OREANDA-NEWS. February 25, 2011. The Federal Antimonopoly Service (FAS Russia) organised the first meeting of its Working Group for developing the minimum standards for voluntary vehicle owner insurance (comprehensive and collusion insurance - KASKO), reported the press-centre of FAS Russia.

The Working Group includes representatives of the Russian Ministry of Finances, Rosstrakhnadzor [Russian Insurance Supervision Service], FAS Russia, participants of the insurance market, consulting agencies and legal firms and associations of insurance market practitioners.

Members of the Working Group emphasized that developing the minimum standards for popular types of insurance is required under the list of instructions from the President of the Russian Federation, which were drafted following the meeting on economic issues that took place on 30th August 2010.

The Working Group also stated that insurers, who provide KASKO services, unreasonably reduce insurance payments, refuse to cover damages without explaining the reasons and make exceptions from insurance coverage, that are not provided for by the law of the Russian Federation. The Working Group supported the idea of introducing the minimum standards for KASKO services, which would specify the content and conditions of such services in order to ensure fair competition between insurance companies on the KASKO market and protect the rights of insurance service consumer to obtain complete and accurate information about consumer qualities and characteristics of the rendered services.

The Working Group discussed the issues related to the legal status of the document establishing the minimum standards and its form and content. By 28th February 2011 the Working Group will prepare proposals on the following items:

1. The legal status of the minimum KASKO standards with substantiation;

2. Proposals regarding the following norms tobe included in the minimum KASKO standard:

- The list of insurance events;

- The list of insurance coverage exceptions;

- Marginal wear-and-tear rates;

- Maturity period;

- The closed list of documents to be enclosed to the payment form;

- The minimum “constructive loss”; and

- Other necessary norms to be included in the minimum standard.

Proposals submitted by members of the Working Group will be used to draft documents on introducing the minimum KASKO standard, which will be discussed at the next meeting of the Working Group to be scheduled for the second half of March 2011.