Problems of determining KBM (discounts for break-even insurance). Driver class according to compulsory insurance. How to calculate the bonus-malus coefficient (kbm) yourself. really useful KBM 13 what a discount
Currently, almost all car owners know that when calculating compulsory motor liability insurance, the so-called bonus-malus coefficient (“bonus-malus” is translated from Latin as “good-bad”) or Kbm is used. Some simply call it a “discount”, forgetting that KBM takes into account not only break-even (bonus), but also the presence of payments due to the fault of the policyholder (malus - a fine for careless driving). Also, when defining KBM, the term “Insured Class” is used.
KBM for each driver is an individual value and depends on his insurance history. For clarity, we present a table that regulates the definition of CBM and is the same for all insurance companies. It is designed in such a way that knowing the class of each driver at the conclusion, it is possible, depending on the number of accidents that occurred due to his fault during the year, to determine what KBM he will receive when insuring for the next year.
Table 1. Bonus-malus class.
the table will scroll to the right| Initial class KBM (under previous agreement) | KBM value | KBM class under a new contract upon expiration of the previous contract, after | ||||
|---|---|---|---|---|---|---|
| 0 insurance payments | 1 insurance payment | 2 insurance payments | 3 insurance payments | 4 or more insurance payments | ||
When a driver enters into a MTPL car insurance contract for the first time, he is assigned class 3 (Kbm = 1). Then, for each accident-free year, he is given a 5% discount, and his class increases. If accidents occur due to his fault, the “class” decreases, and the Kbm, accordingly, increases.
- The policyholder had Kbm=0.85 (6th class, 15% discount). It was his fault that 1 accident occurred, and the victim was paid. Next year, when concluding an MTPL agreement, it will have class 4 and Kbm = 0.95 (5% discount).
- A novice driver with Kbm=1 became the culprit of an accident in the first year of driving. In the second year of insurance, instead of a 5% discount, he receives an increasing Kbm = 1.55. And if he again gets into an accident due to his fault, in the third year of insurance the policy will be calculated for him with Kbm = 2.45.
From the history of KBM
From the introduction of compulsory motor vehicle insurance in 2003 until 2008, the class of the insured was “tied” exclusively to the vehicle. That is, when a driver purchased a new car and came to take out an MTPL policy, he automatically lost all his discounts. The situation turned out to be absurd: the concept of “insurance history” did not exist, and KBM did not fulfill its main function - to encourage careful driving and stimulate accident-free behavior with “bonuses”. In March 2008, the experience of other countries was nevertheless taken into account and the “bonus-malus” system changed radically. From that moment on, the class began to be assigned to each driver individually, retaining it when purchasing another car. And now, even if a driver previously included in someone else’s policy becomes a car owner for the first time, he has every right to count on a previously “earned” discount.
How to determine KBM if several drivers are included in the compulsory motor liability insurance policy or the insurance is issued “without restriction of persons allowed to drive”?
If several people fit into the policy, the Kbm to calculate its cost is taken for the driver whose Kbm is maximum. Therefore, when a driver with little experience joins a company of reputable and experienced driving experts, you need to be prepared that the price of insurance will increase significantly. Few people understand another important point. In the event of an accident, the KBM increases only for the person who was driving the car at the time of the accident and was found guilty by the traffic police inspectors. The rest of the drivers included in the insurance safely retain their discounts. And if the culprit is not included in the policy next year, the total discount on it will, as expected, be 5% more.
If the policyholder draws up a contract on the condition that any drivers are allowed to drive the car, the CBM is determined by the owner of the vehicle. It doesn’t matter who the owner is, it could be a grandmother in the village who has never held a rudder in her life. It’s just that with an “unlimited” MTPL policy, you won’t “become attached” to anyone other than the owner to determine the CBM. The policyholder does not count, because the policyholder is the person who pays the insurance company money and determines the terms of insurance.
KBM problems
When changes were made to the Law on Compulsory Motor Liability Insurance (MTPL) relating to KBM, at first it seemed that compulsory car insurance in Russia had become more civilized: conscientiousness behind the wheel was encouraged, and indiscipline was punished with rubles. Everything is fair. But it turned out that reality is far from perfect.
In theory, everything looks great. Any car owner is able to at least approximately determine his CBM, based on his own MTPL experience: the number of years of insurance, the number of insured events and the table given above. What about company employees, insurance agents and brokers? The only ideal situation for determining KBM is when the driver has been insured with the same company for all years (or at least the last few years), and the database contains any information about him. If a person comes from another insurance company, problems arise with KBM.
On the one hand, everything is simple - according to the previous policy, you can always calculate last year's discount and add another 5%. But where is the guarantee that the previous company did not pay for the driver? Should I take his word for it? Not serious. As long as insurance companies strenuously keep data on their policyholders secret and stubbornly refuse to create a single database, the confusion with KBM will continue. Even for a persistent violator of traffic rules, who every now and then causes trouble for someone on the road, it costs nothing to run from one company to another every year and, with honest eyes, demand another discount for being accident-free.
The situation described is, of course, extreme, but hiding a couple of labor payments is not an option for anyone today. Fortunately, there are still too many insurers involved in compulsory motor liability insurance, even despite the fact that every year dozens of companies leave the car insurance market forever. And it happens that a car owner is ready to present a break-even certificate, rightly claiming a discount, but, alas, his insurance company has lost its license. Another policyholder is not even interested in any “bonus-maluses”; he buys a new car every year and insures himself at the dealership, just like for the first time, without claiming anything.
Another common occurrence is when a driver with, say, 6 years of experience is included in the policy, and the total insurance discount is 40%. Well, it’s obvious that there’s no way a person with such experience can get a 40% discount, or a maximum of 25%. But there are very few policyholders who have class 1 or the lowest - M, although there are plenty of accidents on our streets. And all these facts together are called disorder.
However, at present, serious insurance companies have begun to treat “outside” policyholders more harshly. Some require you to bring a certificate from the previous company that the year was accident-free, others provide a discount only if the policyholder additionally issues a DSAGO, and still others come up with some other measures. If the client is not going to go for a certificate, does not want compulsory DSAGO, does not agree to be insured without a discount, he is simply told “goodbye”. But large companies follow this policy. Small insurers who rely exclusively on compulsory motor liability insurance (and in the future, as a rule, go bankrupt) are ready to grab hold of anyone, and therefore intensively lure clients to them with maximum discounts.
It should also be noted that the reason to avoid multiplying odds whenever possible lies not only in the Russian habit of deception. If MTPL insurance in our country “worked” fully, without failures, delays and constant underestimation of payments, policyholders would have no reason to treat insurers with disrespect.
In custody
From all of the above, it is obvious that the “bonus-malus” system in our country practically does not fulfill the task assigned to it by the Government - to more objectively assess the degree of risk and the insurance tariff for compulsory motor liability insurance. The human factor still remains the main criterion for determining KBM for each specific driver. One client is convincing beyond belief, the other looks like a fraud. Some agents give out discounts with or without reason, just to insure and receive a commission, while others, on the contrary, pretend that the concept of KBM does not exist at all and actively “catch” clients who have no idea about it. And so on.
Currently, the decision to create a Unified Database for Compulsory Motor Liability Insurance has finally been adopted by law, and by the end of 2012, insurance companies are required to enter information about all their clients into a single database. If this is implemented, a common base for all insurers will begin to function in 2013. Perhaps then problems with determining KBM will forever be a thing of the past.
Due to the fact that recently there have been big problems with the purchase of compulsory insurance policies, you can buy compulsory motor liability insurance online.
Before purchasing, we recommend that you calculate the cost of an MTPL policy using a 2020 calculator. Our calculator will not only calculate the price of the policy for you, but will also show you the most advantageous offers from various insurance companies.
An example of calculating the KBM for accident-free driving
With accident-free driving and no insurance payments, the driver’s class increases by one point every year. In this case, the BMF decreases according to the table.
For example, a class 6 policyholder has a coefficient of 0.85. After a year of accident-free driving (only accidents that occurred through his fault are taken into account), he will receive category “7” with a multiplier of 0.80.
An example of calculating KBM in case of accidents
Calculating the KBM in the presence of accidents is just as easy. If a motorist has four or more traffic accidents in a year, then the class drops to the lowest point “M”. If one to three accidents are initiated, then the KBM table is used to calculate the category.
For example, a class 10 policyholder with a multiplier of 0.65 caused two accidents in one year. As a result, his category dropped 7 points to “3” with a coefficient of 1.
The class is downgraded only in cases where the driver is at fault in an accident.
How does the KBM affect the amount of contributions?
The Bonus-Malus coefficient can both reduce and increase the cost of compulsory motor liability insurance.
This happens as follows. The basic cost of the contribution is multiplied by the value of the KBM. When the coefficient is greater than zero (categories “M” and 0-2), the price increases. When it is less than zero (categories 4-13), the driver is given a discount. In third class, the base fare does not change.
How to calculate KBM with unlimited insurance
“Bonus-Malus” with open insurance, that is, without restrictions on the number of drivers, is equal to the value of the car owner’s BMI. It changes according to the same rules as for a regular policy, but the discount applies only to a specific car.
Let's say you are the owner of a Nissan car and have issued an open MTPL for it. After a few years you got category 10 and a 35% discount. Despite the fact that people with other classes - smaller or larger - can also drive vehicles, your indicator is used to calculate the cost of contributions. But when buying a second car, for example, Renault, you will have to earn a discount “from scratch,” from third class, regardless of what category the Nissan had.
At the same time, another special multiplier is used for open MTPL. In 2019 it is 1.87. This means that unlimited insurance will be 80% more expensive than regular insurance (not taking into account other factors).
Every car owner must purchase a civil liability policy - MTPL. It is mandatory and is always required, but its price depends on many factors. The calculation takes into account the bonus-malus coefficient, which directly affects the cost. Its definition takes into account accident-free driving: if no accidents occur due to your fault, every year you receive a larger and larger percentage of the discount, but accidents lead not only to a decrease in the percentage, but even to a significant increase in price. The table is used for independent calculation of KBM OSAGO.
Basic coefficient
- The KBM OSAGO 2017 table is not useful in the case of transit insurance. In this case, when the vehicle proceeds to the place of technical inspection or to the place of registration, the coefficient is equal to one.
- If the vehicle is registered in another state, the coefficient will also be equal to one.
- The KBM OSAGO calculation table will be relevant after at least one year of insurance. But for new car owners who enter into a contract for the first time, the coefficient will also be set at the base level.
Features of the definition of KBM
Motor insurance OSAGO KBM, the definition table of which will be given below, has its own characteristics. Firstly, the data is contained in the RSA database, where the calculation takes place, due to which the CBM is determined regardless of the insurance company and will be calculated under normal conditions even when switching to another insurance company.
Calculation of a new coefficient for one driver
The new coefficient is calculated only after the expiration of the insurance policy, the duration of which is equal to a year. Changes will not be made to the existing pole even in case of accidents. It will be taken into account only when concluding a new one and determining its cost.
Calculation of odds for several drivers
If the vehicle is driven by several drivers, and they are included in the insurance contract, KBM will be determined by the driver with the worst class. This only affects the price, and the coefficient for other drivers is not lost and the KBM class according to OSAGO, the table for calculation, which is standard, will be determined according to the general rules. This statement is only true for a limited number of drivers. For unlimited, the situation is somewhat different, since the class is determined specifically by the owner of the car.
It is worth noting that the car does not participate in determining the coefficient. Therefore, it doesn’t matter how old your car is or what its history is, but only your personal statistics. It is also worth noting the case in which the contract will be terminated early. In this case, no discount is given even in the case of accident-free driving.
KBM OSAGO coefficient table 2017
There are two ways to find out your coefficient. You can simply use the online service, enter your full name, date of birth, as well as the series and number of your driver’s license. However, errors quite often occur both through the fault of the PCA database and the fault of the insurance company. As a result, the KBM according to your data may not be in the database or will be determined incorrectly, up to and including deprivation of the discount. For this reason, it is additionally worth using the table and determining the discount you are entitled to.
Let's look at an example of how to use the table correctly. Let's say you just bought your first car and entered into a compulsory motor liability insurance agreement for it. In this case, your base class is third, and the coefficient is equal to 1. Compliance can be checked by KBM OSAGO, the table is given above, it can be done quite easily. What class will you have when purchasing a new policy? The value will directly depend on the number of accidents over the past year. If they are not there, then you are required to be transferred to the next class the very next day after the expiration of the policy. This way you will move to level 4 and receive the first 5% discount.
What will happen if there was at least one accident? We look in the table at the column with the number 1. In this case, from third class you will be lowered to first, according to the table, but if there were more accidents, then you will be lowered to the lowest level to class M, which will cost 145% more. For all other classes, the scheme remains the same: we simply look at the number of insured events and determine the level to which we will be transferred.
Conclusion
As you can see, the KBM bonus-malus coefficient for MTPL, the table for which is given above, is determined quite easily. To do this, you just need to know your current class, which can always be found through online services, including the official RSA website. Simply enter your full name, date of birth, driver's license number and series. After receiving information about your current class, you can find it in the table and, according to insured events for the year, determine your next class.
Vehicle owners should understand that the cost of an MTPL policy depends on several factors.
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First of all, driving experience and the number of accidents in which the car owner has been involved due to his own fault (that is, cases in which insurance payments are made) are taken into account.
Today, to reduce the cost of insurance, you can take advantage of special discounts, which are calculated using the bonus-malus coefficient.
The KMB was created to encourage careful drivers who do not get into accidents. And also to punish those responsible for road accidents by increasing or decreasing the price of the insurance policy.
What you need to know
If a driver with a high level of driving takes out an MTPL policy, he is given a discount. It is calculated based on each year of accident-free driving.
Such discounts are called BMB or bonus-malus coefficient. Previously, this coefficient was applied to one specific machine.
This meant that if the car was sold, the discount was lost, i.e. it had to be “earned” again.
However, in March 2008, the situation changed, since the KMB began to belong not to the car, but to the driver, regardless of the vehicle he was using.
The discount on the purchase of the policy remains even when changing if the break before renewing the contract is less than 1 year.
Today you can find out the insurance history of any driver. To do this, you need to check the KMB against the database
To accrue KMB when determining the cost of a policy, compliance with certain rules and patterns is required, which is why insurance agents are not able to apply it at will.
Every driver and insurer needs to know and understand the algorithms for calculating the BMI and its features, namely:
| How is the formation of the KMB carried out? | Formation occurs according to the number of accidents. Each coefficient always corresponds to a driver class, from M to 13 |
| What does this coefficient depend on? | The risk factor directly depends on the number of accidents in which the car was involved, as well as on driving experience. Moreover, every year of insurance is taken into account |
| How is KMB applied? | The application of the KMB is carried out when calculating the cost of the MTPL policy and the current discounts for its purchase |
| What causes the coefficient to change? | Increase, decrease, save values. Saving the value of the BMP cannot happen, since a new calculation of the coefficient occurs every year. The only exception to this rule is those cases when the discount on the purchase of a policy is maximum. The change in the BMP depends on the number of accidents that occurred with the car during the year. Their number influences whether the BMP increases or decreases |
| How is the KMB calculated? | The calculation is made using the KMB OSAGO discount table |
It is important to consider that sanctions are applicable only when the car owner contacts the insurer with a request to receive.
If the driver, after an accident, independently eliminates its consequences and repairs the car at his own expense, then the price of the policy remains the same.
At the same time, the final cost of the MTPL policy depends not only on the bonus-malus coefficient, but also on other coefficients and base rates ().
It should be borne in mind that according to statistics, for every 100 policies sold, there are about 3 fake ones.
To reduce the possibility of purchasing an invalid policy, it is recommended to insure your vehicle with trusted organizations, for example, Rosgosstrakh.
Today, for the convenience of motorists, it is possible to conclude an MTPL agreement via the Internet.
Required terms
Commonly used definitions:
| TS | Vehicle. Used to move people and goods on roads over relatively long distances |
| Driver | The person driving the vehicle. If driving instruction takes place, the instructor is officially considered the driver. |
| Insurer | An organization that has the right to provide compulsory insurance to vehicle owners. Insurance is possible only if the insurance company has a license issued in the prescribed manner |
| Insurance case | A case that triggers the onset of civil liability of the vehicle owner due to damage to property, life or health of the victims. Involves insurance payments made by the insurer in accordance with the agreement “On Compulsory Insurance” |
| KMB | The “bonus-malus” coefficient, which affects the final cost of the MTPL policy |
Insurance companies use the following concepts:
Why is it needed?
To determine your own bonus-malus coefficient for the next year of insurance, the driver will need a visual table.
It is common to all insurance companies. Determining the BMP from the table is the simplest way to calculate it.
To do this, you only need to know the driver’s class and the number of insurance payments that occurred in 1 year.
Legal grounds
The actions of insurance agents are regulated by the Federal Law “On Compulsory Insurance”.
Any insurance company is obliged to enter driver data into the AIS when concluding any agreement.
This also applies to cases where the insurance history was formed in other companies.
The conclusion of an agreement on compulsory motor liability insurance occurs in a clearly defined manner ().
The rules for calculating the coefficient and its use are discussed in Article 9 of the Federal Law “On Compulsory Motor Liability Insurance”.
The establishment of the basic principles of insurance is fixed.
The amounts of insurance payments are fixed and determined according to.
How to determine KBM according to OSAGO using the table
To calculate the coefficient, you need to know the class assigned to the driver and the number of classes he was assigned to over the past year:
| If the driver registers for the first time | Then he is assigned driving class 3. The driver's class is determined by the first column |
| Next, you need to know the amount of insurance payments | What happened during the year |
| Knowing this data, you can begin calculating the KMB | To get an accurate result, you need to select a column that is suitable for the number of compensations and find in it the intersection with the row that displays the driver’s class. By determining the intersection cell, you can find out what class will be assigned to the car owner for the next year |
| The coefficient is determined based on the future class | Its value is located in the cell of the KMB column that intersects with the driver class row |
For 2020, the following table is used to calculate the KMB:
Meaning of strings
The table contains the following data:
- Driver class.
- Bonus-malus coefficient.
- The class that will be assigned to the driver when taking into account the number of calls to the insurance service to receive compensation for damage.
How to correctly use data for calculations
For each year of driving without accidents, the coefficient will decrease by 0.05, that is, the cost of the policy becomes less than 5% of the initial amount.
If a driver becomes the culprit of several at once per year, then in the table the class of the KMB under compulsory motor liability insurance decreases, and the cost of the policy, on the contrary, increases.
Calculation examples
To understand the convenience of the table, you can consider an example of calculating the size of the discount for a driver who is insured for the first time:
| To such a driver | Assigned class 3 |
| Let’s assume that this driver was not involved in a single accident during the year. | This means that the number of insurance cases is 0, that is, no insurance payments were made |
| Next, you need to find the column in the table | Suitable for the number of reimbursements to determine the driver class that will be assigned to him for the next year. For the selected case, the class will be 4 |
| Based on the identified class, the BMP value is found | To do this, a cell with a coefficient value corresponding to driver class 4 is determined. In the case under consideration, the BMF is 0.95 |
| The normal cost of the policy is 1 | When multiplied by 1 by 0.95, it turns out that the car owner will pay 95% of the cost of insurance. Insurance discount will be 5% |
As a second example, the KMP is calculated for a driver with 7 years of driving experience, during which he has never been involved in an accident.
| According to the table, driver class | Equal to 9 at the beginning of the 7th year of driving |
| Let’s assume that at the end of the year this driver was involved in 2 accidents | Being their culprit. In both cases, the driver claimed insurance payments. Number of refunds is 2 |
| It is necessary to determine the driver class for the next year | For the example under consideration it will be equal to 2 |
| According to a certain driving class | The coefficient is 1.4 |
| If the coefficient is greater than 1, then the amount of the MTPL policy will increase | To determine how much more the amount will be than the standard one (taken as 1), it is necessary to subtract 1 from the resulting BIC |
| 1,4 – 1 = 0,4 | As you can see, when paying for the next year of insurance, the driver will pay 40% more than he paid at the time of signing the contract for the first time |
KBM or bonus-malus coefficient is an indicator that determines the discount on the cost of an MTPL policy. People call it a discount for accident-free driving. The indicator may increase or decrease the cost of compulsory motor liability insurance depending on how accident-free the car was driven during the previous year of insurance.
How to use the table to calculate KBM?
The table for KBM calculations includes information about the MTPL class, the value of the coefficient that corresponds to a certain class, as well as information on how the number of accidents during the annual insurance period affects the MTPL class.
| Class | KBM | Increase in price | Number of insured events (payments) that occurred during the period of validity of previous MTPL contracts | ||||
| – | 0 | 1 | 2 | 3 | 4 | ||
| Discount | Class to be assigned | ||||||
| M | 2,45 | 145% | 0 | M | M | M | M |
| 0 | 2,3 | 130% | 1 | M | M | M | M |
| 1 | 1,55 | 55% | 2 | M | M | M | M |
| 2 | 1,4 | 40% | 3 | 1 | M | M | M |
| 3 | 1 | No | 4 | 1 | M | M | M |
| 4 | 0,95 | 5% | 5 | 2 | 1 | M | M |
| 5 | 0,9 | 10% | 6 | 3 | 1 | M | M |
| 6 | 0,85 | 15% | 7 | 4 | 2 | M | M |
| 7 | 0,8 | 20% | 8 | 4 | 2 | M | M |
| 8 | 0,75 | 25% | 9 | 5 | 2 | M | M |
| 9 | 0,7 | 30% | 10 | 5 | 2 | 1 | M |
| 10 | 0,65 | 35% | 11 | 6 | 3 | 1 | M |
| 11 | 0,6 | 40% | 12 | 6 | 3 | 1 | M |
| 12 | 0,55 | 45% | 13 | 6 | 3 | 1 | M |
| 13 | 0,5 | 50% | 13 | 7 | 3 | 1 | M |
Using the KBM table is very simple. First you need to know the KBM. This information is available on the website of the Russian Union of Auto Insurers (RUA), you can contact the insurance company or look at the KBM in the current policy (some companies indicate the class directly in the insurance). All other sources are considered unreliable.
If a citizen enters into a MTPL agreement for the first time, he is assigned class 3, for which the BMR is 1.00. Therefore, no discounts or surcharges apply.
Driver classes in the KBM table
The driver's class depends on the number of insurance payments made for the previous year of insurance due to his fault. If the accident was not registered by the State Traffic Safety Inspectorate, this will not affect the driver’s class in the KBM table, since the insurance company is interested in liability, not property.
Each insured event resulting in insurance payments lowers the driver’s class by 2-6 positions. For example, the driver’s initial KBM corresponds to the value 8. If one accident occurs, resulting in an insurance payment, the class will be reduced to 5, two accidents will lower the class to 2, and three or more will drop it to the lowest level. Class M means that the client is especially dangerous for the insurance company. In this case, the cost of the policy increases by 2.45 times.
How does the OSAGO class affect the discount?
The amount of discount on the cost of the policy depends on the MTPL class. Each year of accident-free driving entitles you to a 5% discount.
To determine what discount the driver receives, you need to do some simple calculations. You must subtract one from the coefficient value and multiply the resulting number by 100%.
For example, the driver’s class at the beginning of the annual insurance period is 11. It corresponds to a coefficient of 0.6. Thus,
(0,6-1)*100% = - 40%
Renewing insurance will cost 40% less.
An example of calculating the KBM from the table
We propose to consider an example of calculating the KBM using the table. Initial data: the driver enters into a MTPL contract for the first time and has committed 2 accidents in a year that resulted in insurance payments.
Since the driver has no history, he is assigned class 3, which corresponds to a value of 1. Having committed 2 accidents, the class is downgraded to M. When the contract is extended, the cost of insurance will increase by 2.45 times.
The desire to reduce the cost of insurance pushes some drivers to distort information. However, this is not recommended. If an insured event occurs, the fact of participation in an accident will certainly be revealed, and the insurance company will refuse to pay. You will have to eliminate the consequences of the accident at your own expense.