Changes in the OSAGO law

Anna Tkach

AutoPortal editorial team

1,952 views 2 min read

"Autocivilian" is a mandatory type of insurance. Changes in this area are regulated at the state level. New MTPL rules have been in effect in Ukraine for more than a year. In the near future, amendments to the law on auto insurance are expected to be adopted.

What has already changed?

It is always unpleasant to be the culprit of a traffic accident. Rare is the driver who has not found themselves in such circumstances.

Compensation for damage caused to property and health of those injured in an accident is provided by MTPL insurance, a document without which you cannot hit the road. Car owners are actively interested in innovations and observe positive changes:

an increase in insurance payments under "auto civil liability" has been approved. Compensation amounts have increased by 30,000 and 60,000 hryvnias for harm caused to property and health of the injured party, respectively. Insurers believe that the increase in limits most fully compensates for damage in severe accidents, but do not expect significant losses, since large-scale road incidents are rare;
additions have been made to the current traffic rules. The driver has the right to confirm the presence of a policy on any electronic device: smartphone, tablet. Representatives of the National Police are not entitled to demand a printed version of the MTPL insurance;
the correction coefficients in the bonus-malus system have changed. They will be both reducing and increasing depending on the insurance history of the car owner;
the coefficients determining the cost of MTPL insurance have been revised. Instead of being tied to the place of registration of the vehicle, the registration and place of residence of the owner are taken into account. Electric vehicles have received their own category. For them, the correction coefficient is 10% lower than for cars with an engine displacement of 1600 cm³. New tariff zones have appeared;
the format of the new paper MTPL policy form has been approved. Insurance companies stopped using the previous version on March 1, 2020.

Insurance companies offer a comprehensive package to increase the reliability of MTPL insurance. It adds civil liability insurance with additional coverage to the classic policy, which allows full compensation for damage to the injured party.

In the future — improving the quality of insurance protection

A draft law has been registered in the Verkhovna Rada that provides for financial protection for those injured in traffic accidents at the level of European states. If the document is approved, payments will gradually increase until 2025. It is planned to achieve the following compensation amounts:

up to 20 million hryvnias — for harm caused to life and health for one injured person;
up to 16 million hryvnias — for damage to a car per one incident.

The payment period for compensation to victims will be reduced to 60 days, in some cases — to 10 days.

After the adoption of the bill, the regulator of the insurance market will change. The powers of the National Commission for Financial Services will be transferred to the National Bank of Ukraine. The implementation of the change will push out insurance companies with dubious reputation and ownership structure, with large accounts receivable.

Industry experts believe that these measures will bring Ukraine to a new qualitative level of insurance protection in traffic accidents.