On January 1 next year, the Law of Ukraine “On Compulsory Insurance of Civil Liability of Owners of Land Vehicles” will come into force, which should put an end to the semi-legal sale of policies at below-market prices.
This was reminded by Serhiy Savchuk, Director of the Department of Methodology for Regulating the Activities of Non-Banking Financial Institutions of the National Bank.
“The new law on motor third party liability will come into force in a few months, starting in January 2025,” Savchuk said.
He reminded that the law provides for an almost twofold increase in insurance amounts. In particular, payments for damage to property will increase from the current UAH 160 thousand to UAH 250 thousand, and for damage to life and health – from UAH 320 thousand to UAH 500 thousand.
Starting in 2026, the amount of payments will increase even more – up to UAH 1 million per person and up to UAH 20 million for all victims of one accident. Payments for property damage will be up to UAH 2 million.
Under the new rules, the full cost of repairing the car to the condition it was in before the accident will be paid. At the same time, new original parts will be used for cars under warranty, and licensed parts will be used for non-warranty cars.
Also, starting in 2026, paper policies will be abolished; all insurance contracts will be concluded in electronic form with mandatory entry into the central database of the Motor (Transport) Insurance Bureau of Ukraine.
As reported, the law on compulsory civil liability insurance for owners of land vehicles was passed by the Verkhovna Rada on May 21, 2024, and signed by the President on June 17.