UKRAINE: in 2022 payments from the Victims Protection Fund decreased by almost 10%

15 March 2023 — Marina MAGNAVAL
At the end of 2022, MTIBU (Motor Transport Insurance Bureau of Ukraine) carried out 5.3 thousand payments from the Bureau's Victims Protection Fund totaling UAH 250.9 million (EUR 6.39 million). Compared to 2021, the number of payments decreased by 25.8%, and the amount decreased by 9.9%, the Bureau said in its press release.

The average payment size increased to UAH 47.5 thousand, which is 21.4% more y-o-y.

Payments for damage caused by owners of uninsured vehicles (those responsible for traffic accidents who do not have a valid MTPL policy) also decreased - by 24.7% in number and by 11.7% amount-wise. It is these payments that occupy the largest part in the structure of the Fund's payments. The number of such payments reached 3.3 thousand units, total amount - UAH 161.8 million.

The share of payments for uninsured vehicles in the total number of payments in 2022 was almost 61.7%, in the total amount - 64.5%, while compared to the previous year, this share in terms of number increased by 0.8 pp, and in terms of amount - decreased by 1.3 pp.

In addition, in 2022, MTIBU paid UAH 15.2 million for MTPL obligations of insurance companies that ceased operations and declared bankrupt, which is almost the same as in 2021. For the obligations of companies that have ceased operations in the MTPL market, but have not yet been declared bankrupt, payments were made by returning the basic guarantee fee of such insurers to the MTIBU fund in the amount of UAH 26 million (+10%).

The decrease in the number of payments from the Bureau's guarantee funds reflects reduction in the MTPL segment because of the war, as many car owners were forced to evacuate abroad. In the first month after the invasion started, the Bureau received almost no claims for compensation, since the priority for people was to ensure safety of themselves and their loved ones.

The average payment size has increased, which may indicate an increase in the cost of restoring vehicles due to inflation and devaluation of the national currency.

* 1 EUR = 39.25 UAH (31.12.2022)

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