Zelensky signs law on car insurance reform

President of Ukraine Volodymyr Zelenskyy has signed the Law "On Compulsory Insurance of Civil Liability of Owners of Land Vehicles" (No. 8300). The document provides for a gradual increase in the amount of insurance amounts to the amounts established in the countries of the European Union. This is reported by UNN with reference to the draft law on the parliament's website.

The document provides for a gradual increase in the amount of insurance amounts (maximum insurance payments) to the amounts established in the European Union.

Currently, the insurer's liability limit for damage to life and health is UAH 320,000 per victim, regardless of the number of victims, and for damage to property of victims - UAH 160,000.  per injured person, but not more than UAH 800,000 per insured event.

Within two years after the law comes into force, it is proposed to gradually increase these amounts for damage to the life and health of victims to UAH 1 million per victim and UAH 20 million per insured event, regardless of the number of victims, and for damage to property of victims to UAH 2 million per insured event, regardless of the number of victims.

Within four years after the year of Ukraine's accession to the European Union, it is proposed to gradually increase these amounts for damage to the life and health of injured persons to at least UAH 52 million per injured individual and UAH 258 million per insured event, regardless of the number of injured persons, and for damage to property of injured persons to at least UAH 52 million per insured event, regardless of the number of injured persons.

The document also provides:  

• reduction of the period for consideration of an insurance claim from 90 to 60 days from the date of submission of the insurance claim;  
• introduction of direct settlement in all cases of road traffic accidents in which damage is caused only to the vehicle, which will allow the injured person to apply for insurance payment to the insurer with whom the MTPL agreement was concluded;
  
• ensuring transparency of the activities and introducing mandatory and regular reporting of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU).
  

The Law shall enter into force on the day following the day of its publication and shall come into effect on January 1, 2024, except for: Article 11, which shall enter into force and come into effect on January 1, 2027; part two of Article 14, which shall enter into force and come into effect on January 1 of the fourth year after Ukraine's accession to the European Union; paragraphs 12 and 13 of this section, which shall enter into force and come into effect on the day following the day of publication of this Law.

Recall

On May 21, the Verkhovna Rada passed in the second reading the draft law on car insurance reform.