As reported by the online insurance service hotline.finance, this reform introduces several key changes aimed at increasing compensation limits and simplifying the claims process for motorists.
Under the new system, compensation for mandatory motor third-party liability insurance will significantly increase:
Property damage compensation will rise from 160,000 to 320,000 UAH.
Payments for injuries or death resulting from accidents will increase from 320,000 to 500,000 UAH.
Previously, inadequate compensation amounts and the need for drivers to cover additional expenses were common. The new system aims to minimize these risks by providing more comprehensive coverage in the event of an accident.
Key changes in vehicle owners' liability insurance:
The deductible amount is abolished for all mandatory motor liability insurance policies. This means that car owners will no longer have to contribute to repair costs; the insurance company will cover all losses.
Additionally, accident victims will now be able to contact their own insurance company directly rather than going through the insurer of the guilty party. This streamlines the process and speeds up compensation payments.
Insurance payouts will no longer consider the depreciation of vehicle parts, meaning compensation will be based on the full cost of repairs. This is particularly beneficial for owners of older cars, who previously risked receiving significantly lower compensation than the actual repair costs.
Instead of receiving cash payments, insured drivers can have their vehicles repaired at authorized service stations, with the insurance company handling the organization of the repairs.
What lies ahead for motorists:
In 2025, Ukraine plans to implement an automated system for checking motor third-party liability insurance coverage through speed cameras. Any violations, such as driving without insurance, will be automatically recorded, and fines will be imposed accordingly.
While the modernization of the insurance market promises better service and more comprehensive coverage, it is expected to lead to an increase in the cost of mandatory motor liability insurance. Experts estimate that prices may rise by 100% in some areas.
The reform is regarded as a necessary step for insurers to provide quality services and ensure proper compensation. According to hotline.finance, the increase in rates is a logical consequence of the changes, and motorists should be prepared for higher insurance premiums in 2025.