Insurance payments in case of an accident: how a motor citizen policy works and how much you can get under CTP in 2025

Have you been involved in an accident? It's time to work with insurers on a compulsory MTPL policy. Find out how CTPCI works, what are the terms of payments in 2025, how to get compensation in case of an accident, and how much you can expect

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According to Ukrainian law, every driver of a vehicle must take out compulsory motor vehicle insurance. Motor third party liability insurance (MTPL) is a Ukrainian insurance policy that compensates victims of road accidents. MTPL insurance works only on the territory of Ukraine, so it will not cover losses abroad. Below, we will explain how insurance works in the event of an accident with victims and guilty parties, as well as with third parties.

When does an insurance company compensate for losses under a motor vehicle liability policy?

If you are the culprit of a traffic accident but have a valid CTP policy, the insurance company will compensate the injured party for the losses. This includes covering the cost of repairs or full compensation for the victim's destroyed car, paying medical expenses in case of injuries, and compensation for damage to other people's property, such as a fence or road signs.

An insured event is an accident that results in your obligation to compensate another person for damages. The injured party is paid through the insurance company of the person responsible for the accident. However, starting from January 1, 2025, it will be possible to receive compensation from your own insurance company even in the event of an accident caused by an uninsured driver.

There are two ways to register an accident: with the participation of the police or by drawing up a Europrotocol. After the accident is recorded, drivers must notify their insurance companies of the occurrence of an insured event in accordance with the law. The victim then applies to the insurance company with which he or she has entered into a contract and submits a claim for payment.

It is important to remember that the victim can choose only one way to settle the insured event: through their insurance company or through the culprit's company. It is forbidden to submit claims to both companies at once.

In the previous article, we explained what the Europrotocol is and under what conditions it can be drawn up.

Under what conditions does the direct claims system not work?

The direct settlement system is only valid under certain conditions, and its use is not possible in some situations. For example, if the accident involved more than two vehicles or if the accident was not recorded by the police or was not formalized through the European Protocol.

Also, this mechanism cannot be used if the victim does not have a valid MTPL policy or if the insurer of one of the parties to the accident is not a party to a direct settlement agreement (for policies issued before 2025). If the accident caused damage to life or health, the victim will have to contact the insurance company of the culprit directly. It is also impossible to receive compensation through a direct settlement if the victim has already applied to the insurer of the culprit or if the victim's insurance company ceased operations at the time of the accident.

How to get an insurance indemnity under an MTPL policy?

A road traffic accident (RTA) is always an unexpected situation that can cause material and moral damage. If you have become an injured party in an accident, it is important to know the algorithm of actions to obtain insurance compensation. Strict adherence to the procedure will help to avoid unnecessary delays and ensure that you receive proper compensation.

1. Notify the insurance company

The first step is to inform the insurance company in a timely manner about the occurrence of the insured event. This should be done no later than three business days after the accident. Contact the insurance company representatives and follow the further instructions.

2. Keeping the damaged car

After the accident, your car must remain in the same condition as it was after the accident until the insurance company inspects it. This is necessary for a correct assessment of damages. The insurer is obliged to inspect the car within 10 business days after receiving a notice of the accident. If this does not happen, you have the right to contact an independent expert on your own, and the insurance company will have to reimburse the costs of the examination.

3. Preparing the necessary documents

To receive insurance compensation, you must provide a certain set of documents:

- A police report or an executed Europrotocol;

- Photos and videos from the accident scene (if available);

- Documents confirming the identity of the applicant;

- Documents of ownership of the damaged property;

- Bank details for receiving the payment;

- Court decisions (if applicable);

- Medical certificates and other documents in case of health damage;

- Other documents that may be required by the insurer.

A more detailed list of required documents can be found on the MTIBU website. The presence of witnesses to the accident can also significantly help in the investigation and speed up the payment process.

4. Submitting a claim for insurance payment

In order to receive compensation, you need to submit an application to the insurance company along with the relevant package of documents.

Deadlines for filing an application:

- If the damage is caused to property - one year from the date of the accident;

- If the damage was caused to life or health - three years from the date of the accident.

If the insured event falls under the direct settlement system, the victim applies to his or her insurance company. Otherwise, they apply to the insurance company of the person responsible for the accident.

After submitting a claim, the insurance company may require additional documents and should be able to inspect the damaged property. During this period, it is important to follow all recommendations and provide the necessary data.

5. Decision of the insurance company

The insurer is obliged to make a decision on whether to pay or refuse to pay based on the law and the documents provided. If the amount of damage exceeds the sum insured, the payment is limited to its maximum amount.

Timeframe for making a decision:

1. For contracts concluded before 2025: 15 days from the date of agreement on the loss with the victim, but no later than 90 days after the application is submitted;

2. For contracts that entered into force in 2025: the decision must be made within 60 days after the application is submitted, in exceptional cases - 90 days.

6. Receiving the payment

After the decision on payment is made, the insurance company must notify the claimant within three business days (for contracts before 2025) or within the allotted time for making a decision (from 2025).

Payment terms:

- For contracts before 2025: no later than 90 days after the application is submitted;

- For contracts effective from 2025: payment must be made within 3 days of notification of the decision.

If you are an injured party in an accident, following the above algorithm will significantly increase your chances of receiving compensation in a timely manner. It is important not to delay in notifying the insurance company, to properly execute all documents and to cooperate with the insurer. Following these simple rules will help you avoid problems and get paid as soon as possible.

Earlier, we told you what fines are provided for the absence of an MTPL policy and how to quickly buy a car insurance policy online.

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How is the amount of insurance indemnity determined?

Insurance indemnity is the compensation that the insurance company of the culprit of an accident pays to the victim to cover the damage caused. Its amount is determined in accordance with the sum insured specified in the motor third party liability policy.

For contracts concluded in 2024, the following payment limits are set: for property damage - UAH 160,000, for damage to life and health - UAH 320,000. Such policies may provide for a deductible of up to UAH 3,200, which the perpetrator must compensate on their own.

Starting from January 1, 2025, the limits will increase: the maximum amount of payments for property will be UAH 1,250,000 (up to UAH 250,000 per victim), and for damage to life and health - UAH 5 million (up to UAH 500,000 per victim). At the same time, the deductible will be canceled, allowing victims to receive full compensation at no additional cost.

Compensation for damaged or destroyed vehicles

Under insurance contracts concluded in 2024, the amount of insurance indemnity is determined on the basis of an expert assessment or in agreement with the victim. In this case, the cost of spare parts to be replaced is reduced taking into account the coefficient of physical wear and tear depending on the age of the car and its operating conditions. If the payment is made directly to the victim, the insurance company withholds the VAT amount. However, VAT can be reimbursed after repairs at a service station by submitting supporting financial documents.

Starting in 2025, payments are made directly to the service station, which the victim chooses from a list offered by the insurance company. In this case, the payment is made in full, excluding physical wear and tear and VAT. If the victim refuses this mechanism and wants to receive money on his or her own account, the compensation is calculated according to a standard formula and reduced by the amount of VAT.

The insurance company also covers the cost of a tow truck if it is necessary to transport the car after an accident. If the vehicle is declared totaled, the difference between its market value before the accident and the residual value after the accident, which is determined through an auction or expert evaluation, is subject to compensation.

Compensation for damage to life and health

Road accidents can have serious consequences for the health of victims, so the law provides for mandatory compensation for damage related to treatment and disability. The insurance company covers the costs of medical care, including transportation, diagnosis, treatment, prosthetics, rehabilitation, care, and necessary medications. Reimbursement is made on the basis of medical certificates and financial documents confirming the costs.

The victim may also receive compensation for loss of income during treatment. For employees, this is the average salary for the period of disability, for the self-employed - the difference in income before and after the accident, and for non-employed - a payment of at least the minimum wage. If the victim is disabled as a result of an accident, the insurance company pays compensation depending on the group: Group I - 36 minimum wages, Group II - 18, Group III - 12, and a child with a disability - 36.

In addition, the insurance company compensates for non-pecuniary damage caused by physical pain and suffering. For contracts concluded in 2024, the amount of compensation is 5% of the amount of payments, and for contracts starting in 2025 - 10%. Payments may be made on a monthly basis or as a lump sum as agreed by the parties.

Compensation for the death of the victim

If the victim dies as a result of a road accident, the insurance company makes compulsory payments to his or her family and dependents. In particular, the dependents of the deceased are entitled to compensation that cannot be less than 36 minimum wages and is paid in equal installments to each dependent. Family members (husband, wife, parents, children) receive compensation for non-pecuniary damage - 25 minimum wages for policies that come into effect in 2025 and 12 minimum wages for contracts concluded in 2024. Additionally, funeral expenses and a tombstone are reimbursed in the amount of up to 12 minimum wages.

Determining the amount of compensation

In 2024, the amount of insurance indemnity is determined based on the calculation of an expert who assesses the damage. Starting in 2025, the amount of compensation may be determined in one of three ways: directly by the insurance company, by an independent expert, or by agreement between the insurer and the victim. This allows for a more flexible approach to damage assessment and simplifies the compensation process, enabling victims to receive fair compensation in accordance with the circumstances of a particular road accident.

How has the maximum payment amount changed?

Starting from January 1, 2025, the maximum insurance payments under motor third party liability policies in Ukraine have increased significantly. Thus, the amount of compensation for damage to the life and health of victims will increase from UAH 320 thousand to UAH 500 thousand, and for property damage - from UAH 160 thousand to UAH 250 thousand. This is only the first stage of changes that will further increase the limits of payments.

Starting in January 2026, but only after the end of martial law, the maximum insurance amounts will increase again: for damage to life and health - up to UAH 1 million, and for property damage - up to UAH 2 million.

After Ukraine's accession to the EU, insurance payments will be aligned with European standards within 4 years. The amount of compensation for personal injury will increase to EUR 1.3 million per victim and EUR 6.45 million per insured event. Property compensation will also reach the level of EUR 1.3 million.

In addition, in the event of an insurance company's bankruptcy or revocation of its license, insurance payments will be made by the MTIBU without the need to wait for court decisions. The increase in insurance amounts may also lead to an increase in the cost of policies.

Will the cost of CTPCI change in 2025?

In 2025, insurers will have more freedom to set tariffs, which may affect the cost of CTPCI and Green Card policies. For international insurance, prices are expected to drop due to the abolition of fixed tariffs. However, for domestic insurance, the situation will be different: due to the introduction of direct settlement, the abolition of the deductible and the consideration of additional risks, prices for MTPL policies may increase significantly, sometimes even double.

The approach to tariffing will also change. Insurance companies will begin to evaluate clients based on a wider range of parameters, which will allow them to introduce individualized tariffs. This means that drivers with an accident-free record will be able to get more favorable insurance terms, while traffic offenders will pay more. This approach will contribute to a fairer insurance system by motivating drivers to comply with road safety rules. As a result, the insurance market will become more flexible and insurance conditions will become more personalized, which will have a positive impact on responsible car owners.

You can learn more about the prices for CTP insurance in 2025 by following the link.

Where to buy a CTP insurance policy at favorable prices?

Visit Ukraine offers a simple and fast way to get MTPL insurance online. We cooperate only with trusted insurance companies, which guarantees the transparency of the process and the reliability of the policy. It takes only a few minutes to complete the process, and after payment you will immediately receive an electronic policy to your email.

The process of purchasing a motor citizen on our website is as convenient and intuitive as possible. You will only need basic information about the vehicle and the owner. After clicking the “Order a policy” button, the system automatically finds your car by the license plate. If the data is not up to date, you can enter it manually by specifying the type of car, engine size, and region of registration of the owner.

Next, you need to select the policy start date, choose a favorable offer from the insurance company, and fill out the form. After confirming the data, it is enough to pay for the policy in a convenient way - and the insurance will be sent to your email immediately.

Advantages of buying a car insurance on the Visit Ukraine platform

There are a number of advantages to taking out a MTPL insurance policy on the Visit Ukraine portal that make this process fast, convenient and safe:

1. Efficiency and simplicity of registration: the policy can be issued online in a few minutes without the need to visit the office of the insurance company;

2. Ease of payment: various options are available, including bank cards and e-wallets, which makes the process as convenient as possible;

3. Electronic format: after taking out insurance, you immediately receive an electronic policy by e-mail, which allows you to always have it at hand;

4. Official insurance companies: policies are issued only by licensed insurers that are accredited in Ukraine.

5. Round-the-clock support: users can get advice or assistance 24/7 regarding the execution or use of the policy;

If you have any questions, Visit Ukraine's support service is available through the form on the website or in messengers (WhatsApp, Telegram). Take out car insurance now - fast, profitable and safe!

Buy a motor third party liability insurance on Visit Ukraine right now and take care of your protection on the road!

We remind you! MTPL insurance is mandatory in Ukraine. Therefore, it is important for drivers to choose a reliable insurer for long-term and safe cooperation. Read more about who is the leader of the Ukrainian car insurance market and where it is profitable to take out a CTP policy.

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