the insurer shall obtain all necessary data on its own via the system of information exchange and interagency communication with the competent authorities and, after the insurance premium is paid, it shall immediately send the policy to the insurant in electronic form.
The regulator reminds insurance companies that they may be subject to administrative liability should they groundlessly refuse to conclude an OSAGO contract or delay the contract procedure.