UKRAINE: Only 86% of the vehicles coveres by a MTPL policy

19 September 2012 — Oleg DORONCEANU, Olesea ADONEV
trafic_kiev"In 2011 200,000 road accidents were reported in Ukraine, in which 40,000 people were injured and about 5,000 died," stated Borys VIZIROV, General Director, Motor (Transport) Insurance Bureau of Ukraine (MTIBU), speaking at the Yalta International Finance Forum 2012.

According to MTIBU data, in Ukraine there are about 9.5 million registered cars, of which for only 8.2 million was issued an MTPL policy, meaning that the coverage degree for this type of insurance is 86%.

In 2012, Ukrainian insurers underwrote premiums worth UAH 1,203 million for motor insurance, while paid claims amounted to UAH 491 million, a significantly higher volume as compared with 2010, when the paid claims amounted to UAH 418 million.

Commenting this evolution, VIZIROV said that "some of the main problems in the motor insurance system are the dumping practices and the insurers' low levels of capitalization".

Ukraine is the largest country geographically in the CIS, with a population of 46 million people. The total number of insurance companies that operate on the local market is of 442.

Exchange rate: 1EUR=10.4 UAH

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