Russians are beginning to use the court system more often to get auto insurance companies to make good on claims, according to statistics from the Russian Union of Auto Insurers, Vedomosti reported.
One out of every six rubles paid out is the result of a court case, the statistics showed. That amount has nearly doubled in less than two years, to reach 17.4 percent of all mandatory insurance claims payments. The average court ordered payment has also grown 31 percent and now stands at 50,000 rubles ($1,470). For the same period, those making claims that get satisfied without going to court are getting an average payment of 36,000 rubles.
Insurance industry players attribute the trend to a Supreme Court decision of 2012 that extends basic consumer rights to mandatory insurance claims. Injured parties can now demand compensation not only for material loss, but also for payment of fines and emotional damage.
This has led to the creation of so called 'insurance lawyers,' insurance companies said. These lawyers buy the claims rights from victims and then bring lawsuits against the insurance companies, on the basis of consumer rights protection legislation.
To resolve the situation, it is necessary to agree on a unified method of evaluating damage under mandatory auto insurance policies, said Dmitry Timokhin, the general director of MSK insurance company. This would reduce the number of disagreements, he added. The insurance union is also proposing to forbid insured parties to assign their rights to bring a lawsuit.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
