In January 2022, member insurance companies of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU) concluded 590.5 thousand contracts of compulsory civil liability insurance of land vehicle owners (OSAGO), which is 1.04% more than in January 2021.
According to the data published on the MTIBU website, out of the total volume of contracts, 273.3 thousand were concluded in electronic form, which is 5.05% more than in the first month of 2021.
Members of the Bureau increased the collection of insurance payments under OSAGO policies by 16.68% compared to the same period last year – up to UAH 522.7 million, including for electronic contracts – in the amount of UAH 271.2 million, which is 23.16% more, than a year earlier
The total amount of accrued insurance claims under internal insurance contracts for January 2022 increased by 9.72% to UAH 287.2 million. Including UAH 57.4 million was paid using the Europrotocol, which is 19.3% more than a year earlier.
The Bureau also recorded an increase in the number of settled claims for insurance compensation by 4.93% – up to 13.461 thousand, including 5.221 thousand (+14.2%) using the “Europrotocol”.
MTIBU is the only association of insurers that provides compulsory insurance of civil liability of owners of ground vehicles for damage caused to third parties. Bureau members are 49 insurance companies.
The Motor (Transport) Insurance Bureau of Ukraine (MTIBU) fulfills its international obligations and functions in war conditions.
“We are all facing the tragic and unique situation of the war initiated by the Russian Federation in Ukraine: we now have one National Bureau (MTIBU), which is a member of the board of the Green Card Bureau, is under fire, but still continues to work. It seems fantastic and almost unbelievable, but yes – it’s true: under all these circumstances, cooperation with MTIBU continues, despite the dramatic reality,” said Sandra Schwartz, President of the Board of the Green Card Bureau, in an exclusive interview with the analytical publication XPrimm.
According to her, according to MTIBU, the war in Ukraine caused a huge flow of refugees who left the country, many of them travel by car. Thus, while promoting a general consolidation of efforts to help them cope with the tragedy of war and seek asylum, European insurers are dealing with a very specific technical problem: crashes involving cars with Ukrainian license plates in the context of the fact that in an extreme situation, many of of them left for European countries without concluding an agreement on compulsory international insurance “Green Card”.
Answering a question about the number of Ukrainian cars that are now moving on European roads, Schwartz noted that, despite the fact that the Council of Bureaux is in constant contact with the authorities of countries that have a direct border with Ukraine, and the total number of refugees is known, there is a significant shortage information on the number of cars on Ukrainian license plates that left the country after the start of Russian military aggression.
“So we don’t have aggregated hard data yet, but we are sure that there are a huge number of Ukrainian-registered cars that not only cross the Ukrainian border to leave, but also drive further across Europe, where people hope to find shelter. And many of these cars do not have proper insurance protection,” she stated.
Schwartz stressed that such a situation is not legitimate, but has become generally accepted due to its urgency, since checking whether people have proper insurance is much less important than giving them access to a shelter as soon as possible. However, of course, there is a need to solve it.
Schwartz explained that there are several national initiatives to provide Ukrainians with free or cheap Green Card insurance or to cover temporary losses caused by uninsured Ukrainian cars.
“Also, a discussion has already begun whether this should be a common pan-European solution and how such a mechanism can work,” said the President of the Council of Bureaux.
She explained that the Council of Bureaux is in close contact with Insurance Europe (Federation of Insurers and Reinsurers, which unites 39 European insurance associations) on this issue in order to decide on the solution that will best resolve the current situation.
Due to the fact that the Ukrainian Bureau “Green Card” and insurers who are full members of the MTIBU are actively working, Ukrainian drivers can remotely renew an expired policy or receive a new one in digital format (as a pdf file). In the current situation, during verification, the document will be accepted in digital format, despite the fact that this is inconsistent with the UNECE recommendations, according to which the Green Card is a valid document only if it is provided in paper form.
Finally, the war in Ukraine also has a significant impact on cooperation with the Russian and Belarusian Green Card Bureaus.
“The first question is how and how it is still possible under the sanctions regime to make sure that the Russian Bureau is able to fulfill its obligations as a member of the Council of Bureaux. Of course, most of the questions at the moment are related to financial aspects, money transfers, etc.
We, as a system, must decide, taking into account reputational aspects, whether it is appropriate to have a Russian National Bureau among the members of the Bureau.According to the rules of the Green Card system, the only reason for suspending the membership of a particular national bureau is that it violates our rules.Thus , we must, first of all, analyze whether this is true or not,” Schwartz explained.
The Motor (Transport) Insurance Bureau of Ukraine (MTIBU) has excluded U.B.I.-COOP Insurance Group (Kyiv) from the associated members of the Bureau.
As reported on the MTIBU website, the reason for this decision was the insurer’s debt to pay the guarantee fee to the MTIBU funds.
In this regard, from September 1, the company has no right to conclude contracts for compulsory civil liability insurance of land vehicle owners (OSAGO).
At the same time, the Bureau notes that the termination of U.B.I.-COOP insurer’s membership in MTIBU does not relieve the insurer from fulfilling obligations under the OSAGO contracts concluded by it.
As reported, the rating agencies Standard-Rating and Expert-Rating at the end of April 2021 decided to suspend the financial stability rating of U.B.I.-COOP Insurance Group due to the temporary suspension of all licenses of the insurer by the National Bank of Ukraine on April 19, 2021.
U.B.I.-COOP, registered in 2000, specializes in providing services in the field of risk insurance.
The Motor (Transport) Insurance Bureau of Ukraine has excluded U.S.I. insurance company (Kyiv) and Kharkiv Municipal Insurance Company from the bureau’s associate members, the MTIBU told Interfax-Ukraine
The reason for this decision was the two-month indebtedness of the insurers to pay the guarantee fee to the MTIBU’s funds.
As reported, on April 20, 2021, the MTIBU reported that U.S.I. loses the right to conclude new contracts of compulsory insurance of civil liability of land vehicle owners (OSAGO), since a day earlier the NBU applied to it a measure in the form of suspension of licenses to carry out activities. For failure by the company to meet the solvency and capital adequacy standards, as well as the riskiness of operations, the formed insurance reserves were not placed in certain categories of eligible assets in full.
According to the data of the bureau, U.S.I. in 2020 entered into 87,050 contracts, premiums for which amounted to UAH 65.868 million, and paid to clients UAH 12.713 million.
Kharkiv Municipal Insurance Company in the first quarter of 2021 raised UAH 6.3 million of gross insurance premiums for OSAGO, paid UAH 1.33 million.
Insurance companies that are members of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU) in January-April 2021 increased the collection of insurance payments under the policies of compulsory insurance of land vehicle owners’ civil liability (OSAGO) by 15.67% compared to the same period in 2020, to UAH 2.103 billion, including under electronic contracts in the amount of UAH 1.074 billion, which is 63.29% more than in 2020.
During this period, the companies entered into 2.775 million OSAGO contracts, which is 10.45% more than in the same period in 2020. Out of the total volume of agreements, some 1.28 million were concluded in electronic format, which is 61.06% more than in the first four months of 2020.
According to the data published on the MTIBU website, the total amount of accrued insurance claims under internal insurance agreements in January-April 2021 grew by 32.57%, to UAH 1.177 billion. In particular, UAH 220.439 million was paid using the European road accident reports, which is 42.75% more than in 2020.
The bureau also recorded an increase in the number of settled claims for insurance compensation by 22.47%, to 58,182, including 20,947 with the use of European road accident reports (30% more).
The MTIBU is the only association of insurers that provides compulsory insurance of land vehicle owners’ civil liability for damage caused to third parties. The bureau members are 48 insurance companies.
Insurance companies that are members of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU) in January-March 2021 increased the collection of insurance payments under the policies of compulsory insurance of land vehicle owners’ civil liability (OSAGO) by 13% compared to the same period in 2020, to UAH 1.670 billion, including under electronic contracts in the amount of UAH 744.4 million, which is 65.2% more than in 2020.
During this period, the companies entered into 1.913 million OSAGO agreements, which is 7.7% more than in the same period in 2020. Out of the total volume of agreements, some 877,743 were concluded in electronic format, which is 62.6% more than in the three months of 2020.
According to the data published on the MTIBU website, the total amount of accrued insurance claims under internal insurance agreements in January-March 2021 increased by 26%, to UAH 862 million. In particular, UAH 162.3 million was paid using the European road accident record forms, which is 32% more than in 2020.
The bureau also recorded an increase in the number of settled claims for insurance compensation by 14%, to 42,763, including with the use of European road accident record forms 15,450 (more by 18%).
The MTIBU is the only association of insurers that provides compulsory insurance of land vehicle owners’ civil liability for damage caused to third parties. The bureau members are 48 insurance companies.
