On June 17, 2024, the President of Ukraine signed the law “On mandatory insurance of civil liability of owners of land vehicles”, which will ensure further development of this market and bring it closer to EU standards, Forinsurer reports.

The main goal of the new Law is to introduce a qualitatively new model of market regulation in accordance with European standards, considering the interests of policyholders and victims of road accidents, increasing confidence in this type of insurance and ensuring further development of MTPL.

The law is aimed at solving problems such as imperfect procedures for calculating and making insurance payments for damages, low limits of insurers’ liability, state regulation of pricing, as well as low efficiency of the MTIBU management system and limited role of the state in controlling the Bureau’s activities.

It is planned to gradually increase insurance amounts (the maximum amount of insurance payment) to the levels established in the EU countries. Today, the insurer's liability limit for damage caused to life and health is UAH 320,000 (~EUR 7,376) per victim, and for damage caused to the property of victims, it is UAH 160,000 (~EUR 3,688) per victim, but not more than UAH 800,000 (~EUR 18,441) for one insurance event.

The law, after its declaration, will come into force on January 1, 2025. It is noted that the National Bank presented the concept of reforming the MTPL market in September 2022.

*EUR 1 = UAH 43.38 (as of June 20)