Starting from January 1, 2025, a new law titled “On Mandatory Insurance of Civil Liability of Owners of Land Vehicles” will come into effect.
According to the National Bank of Ukraine, the new law grants insurers some flexibility in determining the policy cost, which will be based on the driver's personal history. Consequently, price increases will primarily affect clients with a negative history of traffic accidents or those categorized as higher-risk drivers (for instance, drivers with limited experience or those in large cities). Preliminary estimates suggest that, in a highly competitive market, the extent of such increases could reach nearly 25-30 percent.
From January 1, 2025, the “ceiling” for compensation for harm to life and health will be raised to 500,000 hryvnias, and for property to 250,000 hryvnias.
The law includes several beneficial innovations, as reported by the NBU: the abolition of the depreciation coefficient and the introduction of a principle that insurance compensation must restore the vehicle to its pre-accident condition; direct settlement of vehicle damage due to accidents; allowing the victim to claim insurance compensation from their own insurer; limiting the maximum decision period for insurance payouts to 90 days and implementing penalties for insurers who violate this timeframe; removing the cap on the maximum amount of insurance compensation under the European protocol; and enabling payouts from the Motor (Transport) Insurance Bureau (MTSBU) instead of the insurer whose license has been revoked, even before the completion of the relevant bankruptcy proceedings and final liquidation.
As reported by finance.ua, starting January 1, the police will have the authority to check for the presence of an OSCPV policy not only in the event of an accident but also during any document checks. This procedure is also planned to be automated through video surveillance cameras on the roads, as the “auto civil liability” policy will only be valid after its registration in the Centralized Database starting January 1, 2025. However, the provision for this “online check” will not be operational yet, as it requires corresponding legislative changes that are currently absent.
The franchise, which is the amount not paid by the insurance company and covered by the at-fault party in the event of an accident, will also be abolished. Previously, this option was purely contractual between the vehicle owner and the insurer, though it was limited in amount; however, starting January 1, its use will be explicitly prohibited by law.