The National Bank of Ukraine has changed the terms of compulsory insurance of civil liability of land vehicle owners. The changes will come into force on July 1, 2022 and will affect 42 insurers that are members of the MTIBU and all Ukrainians who have signed auto-citizen agreements. Among other things, it is expected to increase the amount of sums insured and the amount of insurance payment under the “Europrotocol”.
The changes, which, as the regulator explained, “bring the Ukrainian insurance market closer to the best European standards and take measures to support consumers of insurance services.” They are provided for by two resolutions of the NBU Board:
What exactly will change in compulsory civil liability insurance
The National Bank increased the sums insured under the contracts of compulsory insurance of civil liability of owners of ground vehicles. This will allow consumers to get better financial protection. The NBU says that the cost of the policy “will not increase significantly.”
Increase in the amount of sums insured under the contracts of “car insurance”
- up to UAH 160,000 per victim for damage caused to the property of victims (out of UAH 130,000);
- up to UAH 320,000 per victim for damage caused to the life and health of victims (out of UAH 260,000).
Increase in the amount of insurance payment under the “Europrotocol”
- up to UAH 80,000 per victim (from UAH 50,000).
This will allow more road accident victims to receive insurance payments without the need to call representatives of the National Police, often involved in the defense of the country during martial law, to the scene of the accident.
Expansion of the range of values of the adjustment coefficient to the base insurance payment.
- This ratio helps to assess the level of unprofitability of the insurer’s activities. Expanding its range will allow insurers to minimize risks and form an adequate tariff policy for consumers of insurance services.
Information about concluded electronic contracts “Green Card” will be included in a single centralized database.
- This step will expand the amount of data that ISIBU operates, which in turn will allow users to obtain comprehensive information on all types of concluded insurance contracts and protect them from possible fraudulent actions related to the manipulation of incomplete data.