RBC-Ukraine explains what will change starting January 1. This information is reported by Contracts.UA.
New conditions for "auto liability insurance" in 2025
For owners of OSCPV policies, nothing changes. This means that insurance issued before January 1, 2025, will remain valid under its previous conditions for the duration of its term.
Conditions will change for those who purchase insurance this year. In particular, insurance payouts will increase. From 160,000 to 250,000 hryvnias for car repairs, and from 320,000 to 500,000 hryvnias for medical expenses of those injured in accidents.
Due to the cancellation of price regulation for "auto liability insurance," an increase in prices is expected. The deductible (the portion of costs not reimbursed by the insurer) will be eliminated in all contracts.
The exemption from obtaining OSCPV for certain categories of beneficiaries - combatants, persons with disabilities, etc., will be abolished. These groups will need to purchase a policy, but they will receive a 50% discount.
Mandatory direct damage settlement by insurance companies will be introduced. In case of an accident, the driver will be able to contact their insurance company instead of the at-fault party, significantly simplifying the process of receiving payments.
Full restoration - compensation will be calculated without considering depreciation, ensuring the vehicle is restored to its "pre-accident" condition. Insurance companies will arrange repairs at authorized service centers, relieving drivers of the need to resolve issues independently.
Additionally, in 2025, it is planned to implement monitoring of policy availability through speed camera systems. This means cameras will capture license plates, and the system will automatically check for the presence of "auto liability insurance," issuing fines if a policy is not found for the vehicle.
How much will mandatory OSCPV insurance cost?
It is currently unclear, as each insurance company will apply its own approach. However, it is possible that insurance costs could rise by 100% or more.
For example, the tariff grid from the VUSO company for Kyiv is provided on the hotline.finance service. If in 2024 the policy for a passenger car with an internal combustion engine up to 1600 cc cost 3,200 hryvnias, in 2025 it is expected to rise to 6,400 hryvnias.
Insurance for motorcycles or scooters with internal combustion engines up to 300 cc cost 1,088 hryvnias last year, and now it will cost 2,176 hryvnias. Other insurers are expected to update their tariffs soon.
Transitional phase: what happens in accidents with vehicles having different policies
Throughout the year, drivers with both old and new policies will be on the roads of Ukraine. It may be unclear how "auto liability insurance" will operate during accidents.
If the at-fault party has an old policy, and the victim has a new one
The victim contacts their insurance company, which operates under the new law. Compensation is calculated with depreciation considered, but the actual payout may be less than stipulated in the terms, as reimbursement is based on the at-fault party's contract.
Payouts within limits: up to 160,000 hryvnias for the vehicle, up to 320,000 hryvnias for medical treatment.
If the at-fault party has a new policy, and the victim has an old one
Here, the involvement of insurers in the direct damage settlement agreement plays a crucial role. In this case, the victim contacts their insurer for compensation. If not, they will reach out to the at-fault party's insurance.
Depreciation of the vehicle is not considered in calculating compensation. Payouts within limits: up to 250,000 hryvnias for the vehicle, up to 500,000 hryvnias for medical treatment.
If both have new policies
The victim contacts their insurance company, which compensates the damages. Then the victim's insurer settles with the at-fault party's insurance in a recourse manner. Compensation is provided without considering depreciation. A precise assessment of repair or restoration costs is anticipated.
Payouts within limits: up to 250,000 hryvnias for the vehicle, up to 500,000 hryvnias for medical treatment.
If both have old policies
Two options for settlement are possible depending on the involvement of insurance companies in the Direct Settlement Agreement. If the insurers are participants in the direct settlement agreement, the victim contacts their insurance company for compensation. If not, they contact the at-fault party's insurer.
Depreciation of the vehicle is taken into account in calculating compensation. Payouts within limits: up to 160,000 hryvnias for the vehicle, up to 320,000 hryvnias for medical treatment.
What has changed for the "Green Card"
The "Green Card" is a mandatory insurance policy that allows movement in the countries participating in the system. For Ukrainian drivers, this means outside of Ukraine. In the event of an accident, the "Green Card" guarantees compensation for damages to victims based on the laws of the country where the accident occurred.
Starting January 1, 2025, when crossing the border, there is no need to print paper copies of the "Green Card." It is permitted to carry an electronic document in PDF format and confirm the insurance presence from a smartphone screen.
This applies not only to checks by Ukrainian border guards but also to checks abroad. All countries participating in the Green Card system are required to accept both paper and electronic certificates. Moreover, those entering Ukraine in vehicles with foreign registration can also present insurance in electronic form.
The process of settling accidents under the "Green Card" remains unchanged.
Important new provision. The "Green Card" now becomes effective from 00:00 on the day specified in the agreement as the start date, but only after the record of this agreement is made in the Unified Centralized Database.
Thus, such insurance should be arranged at least one day before the planned departure.
If there is no valid certificate, the driver may be denied border crossing. All policies issued before January 1, 2025, will remain valid until their expiration date.
In the absence of an insurance certificate, some countries impose fines ranging from 150 to 1000 euros. An increase in the cost of the "Green Card" is also expected due to the cancellation of price regulation.
Preparation used: Law 3720-IX "On Mandatory Civil Liability Insurance of Owners of Ground Vehicles," data from the hotline.finance service.
Recall that RBC-Ukraine previously reported on the cases in which insurance companies may refuse payouts under auto liability insurance and what to do afterward.