With faith in 2023 as a victorious year for Ukraine, we look confidently to the future and are already planning our recovery.
It is important to preserve our achievements and give them a new quality, adding even more confidence in the future.
This is how the updated version of the Law on MTPL insurance can be described. Recently, a group of People’s Deputies registered the Draft Law on Compulsory Insurance of Civil Liability of Owners of Land Vehicles No. 8300, which was already supported by the Verkhovna Rada Committee on Finance, Taxation and Customs Policy on 10.01.2023.
Some may say that “this has already happened, we know what will come of it”. Perhaps, but this time is special, for the first time we have the result of the hard work of the team: International experts, MPs, NBU, insurers. The main goal of the Draft Law is to create a better, more convenient insurance product, to ensure a fair and reliable basis for the functioning of compensation systems.
Let’s take a closer look at what car owners can expect.
The document introduces flexible conditions for concluding insurance contracts, variability of policy terms and an effective mechanism for monitoring their availability for all road users, adding confidence that the history of the absence of motor third party liability insurance for the culprit of the accident will remain in the past.
Along with free pricing, benefits for certain categories of citizens are preserved, designed to ensure the availability of an insurance product for everyone.
The introduction of mandatory direct settlement of losses will allow you to take advantage of all the benefits of service with the insurer with whom the policy is concluded. Increasing the amount of insurance amounts, refusal to apply “depreciation” in the calculation of insurance indemnity, prohibition of deductibles will allow to fully restore the car after an accident, providing car owners with proper service and speed.
A properly restored and technically serviceable car is a prerequisite for road safety, so the financing of the full elimination of the consequences of an accident at professional service stations is entrusted to insurers.
A simplified algorithm of interaction with the insurer provides an opportunity to receive a vehicle restored after an accident and ready for further use in the shortest possible time.
Updating the system of guaranteeing insurance payments will allow to avoid five-year expectations of receiving compensation.
The adoption of the Draft Law will not only improve the quality of motor third party liability insurance services, but will also be another step in the European integration path of Ukraine, as the implementation of European norms of motor third party liability insurance is a prerequisite for Ukraine’s accession to the EU.
If the MPs support the long-awaited document, the main part of these benefits will be available starting from 2024.
