UKRAINE: MTIBU: Payments from the Victims Protection Fund increase by more than 58% in 1H compared to 2021

1 August 2023 — Marina MAGNAVAL

According to the 1H results, the MTIBU (Motor (Transport) Insurance Bureau of Ukraine) made almost 4,000 payments from the Bureau's Victim Protection Fund for a total of UAH 225 million (~EUR 5.61 million), as the Bureau stated in its press release.

The Bureau notes that since in the first half of 2022 there was a decrease in the number of payments against the backdrop of a military invasion, 2021 will be a more correct comparison base. Thus, the number of payments compared to 2021 increased by 6.5%, the amount - by 58.8%.

Compared to the 1H2021, in the reporting period the average regulatory payment increased by 49%. This growth is due to several factors - an increase in the sums insured from July 1, 2022 (the maximum amount of payment limited by law), as well as devaluation and inflation processes, which led to an increase in the cost of vehicle repairs.

Payments for damage caused by owners of uninsured vehicles (those who caused an accident not having a valid MTPL policy) remain the largest item of regulatory payments from the Victims Protection Fund. Their share is 63.7% by number and 68.4% by amount. The number of payments in such cases increased by 7.7% (vs 1H2021), and the amount reached UAH 153.8 million (+60.6%).

*EUR 1 = UAH 40.08 (as of 01.07.2023)