OSGOP — carrier liability insurance for passengers

What OSGOP is

OSGOP is compulsory insurance of a carrier's civil liability for harm to the life, health and property of passengers. It is governed by Federal Law No. 67-FZ of 14 June 2012. If a passenger is killed, injured or loses luggage during carriage, the carrier's insurer pays — quickly and within the amounts set by law.

Who must insure

The law applies to passenger carriage by any mode of transport covered by Russian transport charters and codes: buses, trolleybuses and trams, railways, sea and inland waterway transport, and aviation. Carriage by passenger taxi also requires a policy — the Code of Administrative Offences sets a separate fine for not having one.

Exceptions:

• the metro — the law sets a separate procedure for compensating harm to metro passengers;
• modes of transport whose owners insure their liability under the hazardous facilities law (225-FZ, OSOPO).

The duty lies with the carrier — a company or sole trader carrying passengers under a contract of carriage. For air transport the duty is repeated in Article 133 of the Air Code; see aviation insurance. If a company transports its own staff in company vehicles, check with the insurer whether such trips fall under the law.

Sums insured and payouts

The contract states the sums separately for each risk, and they do not change during the contract term. No deductible is allowed for passengers' life and health.

• If a passenger dies, the beneficiaries receive RUB 2,000,000, and up to RUB 25,000 is paid to whoever covered the funeral expenses. On a beneficiary's request the insurer makes an advance payment of RUB 100,000 within three working days.
• For injuries, the payout is calculated using official tables based on the nature of the harm.
• For property, unless greater damage is proved, harm is assessed at RUB 600 per kilogram of luggage and RUB 11,000 for other property per passenger.

Penalties for having no policy

Article 11.31 of the Code of Administrative Offences (KoAP):

• carrying passengers without an OSGOP contract — a fine of RUB 40,000 to 50,000 for officials and RUB 500,000 to 1,000,000 for legal entities (Part 1);
• failing to inform passengers about the insurer and the contract — RUB 1,000 to 3,000 for officials and RUB 10,000 to 30,000 for legal entities (Part 2);
• carriage by passenger taxi without OSGOP — RUB 5,000 for individuals, RUB 25,000 for sole traders and RUB 40,000 for legal entities (Part 3).

Without a policy the carrier compensates passengers out of its own funds, and claims for death and injury can be substantial.

What drives the price

OSGOP insurance rates are set by the Bank of Russia. The final premium depends on:

• the mode of transport and type of service — urban, suburban, intercity, taxi and so on;
• the volume of carriage — passenger traffic or fleet parameters declared by the carrier;
• the factors provided for in the Bank of Russia rates.

Understating declared passenger traffic is a bad idea: it breaches the contract terms and leads to disputes at claim time.

How to buy and choose an insurer

• The insurer must hold a Bank of Russia licence for OSGOP. Insurers writing OSGOP are united in the National Union of Liability Insurers (NSSO), and contract data is sent to its automated information system.
• The contract is concluded for at least one year; on inland waterways — for at least the navigation season.
• Check how the insurer accepts passenger claims in the regions on your routes: if it has no office where the victim lives, the law allows the victim to apply to any insurer operating in the region.
• Display information about the insurer where passengers can see it: in the vehicle, on the ticket, on the website.

See companies under Insurance companies and request a quote via the request form.

How claims are paid

1. The passenger or beneficiary files a claim with the insurer on the Bank of Russia form, with documents on the victim and the circumstances. Documents can also be filed electronically via the insurer's website.
2. Within 30 calendar days of receiving all documents the insurer pays compensation or sends a reasoned refusal.
3. A late payment incurs a penalty of 1% of the amount per day; a late reasoned refusal incurs a financial sanction of 0.05% of the sum insured per day.

OSGOP payouts are independent of compulsory social insurance benefits. If a passenger's health deteriorates, they may ask for the payout to be recalculated.

Common mistakes

• The policy does not cover every type of service the company provides — for example, taxi or charter trips.
• A new route or additional buses are not added to the contract.
• No insurer information for passengers — a separate fine under Part 2 of Article 11.31 KoAP.
• A gap between contracts at renewal.
• Relying on OSGOP alone: fleet vehicles need separate OSAGO and KASKO, and drivers need accident insurance.