INSTRUCTION OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of December 14, 2018 No. 5011-U

About procedure for adoption by the Bank of Russia of the decision on restriction of implementation by the insurer of insurance indemnity by the organization and (or) payment of recovery repair of the damaged vehicle

This Instruction based on Item 17.1 of article 12 of the Federal Law of April 25, 2002 No. 40-FZ "About obligatory civil liability insurance of owners of vehicles" (The Russian Federation Code, 2002, No. 18, Art. 1720; 2003, No. 26, Art. 2566; 2005, No. 1, Art. 25; No. 30, Art. 3114; 2006, No. 48, Art. 4942; 2007, No. 1, Art. 29; No. 49, Art. 6067; 2008, No. 30, Art. 3616; No. 52, Art. 6236; 2009, No. 1, Art. 17; No. 9, Art. 1045; No. 52, Art. 6420, Art. 6438; 2010, No. 6, Art. 565; No. 17, Art. 1988; 2011, No. 1, Art. 4; No. 7, Art. 901; No. 27, Art. 3881; No. 29, Art. 4291; No. 49, Art. 7040; 2012, No. 25, Art. 3268; No. 31, Art. 4319, Art. 4320; 2013, No. 19, Art. 2331; No. 30, Art. 4084; 2014, No. 30, Art. 4224; No. 45, Art. 6154; 2015, No. 48, Art. 6715; 2016, No. 22, Art. 3094; No. 26, Art. 3883; No. 27, Art. 4293; 2017, No. 14, Art. 2008; No. 31, Art. 4746; 2018, No. 1, the Art. 32) (further - the Federal Law of April 25, 2002 No. 40-FZ) establishes procedure for adoption by the Bank of Russia of the decision on restriction of implementation by the insurer of insurance indemnity of the harm done to the vehicle of the victim performed by the insurer by the organization and (or) payment of recovery repair of the damaged vehicle in case of identification by the Bank of Russia numerous (two and more times) within one year of violation by the insurer of obligations on recovery repair, including obligations on its organization and (or) payment.

1. In case of identification by the Bank of Russia numerous (two and more times) within one year of violation by the insurer of obligations on recovery repair, including the obligations on its organization and (or) payment established by Items 15.1 - 15.3, 17, 21 article 12 of the Federal Law of April 25, 2002 No. 40-FZ (further - compensation of damage suffered in nature), the structural division of the Bank of Russia exercising supervision of activities of insurers (further - authorized structural division), shall prepare and send for consideration of Committee of financial supervision of the Bank of Russia (further - Committee) the motivated conclusion about activities of the insurer containing:

information about the insurer (the complete and reduced (in the presence) trade names, registration number of entry in the unified state register of subjects of insurance case, the location, the primary state registration number, identification taxpayer number, license number on insurance implementation by the form activities "obligatory civil liability insurance of owners of vehicles" and date of its issue);

information on the number of the revealed violations of obligations by the insurer on recovery repair, including obligations on its organization and (or) payment, in four quarters preceding quarter in which the motivated conclusion about activities of the insurer is prepared (further - the period) with appendix of confirmatory materials (documents);

conclusions about availability in activities of the insurer of the bases for decision making about restriction of implementation by the insurer of compensation of damage suffered in nature;

the offer on the term of restriction of implementation by the insurer of compensation of damage suffered in nature taking into account the criterion specified in Item 3 presents of the Instruction.

2. By results of consideration of the motivated conclusion about activities of the insurer and the materials (documents) attached to it the Committee has the right to make the decision on restriction of implementation by the insurer of compensation of damage suffered in nature for the term established taking into account the criterion specified in Item 3 presents of the Instruction no later than 30 working days from the date of the direction by authorized structural division of the motivated conclusion about activities of the insurer and the confirmatory materials (documents) attached to it.

3. The committee proceeding from the number of the violations made by the insurer regarding obligations on recovery repair, including obligations on its organization and (or) payment, for the period establishes the term of restriction of implementation by the insurer of compensation of damage suffered in nature:

up to three months if the number of the revealed violations regarding obligations on recovery repair, including obligations on its organization and (or) payment, makes no more 0,5 of percent from total number of compensations of damage suffered performed by the insurer for the period in nature;

from three months to six months if the number of the revealed violations regarding obligations on recovery repair, including obligations on its organization and (or) payment, makes more 0,5 of percent, but no more than one percent from total number of compensations of damage suffered performed by the insurer for the period in nature;

from six months to nine months if the number of the revealed violations regarding obligations on recovery repair, including obligations on its organization and (or) payment, makes more than one percent, but no more 1,5 of percent from total number of compensations of damage suffered performed by the insurer for the period in nature;

from nine months to one year if the number of the revealed violations regarding obligations on recovery repair, including obligations on its organization and (or) payment, makes more 1,5 of percent from total number of compensations of damage suffered performed by the insurer for the period in nature.

4. The decision on restriction of implementation by the insurer of compensation of damage suffered made by Committee in nature shall be drawn up by the order of the Bank of Russia signed by the Chairman of the Bank of Russia (the vice-chairman of the Bank of Russia) containing:

information about the insurer (the complete and reduced (in the presence) trade names, registration number of entry in the unified state register of subjects of insurance case, the location, the primary state registration number, identification taxpayer number, license number on insurance implementation by the form activities "obligatory civil liability insurance of owners of vehicles" and date of its issue);

the name of the Federal Law and the reference to Article (Item, the subitem) based on which, (which) the decision on restriction of implementation by the insurer of compensation of damage suffered in nature is made;

the term of restriction of implementation by the insurer of compensation of damage suffered in nature.

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