UKRAINE: Four years anniversary from the start of the system of MTPL direct settlement

8 December 2020 — Marina MAGNAVAL
December 1st, 2020 marked four years since the system of direct settlement of losses in MTPL was launched in Ukraine. Now, 15 MTIBU (Motor Transport Insurance Bureau of Ukraine) member companies are members of this system, according to the Bureau's website.

According to the Bureau, the share of companies participating in the direct settlement system (when victims of accidents have the right to apply for compensation to their insurance companies) on the MTPL market in 2020 is: in terms of the number of contracts - 27.4%, in terms of claims received for insurance compensation - 33.9%. The average settlement period in the direct settlement system is 35 days, while outside this system the average settlement period on the Ukrainian MTPL market is 70 days.

According to the General Director of MTIBU Vladimir SHEVCHENKO, direct settlement has advantages for both vehicle owners and insurers. Vehicle owners can choose a company more consciously and get paid faster, while insurers have an opportunity to improve service and increase customer loyalty. As Vladimir SHEVCHENKO noted, MTIBU plans to "develop such conditions of the direct settlement system, which will ensure participation of the majority of MTIBU member companies in it," he said.

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