UKRAINE: The new MTPL law to improve protection for vehicle owners and become a step towards European insurance standards

1 February 2023 — Marina MAGNAVAL
On January 12, 2023, the Verkhovna Rada supported in the first reading the draft law "On Compulsory Insurance of Civil Liability of Motor Vehicle Owners", according to a press release from MTIBU (Motor Transport Insurance Bureau of Ukraine).

The purpose of the new law is to improve the procedure for calculating and making MTPL insurance payments, increase protection of the interests of victims by increasing insurance payments, and switching to free pricing, etc.

"The MTPL market participants and the Motor Bureau formulated the main provisions of the new legislation back in 2015, contributing to the development of the market and better protection of all road users in Ukraine. The NBU (National Bank of Ukraine), as a regulator of the insurance market, and the specialized Committee on Finance, Tax and Customs Policy of the Verkhovna Rada of Ukraine, appreciated social significance of modernizing the legal foundations for MTPL and did everything possible so that, despite the war, the draft law was developed and adopted as a basis in a short time", the MTIBU directorate commented.

By the second reading of the draft law, it is planned, among other things, to discuss the timing of a gradual increase in insurance amounts so that their growth has a minimal impact on the cost of insurance. "Adoption of the new law "On MTPL" will be a big step towards European standards and practices for protecting interests of road users", market representatives believe.

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