Ukraine plans to change the requirements for the ‘motor third party liability insurance’ database
The National Bank of Ukraine invites to discuss the draft Regulation on the establishment of a Unified Centralised Database for Compulsory Motor Third Party Liability Insurance. This was reported by the NBU press service.
The project was created in accordance with the Law of Ukraine ‘On Compulsory Insurance of Civil Liability of Owners of Land Vehicles’, which will come into force on 1 January 2025.
The purpose of the database is to switch to the electronic form of insurance contracts, store and verify information on the validity of CTP contracts.
What the new draft law provides for
The NBU proposes
- an updated list of information that insurers – members of the MTIBU (Motor Transport Insurance Bureau of Ukraine) – must enter about domestic and international motor third party liability insurance contracts and insurance payments;
- detailed requirements for entering information to ensure the relevance of the database;
- rules for processing, storing and protecting data in the database.
This provision will replace the current NBU Resolution No. 108 of 2022, which regulated civil liability insurance.
Key provisions of the new law on motor third party liability insurance
The Law on Compulsory Motor TPL Insurance, adopted by the Verkhovna Rada on 21 May 2024, introduces the following changes
- gradual increase of insurance amounts to European standards, as well as acceleration of payments to victims of bankrupt insurers within 60 days
- expanding the possibilities for the police, the border guard service and Ukrtransbezpeka to check the availability of an MTPL policy.
- introduction of free pricing for insurance contracts, which will allow insurers to determine the price independently depending on the client, cancellation of the deductible.
- 50% discount on one MTPL policy for all categories of beneficiaries.
- introduction of direct settlement of losses between insurance companies to improve the efficiency of payments.
- payments for car repairs without taking into account the wear and tear of the car and the possibility of directing funds directly to the service station, with the obligation of insurers to provide customers with several options for service stations within a radius of 150 km.
- The innovations will come into force on 1 January 2025 in accordance with the transitional provisions of the law.
