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.
BMC or the Bonus-Malus coefficient is a coefficient that is used by insurance companies when calculating the insurance premium under a contract. Depending on the presence or absence of accidents, Bonus-Malus can be downward or upward. For the convenience of determining this coefficient, a special KBM table for compulsory motor liability insurance has been created.
| Class | KBM | Increase in price – Discount |
Number of insured events (payments) that occurred during the period of validity of previous MTPL contracts | ||||
|---|---|---|---|---|---|---|---|
| 0 | 1 | 2 | 3 | 4 | |||
| 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 |
Check KBM
What do the rows in the table mean?
The cost of the contract directly depends on what class of KBM will be applied under OSAGO.
The entire table is divided into several sections. The first column indicates the driver's class at the time of insurance. A driver who contacts a company representative for the first time to sign up for a policy automatically receives the initial 3rd class. It is from him that the calculation will occur, up or down.
The second line shows the discount, bonus-malus coefficient, as a percentage.
The last column indicates the presence or absence of claims during the insurance year.
How to use the table
The table is very easy to use. To determine the coefficient, you only need to know: what class was at the time of insurance and how many accidents occurred during the validity of this contract. The second meaning is simple, since every driver knows whether an accident has occurred or not. The first value can be found out from the insurance company or on the page.
To verify, you must enter: full name, date of birth, series and driver's license number. After entering personal information, verification will occur automatically.
In order to personally find out the coefficient for the start of insurance, you must contact the office of the company where the contract was drawn up. You must have a passport, a signed contract and a driver’s license with you. The bonus-malus check takes no more than 10 minutes.
After you find out your class, you need the 2019 KBM OSAGO table to determine the value. In the first column of the table you need to find your class. The second column will reflect the discount, or increasing factor, that was used when calculating the premium under the contract. Next, the bonus malus for the next year is determined. If there are no payments, he moves down one line in the table. If there were accidents, he moves up the table, depending on the accidents.
An example of calculating the KBM from the table
Here are two examples for your attention. In the first case, the driver drove for a year without any losses, in the second the driver had accidents. Let's look at how the driver class KBM table works in the absence and presence of insured events.
Sergey Petrovich Ivanov contacted the insurer on November 11, 2015. At the time of execution of the contract, the driver was assigned class 9 of the KBM, namely a 30% discount on the base tariff under the policy. It turns out that the client has already used the services of the insurance company more than once and each received 5% for an accident-free ride.
Example #1: No accidents
A year later, Sergei Petrovich again turned to the insurance organization to obtain a new contract. As before, the client had no accidents, and the employee provided a reduction bonus for an accident-free year. To determine this, she used the “Bonus-Malus” table according to OSAGO.
Sergei Petrovich was in 9th grade, moving along this line to the right, in the table, the insurance agent looked at the new class, with the number of insured events “0”. After 9 comes 10, which corresponds to a discount of 0.65 or 35% to the final cost of the insurance contract. It turns out that under the new contract he will receive a discount of 35%.
Example No. 2: There are three accidents
A year later, Sergei Petrovich again turned to a representative of the insurance company to draw up a new contract. Unfortunately, over the past year the client had 3 accidents that were his fault. In this regard, the client did not expect a good discount.
Sergei Petrovich was in 9th grade. Moving along the line, you need to look at the new coefficient, which is assigned to the driver who has had 3 accidents. The new class that an emergency driver receives is 1 or an increasing factor of 1.55. It turns out that the client must pay an increased insurance premium.
KBM with unlimited insurance
If a policy has been issued that provides for an unlimited number of persons allowed to drive a vehicle, then the question arises: bonus-malus class, how to find out? In this case, the bonus is calculated according to the owner of the car.
The coefficient for the owner is determined in the same way as for the driver. The only thing worth taking into account is that the discount on a car by owner is assigned to a specific car and does not apply to others.
For example, you have signed a contract for a VAZ 2110 car for several years in a row, without accidents, and have earned the maximum class of 50%. When purchasing a new car, Kia Ria, subject to an unlimited number of persons, according to OSAGO, you will be assigned an initial indicator of 3. It turns out that a new car means a new system of discounts.
The price of an MTPL policy depends not only on the power of the vehicle, driving experience, age and place of residence of the driver, but also on how carefully he drives on the road. Car owners who do not get into accidents (at least through their own fault) can count on a MTPL discount of up to 50%. But those who are often at fault for road accidents will pay 2.5 times more for insurance. Exactly how much the discount or premium will be depends on the bonus-malus ratio (BMR). So, what are the rules for calculating KBM?
Discount or penalty?
KBM is otherwise called a discount for accident-free driving. If the driver has never caused an accident over the past year, it means that the insurance company did not have to spend money on For this, the client can be encouraged and sell him insurance at a discount for the next year - provide a bonus.
If the driver got into an accident, the insurer had to fork out payments. And in order to compensate for its costs and at the same time encourage the would-be driver to be more careful on the road, the insurance company, by renewing the policy, will increase the price of compulsory motor liability insurance and provide malus.
What accidents are taken into account?
To begin with, we note that not every accident affects the calculation of the CBM. OSAGO is not property. Therefore, the calculation takes into account only those accidents in which the insurer had to make an insurance payment for its client.
If the driver is not to blame for the accident, or the incident was not registered with the traffic police, or the issue was resolved according to the European protocol, then this does not threaten the car owner with an increase in the cost of compulsory motor liability insurance.
Bonus-malus odds table
To determine the coefficient, the following KBM calculation table is used.
Allowances and discounts | Bonus-malus coefficient | Source class | New class |
||||
0 fear. payments | 1 fear. pay | 2 fear. payments | 3 fear. payments | 4 or more insurance payments |
|||
The first two columns indicate the class at the beginning of insurance and the corresponding coefficient. The remaining columns of the table allow you to determine how the class and BMC will change in the presence or absence of accidents.
The column titles indicate the number of cases in the past period in which compensation was paid. Accordingly, the first column with the number 0 means that there were no accidents, and the fifth, with the number 4+, indicates that the person was involved in an accident more than four times. The numbers and letters in the body of the table show how the OSAGO class changes depending on the number of accidents on the road due to its fault.
The calculation of the KBM is carried out according to the following principle. One is subtracted from the coefficient value and the result is multiplied by 100%. When a person purchases MTPL for the first time, he automatically receives class 3 with KBM 1. Such a driver pays 100% of the cost of insurance - without any discounts or surcharges.
If the BMR is determined at the level of 0.9, then it turns out: (0.9 - 1) * 100% = -10%. This means that the driver is entitled to a 10% discount.
If the coefficient is 2.45, then: (2.45 - 1)* 100% = 145%. The cost of the policy increases by 145%, that is, the car owner pays 2.45 times more for insurance. This is the punishment for creating emergency situations on the road.
How to determine the coefficient from the table?
Before calculating the CBM, or rather, discounts or allowances in accordance with the insurance history, you need to determine the driver’s class in order to know which coefficient to apply.
Let's say a car owner recently received a license, bought a car and came to apply for compulsory motor liability insurance. He is assigned a standard 3rd class. A year passed and he came to renew his insurance. The employee looks at the insurance history and finds out that the client had no accidents in the past year.
The table shows that in the absence of an accident, after the expiration of the annual insurance period, the driver moves to class 4, and his coefficient decreases from 1 to 0.95. When renewing the contract, the car owner can pay for insurance with a 5% discount. Next time, when applying for compulsory motor liability insurance, the insurer will already be guided by the line of the table corresponding to the 4th class.
If it turns out that during this time there was one accident due to the driver’s fault, then his class will change from 3rd to 1st, and the KBM will increase from 1 to 1.55. For insurance for the new year you will have to pay 55% more. Further, the calculation of the KBM will be made on the basis of the line corresponding to the 2nd class. Only after two years a person will be able to return to 3rd class and start earning a discount.
If the driver ends up in class M, it will take him a full five years to reach the standard 3rd class again.
If several people are included in the policy, then the discount or premium is determined by the worst of the coefficients.
How to find out your coefficient?
It is extremely rare that KBM is indicated in an insurance policy. Therefore, in order to determine your MTPL class and, accordingly, the size of the discount or premium, you will have to contact the insurer, calculate the BMR yourself using a table or use the RSA database.
When requesting a driving class, the insurance company is obliged to provide a certificate within five days in Form No. 4 indicating all the necessary information. This document will be useful if the car owner plans to change insurer.
On the RSA website, to find out the coefficient, you need to go to the “OSAGO” section and click on the “Information for policyholders and victims” tab. Among other information services you will find the determination of the coefficient. To obtain information, simply enter your full name and driver’s license number in the form that opens.
So we learned what KBM is, why it is needed, and how to calculate it.
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.