The changes envisaged by the new law are of great interest to drivers. The Ministry of Justice of Ukraine has provided detailed explanations of the main innovations that affect both insurers and car owners

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The new law of Ukraine “On Compulsory Insurance of Civil Liability of Vehicle Owners” (CIVCL) has a significant impact on the auto insurance system in Ukraine.

It is intended to increase the level of protection for victims of road accidents and to stimulate the development of the motor third party liability market. The main changes provided for by the law affect both policyholders and insurance companies.

Let's take a closer look at what innovations await drivers.

1. Strengthening the protection of victims of road accidents

One of the key changes is a gradual increase in the maximum sum insured to compensate victims of road accidents. This will bring Ukrainian standards in line with European ones, which will significantly increase the level of protection for road accident victims. Drivers can be sure that in the event of an accident, they will receive adequate compensation.

2. Abolition of state regulation of policy prices

One of the most important innovations is the abolition of state regulation of the cost of motor third party liability insurance policies. Now, the price of insurance will be determined individually for each driver, taking into account his or her insurance history. If a driver has not had an accident or caused damage in the past, he or she will be able to count on a lower price. 

3. Mandatory direct settlement of losses

Another important change is the introduction of a mandatory model of direct settlement of losses. The victim of an accident will be able to apply for compensation to his or her own insurance company, not to the insurer of the culprit. 

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4. A new approach to calculating insurance payments

The innovations also concern the process of calculating payments. For cars that are less than 5 years old, the cost of repairs will be calculated without taking into account the wear and tear of parts. This means that new spare parts authorized by the manufacturer will be used for repairs. For older cars (over 6 years old), similar spare parts will be taken into account.

In addition, the insurer is obliged to offer the victim three options for service stations located no further than 150 km from the victim's place of residence.

5. Abolition of the deductible

The new legislation cancels the application of deductibles in CMTPL contracts. Drivers will no longer be obliged to pay for part of the losses themselves. This change makes insurance more transparent and accessible to customers, which will increase confidence in the system.

6. Benefits for certain categories of citizens

The new law retains the 50% discounts on motor third party liability insurance for certain categories of citizens, such as combatants, injured participants of the Revolution of Dignity, people affected by the Chernobyl disaster, pensioners and people with group I disabilities. 

Please note! Reductions in the cost of the insurance policy for such categories of citizens are applied exclusively to cars that are not used for the purpose of providing paid passenger or cargo transportation services and have an engine capacity of up to 2500 cm3 or a power of up to 100 kilowatts (for electric cars).

7. Cancellation of the limit under the European Protocol

The Law cancels the limit of insurance indemnity under the European Protocol. However, the National Bank of Ukraine reserves the right to set such a limit in the future. For the time being, this gives drivers more freedom to use this mechanism in case of minor accidents.

The new law on motor third party liability insurance is aimed at improving insurance conditions for all road users. It increases the level of protection for victims, makes the insurance process more transparent and fair, and takes into account the individual characteristics of each driver. 

At the same time, the new conditions will contribute to the development of the motor insurance market in Ukraine and increase the level of trust in it.

How is it profitable to take out a car insurance policy?

If you are looking for a convenient way to take out a car insurance policy, Visit Ukraine offers excellent conditions for choosing and buying an insurance policy. Here you can take out insurance from leading insurance companies, including TAS.

First of all, the VU portal offers a convenient online service that will allow you to take out insurance in a few minutes. You can also choose a service at favourable rates on our website.

Buying motor third party liability insurance at Visit Ukraine is not only convenient, but also profitable. We work only with trusted insurance companies, which guarantees the reliability of your insurance and confidence in the future. Choose the best for your car and travel with confidence!

We remind you! The NBU and the Ministry of Economy have recently announced a draft law on the war risk insurance system. Read here to find out what the document provides for and what its role is.

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