OREANDA-NEWS. A possibility to use the repair of damaged motor vehicles as a preferable way to compensate for damages on OSAGO was discussed at a meeting of the Bank of Russia Insurance Expert Council today.

The necessity to urgently improve the OSAGO compensation for damages stems in particular from a high loss-making ratio of this segment in certain Russian regions.

Expert Council members upheld in general the need for the development of a natural form of OSAGO compensation provided it is supported by proper legislative regulation: it is essential to guarantee high-quality repair works within acceptable term, as well as to provide a location suitable for a vehicle owner.

To solve the issue of OSAGO high unprofitability in certain regions complex measures are needed, and the Bank of Russia is going to take an active part in the development of the mechanism for equal loss distribution including the consideration of the establishment of reinsurance pool of OSAGO insurers and enhancement of control over insurers’ administrative expenses. Such actions will add to OSAGO service accessibility for the population and enhance financial stability of insurance companies.