In INGO, 90% of insured events are within the current limits under the Motor Citizen policy, but there is an increase in the number of maximum payments, says Olga Pogorela, Deputy Head of Underwriting at INGO.
According to her, inflation and rising car prices today do not always allow victims to restore their property with the help of insurance payments, so the sums insured under CMTPL need to be increased.
The increase in the limits proposed by the NBU is quite reasonable, as these are actually the current limits, but adjusted for inflation.
"However, this is not the only factor that influences the increase in the limits," says Olga Pohorila, "This process should continue, as Ukraine has committed itself to getting closer to European standards. All these changes are also envisaged by the draft new law on compulsory insurance of civil liability of owners of land vehicles."
The increase in insurance amounts will trigger an increase in the deductible. After all, its maximum amount is set by law as a percentage of the property damage limit. For example, now the maximum deductible is UAH 2,600 (2% of the limit), while with the new limits, the amount will be UAH 3,200.
The NBU has proposed for discussion draft resolutions to increase the insurance amounts for CTPCI. It is proposed to increase the amount of insurance from the current UAH 130 thousand to UAH 160 thousand for damage to property of victims and UAH 260 thousand to UAH 320 thousand for damage to life and health.
The last revision of the insurance amounts was made in August 2018.