The Law of Ukraine

On Mandatory Civil and Legal liability Insurance for Motor Vehicles Owners

Date of Entry into Force:
January 1, 2005

The Law regulates relations in the field of mandatory insurance of civil and legal liability of owners of motor vehicles and aims at ensuring compensation of damages inflicted upon life, health and property of the injured resulting from the operation of motor vehicles in the territory of Ukraine.

Mandatory insurance of civil and legal liability shall be performed to ensure compensation of damages inflicted upon life, health and property of the injured resulting from a road accident and to protect property interests of the insured.

Subjects of mandatory insurance of civil and legal liability shall be the insured, insurers, individuals, whose civil and legal liability is insured, the Motor (Transport) Insurance Bureau of Ukraine and the injured ones.

The right to provide mandatory insurance of civil and legal liability shall be given to the insurer that:
- has a license for providing this type of insurance;
- is a member of the Motor (Transport) Insurance Bureau of Ukraine.

To acquire the status of the Motor (Transport) Insurance Bureau of Ukraine associated member, the insurer shall:
a) receive a license for insuring civil and legal liability;
b) pay a guarantee contribution to the fund for protecting the injured ones in the amount determined by a provision on this fund, but it should not be lower than the equivalent of EUR 100,000.

To acquire the status of the Motor (Transport) Insurance Bureau of Ukraine full-fledged member, the insurer shall:
a) be associated member of the Motor (Transport) Insurance Bureau of Ukraine;
b) pay a guarantee contribution under conditions determined by Green Card, an international system of motor insurance.

The object of mandatory insurance of civil and legal liability shall be compensation by an entity, whose civil and legal liability is insured, of damages inflicted upon the injured resulting from the use of vehicle.

The insured accident shall be an event that resulted in damages to the third parties arising from a road accident.

Amounts of individual insurance payments (contributions, premiums) shall be established by the insurers independently by multiplying the basic payment and relevant corrective coefficients. Depending on the number of insured accidents that arose during the validity period of the previous agreements, an increasing coefficient shall be applied to the insurance tariff for the conclusion of an agreement with an individual for a new term.

The size of insurance payments in the Green Card system shall not be the subject of regulation of the present Law.

The mandatory limit for responsibility of the insurer for damages inflicted upon property of the injured shall be UAH 25,000 per one injured individual. In case the total amount of damages under one insured accident exceeds five limits of the insurer's responsibility, compensations to each injured individual shall be proportionally reduced. The size of franchise for compensating damages shall not exceed 2% of the limit of the insurer's responsibility within which they compensate damages inflicted upon property of the injured.

The mandatory limit of the insurer's responsibility for damages inflicted upon life and health of the injured shall be UAH 51,000 per one injured individual. Franchise shall not apply here.

It is possible to conclude the following types of contracts for mandatory insurance of civil and legal liability:
- an internal agreement for mandatory insurance of civil and legal liability, which is effective exclusively in the territory of Ukraine;
- an agreement for international mandatory insurance of civil and legal liability.

In case of driving a transport vehicle in the territory of Ukraine without effective policy for mandatory insurance of civil and legal liability, the driver of such vehicle shall bear responsibility established by the law.

The Law stipulates cases when damages shall not be compensated to the insured individual. Such cases include:
- damages inflicted upon an insured vehicle that caused a road accident;
- damages inflicted by using an insured vehicle during a training trip or for participation in official competitions;
- other damages.

Insurance compensation shall be paid within one month from the day when the insurer received all the necessary documents from the insured individual or within the periods and in the amounts determined by a court ruling.

For the purpose of organizing exchange of information on mandatory insurance of civil and legal liability and overseeing how it is implemented, a unified centralized database shall be set up. It shall contain information on current and expired agreements for mandatory insurance of civil and legal liability, insured accidents that took place, vehicles and their owners. The Motor (Transport) Insurance Bureau of Ukraine shall be the operator of such a unified centralized database.

Insurers shall provide bodies of the State Road Inspection under the Ministry of Internal Affairs of Ukraine with information on concluded, invalid and expired agreements for mandatory insurance of civil and legal liability upon their request.
Warning! The information is outdated due to the fact that this section is temporarily not updated!


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