Road accidents insurance compensation to double in Ukraine

19:30, 14 July 2015
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Motor Transport Insurance Bureau of Ukraine (MTIBU) suggests an annual increase, at least twofold, of insurance compensations under contracts on mandatory insurance of civil liability of motor vehicle owners, as reported on MTIBU website.

Photo from UNIAN

"MTIBU proposes an annual increase of insurance compensations, by two times at least, which will in the next 10 years bring Ukrainian standards regarding mandatory vehicle insurance in line with those in the EU," according to a statement.

It is noted that the current insurance compensation limiting the insurer's liability was approved by the State Commission for Regulation of Financial Services Markets in Ukraine in 2010, and in view of rapid inflation and a substantial increase in estimated losses resulting from accidents, the amount should be increased.

"Relevant proposals have been repeatedly submitted to the state commission. MTIBU hopes that they will soon be revised and approved," the statement reads.

MTIBU proposals include a twofold increase of insurance compensations, with setting insurance compensation for damage caused to life and health in amount of UAH 200,000, and the insurance compensation for damage to property at UAH 100,000.

As UNIAN reported earlier, in April, the MTIBU presidium recommended insurers to increase the adjustment coefficients of mandatory civil liability insurance to a necessary level in view of rising costs of vehicle repairs due to devaluation of the hryvnia, the measure which is said to increase the cost of insurance policy by 25-30%.

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