Compulsory third-party liability insurance (OSAGO) is a “legalized robbery” of Russians, Leonid Olshansky, vice-president of the Russian Automobile Traffic Association, told NSN. According to him, OSAGO needs to be abolished or reformed, removing “repressive norms” from it and the possibility of no additional tax. The expert called for voluntary insurance.
The OSAGO law is legalized robbery! I don’t see the point in insurance. You have to go very radical. It is necessary to abolish compulsory insurance and make it voluntary <...> It is necessary to remove the repressive norms and all the loopholes for which you cannot pay or overpay,” said Olshansky.
According to the expert, insurance is a voluntary transaction, just like a lease, but OSAGO has still become mandatory. He also recalled cases when insurance companies refused to pay insurance and indicated that there was probably no insured event.
Deputies of the State Duma previously asked the General Prosecutor’s Office to check the effectiveness of the OSAGO mechanism. According to the law, at least 80% of the money received from the sale of policies must go to the compensation of the insured events, but the companies do not fulfill these conditions. Businesses have admitted that up to 10% of drivers in the Russian Federation drive without OSAGO.