Maximal insurance limits in 2019 will be increased by 30% and will amount to UAH 130 thousand for property damage and UAH 260 thousand for damage to life and health. New limits will be valid only for MTPL agreements, concluded after the relevant order of the National Financial Services Committee enters into force.
The MTIBU initiative to increase the limits for MTPL was due to that the limits have not been revised for almost three years, and the cost of spare parts and repair services is constantly going up. According to MTIBU, the total number of MTPL insurance cases, exceeding the limit amount for damage to property of UAH 100 thousand, went up last year by about 1.5 times.
As of today the limit of liability for damage to property is UAH 100 thousand per each victim, but not more than UAH 500 thousand for all victims, and the limit for damage to life and health of a victim is UAH 200 thousand per each victim.
The limit of insurance amount for damage to property is planned to be increased from January 1, 2020 to UAH 500 thousand per each victim and UAH 2 million per each event. Until January 1, 2025 insurance limits should be gradually increased to UAH 8 million per each victim and UAH 16 million per each event regardless of the number of victims. Increase of insurance limits for damage to life and health is planned to be increased from January 1, 2020 to UAH 1 million per each victim and UAH 20 million per each event regardless of the number of victims. From January 1, 2025 the limits will be increased to UAH 20 million per each victim and UAH 100 million per each event, regardless of the number of victims.
Also the new draft law provides for reduction of the claim settlement period from 90 to 60 days and imposition of fines on insurers for delayed payment of indemnities (20% of unpaid or underpaid amounts), as Forinsurer wrote.
*EUR 1 = UAH 31.62 (as of 04.02.2019)
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