OREANDA-NEWS. September 13, 2011. Ingosstrakh Insurance Company starts sales of its new insurance product called Honest Civil Liability that allows victims of car accident to repair their vehicles without addressing the guilty party’s insurer and regardless of vehicle tear within RUB 125,000.

Honest Civil Liability policy helps to avoid a situation where payments under mandatory automobile liability insurance (MALI) received from the guilty party’s insurance company aren’t sufficient to complete the repair so the affected party has to pay from its own pocket or demand reviewing the insurance compensation for a long period of time.

The cost of insurance under Honest Civil Liability plan depends on the make and age of a vehicle and varies from RUB 1,800 to 6,500. The insurance object is category B cars up to years 10 of service life. The insurance coverage indemnifies for risks of damage sustained as a result of the accident with the identified participator.

The policy provides for indemnification of damage in kind i.e. in the form of repair and/or resto-ration works up to RUB 125,000 worth. The vehicle is accepted for insurance without previous inspection. To effect an Honest Civil Liability insurance policy one needs to provide a passport, certificate of vehicle registration and a Power of Attorney for contract conclusion, if needed.

‘We believe that Honest Civil Liability will be demanded by the customers as this policy allows to avoid MALI ‘loopholes’, says Igor Alexandrov, Deputy Director of the Retail Business Support Department, Ingosstrakh Insurance Company. — ‘Quite often MALI payment is insufficient to repair the damaged ve-hicle. This is due to a number of facts, e.g. in the event of MALI payment the vehicle wear is taken into consideration, while the cost of repair and spare parts is calculated using average prices for a specific region. Moreover, there is neither damage assessment methodology and standards, nor register of independent expert technicians, therefore the sum of damage assessment of different valuation officers may significantly vary. In case the guilty party is not insured or its policy is invalid, then the affected party has to take a legal recourse to receive the compensation or pay for the vehicle repair itself. Our Honest Civil Liability plan helps to avoid all these problems and enables to receive full indemnification and repair the car under MALI’.