Bonus Malus (translated from Latin “good-bad”, compare English. Bonus-Malus System, BMS ) is a system of tariff coefficients (not to be confused with “discounts” - this is not a discount), usually used in the insurance business, which changes the amount of insurance premium paid by the client ( policyholder ) to the insurer , depending on its history of insured events .
There are other definitions of the concept of bonus malus:
- Calculation of insurance premium rates taking into account individual driving experience
- Rating system based on insurance experience of drivers
- The system of discounts for the absence of insurance claims
- Rating system based on past merits of drivers (policyholders)
In most developed countries , a car insurance system has a rating system that fines the policyholder responsible for one or more traffic accidents with an increase in the premium or a malus , and encourages policyholders who did not commit an insured event with a decrease in the premium or a bonus . The main goal of this system is to increase the interest of policyholders in more accurate driving, as well as to take into account individual risks as best as possible, so that each policyholder pays an insurance premium corresponding to his own frequency of insured events.
The bonus-malus system is part of the insurance rate system and is based on actuarial calculations .
In Russia, the use of the "bonus-malus" system was announced from the first days of the enactment of the OSAGO law, however, in practice, an automated system that allows for driver accidents (both compulsory motor liability insurance and comprehensive insurance ) was launched only in 2013 [1] [ 2] .
The bonus-malus coefficient itself began to operate in 2003, although an automated information system was introduced only in 2012. AIS contains data on concluded OSAGO agreements for the period from January 1, 2011. Since January 1, 2013, all insurance companies have become obligated to transfer all data about the insured to AIS. Since July 2014, only the information contained in the AIS has been used to obtain information about the previous insurance period. From September 1, 2014, the insurance company is obliged to transmit information about the policyholder within one day from the date of conclusion of the contract. The policyholder himself must immediately inform of all changes in the information specified in the contract of compulsory insurance.
You can get a CTP discount if the new policy comes into force no earlier than the previous one and if 1 year has not passed since the expiration of the action. Reducing the discount in case of insurance payments will be valid regardless of the date of entry into force of the new policy.
Example. The car was sold in February 2015, insurance was valid until April 2015, then a discount on the purchase of a new CTP insurance policy for another car can only be obtained in April 2015.
Content
MSC Legal Framework
Law of the Russian Federation No. 40-ФЗ dated April 5, 2002 “On Compulsory Third Party Liability Insurance of Vehicle Owners” in Art. 9 establishes basic rates and coefficients of insurance tariffs, in Art. 15 determines the procedure for compulsory insurance (conclusion of an agreement, termination of an agreement).
MSC Definition
There are 15 classes of driver insurance. If there is no information about the previous insurance history, the driver is assigned class 3 (KBM-1).
| Class at the beginning of the annual insurance period | Coefficient | Class at the end of the annual insurance period, taking into account the presence of insured events that occurred during the period of validity of previous compulsory insurance contracts | ||||
|---|---|---|---|---|---|---|
| 0 insurance benefits | 1 insurance payment | 2 insurance payments | 3 insurance payments | 4 and more insurance payments | ||
| M | 2.45 | 0 | M | M | M | M |
| 0 | 2,3 | one | M | M | M | M |
| one | 1.55 | 2 | M | M | M | M |
| 2 | 1.4 | 3 | one | M | M | M |
| 3 | one | four | one | M | M | M |
| four | 0.95 | five | 2 | one | M | M |
| five | 0.9 | 6 | 3 | one | M | M |
| 6 | 0.85 | 7 | four | 2 | M | M |
| 7 | 0.8 | eight | four | 2 | M | M |
| eight | 0.75 | 9 | five | 2 | M | M |
| 9 | 0.7 | ten | five | 2 | one | M |
| ten | 0.65 | eleven | 6 | 3 | one | M |
| eleven | 0.6 | 12 | 6 | 3 | one | M |
| 12 | 0.55 | 13 | 6 | 3 | one | M |
| 13 | 0.5 | 13 | 7 | 3 | one | M |
Limited MTPL
If a limited number of drivers are indicated in the CTP, then the CBM is determined on the basis of information for each driver. The general MSC is assigned to the driver with the worst insurance class.
Example. Under the new MTPL agreement, two drivers were allowed to drive the car, the first KBM is 0.9 (5th grade), the second - 0.75. Then the “calculated” MSC will be determined by the driver with the worst class and will be equal to 0.9.
If the previous MTPL agreement did not provide for limiting the number of drivers, and the new agreement concludes with restricting the number of persons allowed to drive a car, and there were no payments under the contract in the previous insurance period, the insurer is obliged to assign a lowering CBM (provided that the driver is in the contract CTP, which does not provide for a limitation on the number of persons admitted to management, was the owner of the vehicle).
Example. According to the previous "unlimited" MTPL, the car was driven by Ivanov (owner of the vehicle) and Petrov. There was no payment under the contract; owner's KBM was 0.95 (4th grade). The next year, a “limited” MTPL policy is purchased, according to which only one driver will drive a car, - Ivanov. The driver’s KBM will be applied to Ivanov, equal to 0.9 (5th grade). Estimated KBM will also be equal to 0.9.
Unlimited MTPL
If an unlimited circle of persons is allowed to drive a car, then the class is assigned to the owner of the vehicle, which is indicated in the MTPL agreement. The class is determined by the last motor third party liability insurance contract that has ended.
Example. According to the previous "unlimited" OSAGO, the car was insured. There was no payment under the contract; owner's KBM was 0.95 (4th grade). The following year, when extending the "unlimited" policy to the same car, the owner will receive a reduction in owner's CBM equal to 0.9 (5th grade). Estimated KBM will be equal to 0.9.
Early termination of the contract
Early termination of the “trouble-free agreement”, even a few days before its end, deprives the driver / owner of a discount for this period. When purchasing a new CTP insurance policy, the same KBM will be applied as was applied at the beginning of the early termination of the contract. In case of early termination of the "emergency agreement", payments made on it are taken into account when calculating the new KBM.
Example. According to the previous “limited” CTP, two drivers were allowed to drive the car: Ivanov with KBM 0.95 and Petrov with KBM 0.75. The fault of Ivanov was one payment. The contract was terminated ahead of schedule. When purchasing a new “limited” policy, Ivanov KBM will be upgraded to 1.4 (2nd grade), and Petrov again assigned KBM 0.75 (8th grade).
Recover Lost MSC
From December 1, 2015, if the policyholder detects the incorrect value of his KBM in the SAR database, he needs to make a statement to his insurance organization. If the appeal to the insurance company has not yielded results, you should contact the RSA in a letter of the established form (3-4 months for the consideration of the letter).
MSC in other countries
France
A discount is provided if the car is driven by a married couple.
UK
Accidental Driving Bonus Awarded. At the same time, the base rate pays less than 1% of policyholders. The event that leads to a reduction in the bonus is limited by the size of the insurance payment, therefore, more insured events are recorded than events that lead to a reduction in the bonus.
Sweden
The annual vehicle mileage, which is monitored during the passage of maintenance and in the insured event, is of the greatest importance for tariffing. If after an accident it turns out that the policyholder has underestimated the mileage, then the amount of payment is reduced. In case of gross violation of traffic rules or the contract, or 3 accidents during the year, the insurer has the right to terminate the contract and increase the tariff by 100%.
Switzerland
The policyholder has the right to indemnify the insurance company (which paid the victim) in order to avoid an increase factor (malus).
Germany
Different KBM for different types of machines. The discount for the first trouble-free year is 75%, for the second - 35%. There is the right of policyholders to independently manage minor losses in order to avoid a tariff increase.
Prospects for the development of KBM in Russia
- Transfer of all CTP insurance contracts to the condition “without restriction of persons admitted to management”
- Returns to the registration of bonus malus by the owner of the vehicle with the addition of saving the bonus when changing the vehicle.
If we keep the link of the bonus malus class to each driver inscribed in the policy, then the most reasonable would be the following changes to the bonus malus system:
- Recalculation of the bonus malus class for drivers once a calendar year (now such recalculation must be done after the expiration of each contract in which the specified driver is entered). It is logical that the value of the bonus malus class changes from January 1 of each year depending on the number of accidents in the past year.
- In all contracts concluded within one year, a single bonus-malus class must be indicated for one driver.
- When a driver is entered into an existing MTPL agreement, the driver bonus-malus class is determined not on the date of entry, but on the date the contract begins. This will avoid actions to exclude drivers from contracts and re-register in order to improve the value of the MSC.
Notes
- ↑ Barshev, Vladimir. Sly citizen . Rossiyskaya Gazeta No. 6277 (5) (January 14, 2014). - According to the results of 2013, the national average coefficient increased, which is calculated taking into account the accident rate. Date of treatment January 15, 2014.
- ↑ The President of the Russian Federation signed a law on changing the application of the “bonus-malus” coefficient in compulsory motor liability insurance . Interfax (December 27, 2012). - Russian President Vladimir Putin signed amendments to the law, providing for a change in the procedure for applying the “bonus-malus” coefficient in compulsory motor liability insurance, a statement posted on the website of the President of the Russian Federation says. Date of treatment January 15, 2014.
Literature
- Lemer J. Bonus Malus Systems in Car Insurance: Per. from English V.K. Malinovsky. - M: Janus-K, 1998 .-- 270 p.
- Lemer Jean Car Insurance. Actuarial models. - M .: Janus-K, 1998 .-- 316 p.
- Lemaire, J. (1995) Bonus-Malus systems in automobile insurance. ISBN 0-7923-9545-X
- Jean Lemaire Bonus-Malus Systems: The European and Asian Approach to Merit-Rating (Eng.) // North American Actuarial Journal. - 1998 January. - P. 26-47 . (inaccessible link)
- Dictionary / Comp. R.T. Yuldashev. - M .: Ankil, 2005 .-- 832 p. - ISBN 5-86476-159-1 .