Who is involved in insurance
An insurance product is created by an insurance company — an organisation licensed by the Bank of Russia. It drafts the insurance rules, calculates rates, forms reserves and pays claims. Each company has its own rules, so terms and prices for what seems to be the same type of insurance differ noticeably.
A company may sell insurance itself or through intermediaries. The Russian Law "On the Organisation of Insurance Business in the Russian Federation" names two types of intermediaries — insurance agents and insurance brokers.
Insurance agent
An agent is an individual, sole proprietor or company acting on behalf of and on the instructions of the insurer under a contract. Banks, car dealerships and travel companies often act as agents. Many agents work with several insurers at once and can offer a choice of policies from different companies.
- Pro: convenient — the policy is arranged where you buy a car, a loan or a holiday.
- Con: the agent represents the insurer, and the agent's fee depends on sales.
Insurance broker
A broker is a professional intermediary licensed by the Bank of Russia. A broker may act in the policyholder's interests: study the risks, run a tender among insurers, negotiate the contract terms and support claims settlement. Brokers are especially in demand in corporate insurance and reinsurance.
Buying direct
You can go to the insurer's office or website. This is convenient if you have already chosen a company. But an employee of one company will only tell you about its products — you will have to compare on your own.
Comparing in one place
A separate format is services where you can compare offers from several insurers. On polisre.ru, for example, you will find descriptions of insurance types and profiles of insurance companies, calculators are available, and online travel insurance is arranged through Polis Re's partner, the Cherehapa service; the policy is issued by the insurance company you choose.
Why reading the insurance rules matters
The insurance rules are the part of the contract most often left unread because of their length and small print. Yet they contain the conditions that most often lead to disputes:
- exclusions — events that are not recognised as insured events, for example driving by a person not authorised under the KASKO (motor hull) contract;
- deductible — the part of the loss the insurer does not cover;
- requirements for keeping property — say, parking the car overnight only in a guarded car park;
- method of compensation — repair at the insurer's service station, calculation, wear and tear;
- deadlines for notifying an insured event and the list of documents.
Under the Civil Code of the Russian Federation, the rules are binding on the policyholder if the contract expressly refers to them and the rules are set out in the same document as the contract, on its reverse side or attached to it. Delivery of the rules is confirmed by an entry in the contract — so get them before signing and read them.
How to choose an intermediary
- Check their status: an agent should have a power of attorney or contract with the insurer, a broker should have a licence listed in the Bank of Russia directory.
- Ask for several offers on the same terms and a written comparison of key points.
- Find out who will help you when a claim occurs and how to reach them.
- Pay the premium only to the account details stated in the contract and keep proof of payment.
- Check an OSAGO policy in the RSA database; for other types, if in doubt, ask the insurer for confirmation.
Common misconceptions
"It costs more through an intermediary"
Not necessarily. Rates for voluntary types are set by the insurer, and the price via an intermediary and at the company's office is often the same. An intermediary saves you time on comparison and can point out where the terms are broader for the same money.
"If I have been with one company for years, it is the best choice"
Habit is not the same as quality. Market conditions change, and once a year it is worth comparing your renewal with alternatives.
"I will figure it out myself"
For a single OSAGO policy, quite possibly. For business property, employee health insurance or liability it is better to involve a specialist: mistakes in how risks are worded cost more than the time spent on a consultation.
Insurance types are collected in the for individuals and for business sections, company profiles are in the insurer catalogue, and you can ask Polis Re specialists a question by submitting a request.