Sooner or later, every motorist faces the need to take out an insurance policy. This can be either compulsory motor third-party liability insurance, without which you cannot drive on public roads, or voluntary comprehensive insurance, designed to protect your property. At first glance, it may seem that one of them is enough, but in practice, the situation is much more complicated. These products have different legal statuses, purposes, payment principles, and even approaches to determining liability.

Car insurance in Uzbekistan is developing, insurance companies offer a variety of packages and conditions, and it is important for car owners to understand what exactly they are paying for. A lack of understanding can result in both excessive expenses and serious losses in the event of an accident. That is why more and more drivers are interested not only in the cost of policies, but also in their coverage, the logic of compensation, restrictions and the nuances of registration.

The legal aspects should not be forgotten either: having motor third-party liability insurance is a legal requirement, and not having a policy entails a fine and the risk of personal financial liability. CASCO, on the other hand, is a voluntary measure of protection that drivers choose at their own discretion. But does that make it less important? Let's take a look at the differences between CMTPL and CASCO and in which cases one option is more advantageous than the other.

What you need to know about OSAGO

A motor third-party liability insurance policy, officially called OSGOVTS, is mandatory for all car owners. Its main function is to protect the interests of third parties in the event of a traffic accident. This means that the insurance company will cover the damage caused to the victims of the accident, but will not compensate the person responsible for the accident.

The main feature of OSAGO is its universality. Regardless of the make of the car, the driver's experience or the region of use, every car owner is required to have a valid policy. This allows the state to minimise the social and property consequences of road accidents, and drivers to avoid serious financial consequences if they are responsible for an accident.

MTPL insurance can be taken out for a period of six months or one year. Failure to have a policy not only results in a fine, but also serious expenses if an accident occurs. It is important to remember that in the absence of MTPL insurance, it is the driver who is obliged to compensate for all damage caused from their own funds.

What does the OSAGO policy cover?

• Protection of third parties in the event of a traffic accident. Compensation for damage to injured pedestrians, passengers and other drivers;
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• Fixed payment limits. Up to 40 million soums: 26 million for damage to health, 14 million for damage to property;
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• Flexible rates. In Tashkent — from 56,000 to 168,000 soums, in the regions — cheaper;
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• The procedure for receiving payments. With the participation of the Traffic Police or according to the Europrotocol;
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• Payment restrictions. The policyholder and their car are not covered by insurance.

After registering a traffic accident, you must comply with the formalities: call the SBDD employees or draw up a Europrotocol, collect documents and contact the insurance company. If all conditions are met, the application will be reviewed within 15 days. Payments are made strictly within the established limits. If there are several victims, the compensation is divided between them proportionally.

It should not be forgotten that MTPL will not protect the car owner from the cost of repairing their own car. Therefore, despite its mandatory nature, it is only a basic level of protection that needs to be supplemented in a number of cases.

Voluntary protection with CASCO

CASCO is the second pillar of car insurance. Unlike compulsory motor third-party liability insurance, this policy is taken out at the driver's discretion. The main difference is that it covers the damage to the policyholder, not to third parties. This means that the insurance company will pay compensation even if the driver is at fault for the accident.

CASCO is much more flexible in terms of conditions. The driver can choose a product with the desired level of coverage, term and cost. The policy can be issued for several months or for a year. However, it is worth considering that insurers carefully analyse the driver's history. Frequent accidents, traffic violations or the use of the car as a taxi can lead to increased costs or refusal to issue a policy.

CASCO protects not only in the event of collisions. It covers risks such as theft, falling trees, fire, flooding and even damage to the car by unknown persons. That is why it is chosen by owners of new, expensive or leased cars, where even minor damage can result in significant costs.

What is included in a standard comprehensive insurance policy:

• Full property protection. Payments for repairs or loss of a car regardless of fault in an accident;
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• Coverage of various risks. Theft, natural disasters, vandalism, falling objects;
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• Additional services. Tow truck, damage assessment, roadside assistance;
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• Price depending on many factors. Condition of the car, driver's experience, accident history;
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• Possibility of discounts. For accident-free driving and good insurance history.

CASCO compensates the owner for damage even if the CTP insurance limit of the party at fault has been exhausted. And if there is a court decision, subrogation is possible — when the insurance company itself recovers the damage from the party at fault.

A CASCO policy creates a sense of confidence on the road. This is especially important in large cities, where the risk of damage is higher. At the same time, it is important to read the contract carefully and clarify which cases are excluded from coverage so as not to face an unexpected refusal to pay.

The main difference between CASCO and OSAGO

At first glance, it may seem that motor third-party liability insurance and comprehensive insurance are simply two types of the same service. But this is not the case. These insurance products have fundamentally different logic and objectives. Motor third-party liability insurance is about liability, while comprehensive insurance is about property protection. One protects others from you, the other protects you from others and external factors.

It is important to understand that in the event of an accident, it is MTPL that will cover the damage to the victims, while CASCO can compensate for losses above the limit or in exceptional cases. Together, these policies provide comprehensive protection that eliminates financial losses in most road situations.

Comparative parameters of CASCO and OSAGO:

• Mandatory. OSAGO is mandatory, CASCO is not;
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• Protection. OSAGO covers third parties, CASCO covers your own car;
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• Payments. OSAGO pays the victim, CASCO pays the policyholder;
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• Coverage. MTPL — traffic accidents, CASCO — traffic accidents, theft, natural disasters, etc.;
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• Price. MTPL — from 40,000 to 168,000 soums; CASCO — individually;
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• Limits. MTPL — up to 40 million soums; CASCO — within the market value of the car;
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• Exclusions. In MTPL — minimum, in CASCO — depend on the product.
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If your car is inexpensive and you are a careful driver, MTPL may be sufficient. But if you drive a new car, take good care of your property and want to avoid stress in the event of an accident, CASCO is a must. This is especially true in cities, where the likelihood of minor collisions is higher. Essentially, it is a choice between ‘mandatory’ and ‘for yourself.’ But in difficult situations, it is voluntary insurance that becomes the factor that saves you from major losses.