Motor third-party liability insurance remains one of the most popular types of insurance in Ukraine. It is a compulsory type of insurance, the terms and conditions of which are regulated by law. Even so, it is subject to changes.
First of all, they relate to insurance coverage. And here, Ukraine is gradually approaching the European approach. Its main principle is to make car insurance a real financial protection for car owners. This requires that the insurance payout be sufficient to restore the property and health of the victims. Different European countries have their own vision of this amount, which can range from several thousand to millions of euros. Insurance limits in Ukraine are not yet that high, but protection is improving. Since July 1, 2022, the sum insured for property damage has increased from UAH 130 thousand to UAH 160 thousand, and for damage to life and health of the victims, the amount has increased from UAH 260 thousand to UAH 320 thousand.
Certain changes have also occurred in the claims settlement process. For example, the limit (maximum amount) of compensation for damage to the property of victims in case of an accident reported under the European protocol has increased to UAH 80 thousand. Despite this, the share of insurance events registered using the European protocol has decreased. At INGO Insurance Company, it dropped to 19%, although in the first months of the war the company practically lifted restrictions on the amount for which cases could be registered through the European protocol. Last year, the share of such cases reached 25%.
The total number of reported insurance cases also decreased. INGO speaks of a 30-40% reduction from the pre-war level. However, the average payout period has increased by 15% and is now 63 days from the date of registration of the case. The average amount of payments made by the insurance company in 2022 also increased. Due to the rise in the cost of repair and restoration work and spare parts, the total average amount of payment for property damage increased. While last year it amounted to UAH 25,000, this year it is UAH 27,000. Compensation for life and health increased almost twofold: from UAH 46 thousand to UAH 82 thousand.
However, these figures should improve over time. After all, Ukraine is quickly learning to live in the face of military aggression and win. And insurance companies continued to fulfill their obligations even in the first days of the war.