UKRAINE: for 9 months MTIBU paid over UAH 12 million from the Victim protection fund to the victims of road traffic accidents

22 October 2020 — Marina MAGNAVAL
From January to September 2020, the Motor (Transport) Insurance Bureau of Ukraine (MTIBU) paid UAH 12.2 million (~EUR 0.36 million*) from the Victim protection fund to the victims of road traffic accidents-clients of bankrupt insurers, as MTIBU said in its press release.

Deputy General Director of MTIBU Lyudmila BELOSHITSKAYA noted that "the dynamics of payments for bankrupt insurers are of a "peak" nature: the number of payments increases sharply when, after completion of the bankruptcy procedure or the liquidation of the insurer, we begin to pay the victims under its obligations".

The Deputy Director General of MTIBU stressed the imperfection of the current procedure for payments for bankruptcies when payments to victims cannot be made until the bankruptcy procedure of the insurance company is completed. She also noted that in order to solve the problem, amendments to the current law on MTPL or adoption of a new one, providing for the possibility of starting payments to victims immediately after the insurer is deprived of its membership in MTIBU, are needed.

* for the following exchange rate:
1 EUR = 33.1643 UAH (as of 01.10.2020)

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