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Report: Russia launches new dispute resolution scheme for insurers

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Report: Russia launches new dispute resolution scheme for insurers

Starting in June, disputes between clients and Russian insurers regarding compulsory third-party motor insurance will be resolved by an ombudsman service set up at the Central Bank of the Russian Federation, Vedomosti reported May 22.

Clients not satisfied with their compulsory third-party motor insurance compensations will be required to file their complaint with the ombudsman before going to court. The service will be free of charge for consumers. The ombudsman's office will have 15 working days to consider the complaint and its decision will be binding for insurers.

Russian insurance companies initially welcomed the ombudsman's involvement in client disputes, hoping it would help reduce the number of court cases launched by dissatisfied customers demanding higher insurance payments. However, they are concerned about fees proposed for the ombudsman's service, amounting up to 45,000 Russian rubles. The All-Russian Insurance Association's head Igor Yurgens told the newspaper that insurers will continue discussions with the ombudsman about the reduction of the fees.

In 2018, Russian insurers paid out 9.25 billion rubles in compensations on compulsory third-party motor insurance as the result of court decisions, with most of the payments falling onto Rosgosstrakh Insurance Co. (PJSC), SPAO RESO Garantia and Ingosstrakh Insurance Co. Ltd., Vedomosti said.

As of May 22, US$1 was equivalent to 64.32 Russian rubles.