Insurance companies that are members of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU) in January-February 2021 signed 1.159 million contracts of compulsory insurance of land vehicle owners’ civil liability (OSAGO), which is 2% more than for the same period a year earlier.
According to the data published on the MTIBU’s website, out of the total volume of contracts, 528,400 were concluded in an electronic format, which is 56.8% more than in the two months of 2020.
The members of the bureau increased the collection of insurance premiums under OSAGO policies by 7.4% compared to the same period last year, to UAH 899.7 million, including under electronic contracts – in the amount of UAH 450.9 million, which is 60.4% more than a year earlier.
The total amount of accrued insurance claims under internal insurance contracts in January-February 2021 increased by 18.8%, to UAH 538.4 million, including UAH 99.9 million paid using European road accident record forms, which is 18% more than a year earlier.
The bureau also recorded an increase in the number of settled claims for insurance compensation by 4.8%, to 26,400, including with the use of European road accident record forms – 9,529 (more by 6.2%).
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.
Some 76.7% of OSAGO claims in Ukraine were settled within 90 days, according to the performance indicators of insurers for the fourth quarter of 2020.
According to the Motor (Transport) Insurance Bureau of Ukraine (MTIBU), the share of claims settled within 60 days was about 58.5% (Q4, 2019 – 62.7%), up to 90 days – 76.7% (75.1%), up to 120 days – 85.1% (81.7%).
The MTIBU notes that the best performance in the settlement of insurance events was shown by Motor-Garant insurer, which settled 87.7% of all OSAGO claims within 60 days, VUSO – 82%, Ukrainian Insurance Standard – 79.1%, Kniazha VIG – 76.4%, Alfa-Insurance – 75.8%, ASKO-Donbas Pivnichny – 75.1%, Inter-Policy – 75.1%, ARX – 74.6%, Express Insurance – 73.1%, Guardian – 72.8%, Ukrainian Insurance Group – 72.5%, Arsenal Insurance – 72.2%, TAS – 72.3%, INGO – 70.7%, Krayina – 70.7%.
In addition, it is reported that in the fourth quarter of 2020, the MTIBU received 333 complaints from victims and policyholders about the actions of insurance companies, which is 11 more than in the fourth quarter of 2019. The largest number of complaints was received against Omega – 32, which is 11.72% of the total number of resolved OSAGO events, ASKA – 51 complaints (6.81%), Unives – nine (6%), U.S.I. – 53 (1.83%).
The MTIBU is the only association of insurers in Ukraine that provides compulsory insurance of land vehicle owners’ civil liability for damage caused to third parties. The bureau members are 48 insurance companies.
The Motor (Transport) Insurance Bureau of Ukraine (MTIBU) has introduced new tariffs for Green Card policies for those traveling abroad by road from January 4, 2021.
According to a report on the bureau’s website, the MTIBU has recalculated the cost of Green Card insurance certificates upwards by an average of 3.8%.
The last change in tariffs was on October 19, 2020 upwards by 3.3%, on August 3, 2020 upwards by 3.1%, on July 24 by 3.8%, on June 16 by 3.5%.
Green Card policies have been implemented since 2009 of two types: all of Europe; Belarus, Moldova and Russia. Also, from January 1, 2016, the Ukrainian Green Card policies began to operate on the territory of Azerbaijan.
According to the MTIBU, the cost of Green Card in Ukraine for 15 days for travel in Europe for passenger cars increases to UAH 846 (previously UAH 815), for buses to UAH 3,180 (UAH 3,062), for trucks to UAH 1,996 (UAH 1,922).
The cost of Green Card for one month for cars is now UAH 1,347 (previously UAH 1,297), for buses UAH 4,417 (UAH 4,253), for trucks – UAH 2,650 (UAH 1,922).
The cost of semi-annual and annual Green Card policies for cars is UAH 5,083 and UAH 7,406 respectively, for buses – UAH 15,461 and UAH 28,514, for trucks – UAH 12,546 and UAH 23,678 respectively.
The Motor (Transport) Insurance Bureau of Ukraine (MTIBU) as of October 1, 2020 placed 72.6% of the hryvnia funds of the centralized insurance reserve fund for protection of road accident victims at four state banks.
According to a report on the MTIBU’s website, there are UAH 324.3 million on deposits in Ukreximbank, UAH 147 million in Oschadbank, UAH 267 million in Ukrgasbank, and UAH 24.750 million in PrivatBank.
In addition, Kredobank has UAH 94.2 million on deposits, Credit Agricole Bank some UAH 9.120 million, OTP Bank some UAH 42.9 million, TAScombank some UAH 95.794 million, FUIB some UAH 5.3 million, Alfa-Bank some UAH 7.6 million, and Pravex Bank some UAH 33.7 million.
In addition, as of September 30, 2020, the money of the centralized insurance reserve fund for protection of road accident victims in hryvnia-denominated government domestic loan bonds amounted to UAH 559.3 million and foreign currency government bonds some $ 107.087 million.
The Motor (Transport) Insurance Bureau of Ukraine (MTIBU) from October 19, 2020 introduces new tariffs for Green Card policies for those traveling abroad by road.
According to the report on the website of the bureau, the MTIBU has recalculated the cost of Green Card insurance certificates upwards by an average of 3.3%.
The last change in tariffs was on August 3, 2020, upward by 3.1%.
Green Card policies have been implemented since 2009 in two types: all of Europe; Belarus, Moldova and Russia. Also, from January 1, 2016, Ukrainian Green Card policies began to operate in Azerbaijan.
According to the MTIBU, the cost of Green Card in Ukraine for 15 days for trips across Europe for passenger cars increases to UAH 815 (previously UAH 789), for buses to UAH 3,062 (UAH 2,965), for trucks to UAH 1,922 (UAH 1,861).
The cost of Green Card for one month for cars will amount to UAH 1,297 (previously UAH 1,256), buses UAH 4,253 (UAH 4,118) and trucks UAH 1,922 (UAH 2,471).
The cost of the semi-annual and annual Green Card policies for cars will amount to UAH 5,760 and UAH 7,131 respectively, for buses UAH 14,888 and UAH 27,649, for trucks UAH 12,080 and UAH 22,800 respectively.
Rates on one-time insurance premiums under agreements of international compulsory insurance of car owners’ civil liability were defined by the Ukrainian Cabinet decree dated January 6, 2005, and are calculated in euros.
The Green Card system provides insurance coverage for those affected by a traffic accident regardless of their country of residence and the country of vehicle registration. The Green Card operates in 47 countries in Europe, Asia and Africa.
According to the decision made by the General Assembly of the Council of Bureau of the Green Card system in Luxembourg in May 2004, Ukraine became a full member as of January 1, 2005.
The Motor (Transport) Insurance Bureau of Ukraine (MTIBU) paid UAH 104.1 million for the owners of uninsured vehicles, which were involved in road accidents without a valid compulsory civil liability insurance of land vehicle owners (OSAGO) policy in January-September 2020, which is 23.5% more than in the same period a year earlier.
The bureau said that the number of payments for uninsured drivers from the victim protection fund of MTIBU increased 22%, to 2,946.
According to MTIBU, the reason lies in a combination of several factors: the low standard of living of Ukrainian citizens, the decline in economic activity caused by the pandemic, insufficient financial culture of the population, the irresponsibility of some drivers and the lack of effective mechanisms to control the availability of OSAGO policies.
In addition, an obstacle to improving the situation is that the employees of the National Police have the right to check the availability of the OSAGO policy only in case of violation of the traffic rules by the driver or if they got into an accident. Also in Ukraine, in contrast to many European countries, the introduction of automatic recording of the availability of OSAGO policies remains at the level of a promising idea, the bureau said.
“After in February 2019, the State Border Guard Service began to automatically check the presence and validity of the Green Card insurance certificate for each driver traveling abroad.., almost immediately we noted a significant increase in the number of concluded international Green Card insurance contracts (by 30-40% monthly),” Director General of MTIBU Volodymyr Shevchenko said, whose words are quoted in the report.
According to him, it is necessary to introduce in a similar way for an automated check of the availability of internal OSAGO policies, which will solve the problem of uninsured drivers on the country’s roads. This requires joint efforts of the legislature, the regulator and the Ministry of Internal Affairs.
According to the report, the number and amount of payments for drivers of privileged categories also increased in January-September 2020. The number of such payments increased by 12.8%, the amount – by 24.9%, to UAH 26.8 million.
During three quarters of this year, the bureau paid UAH 153.9 million from the MTIBU victim protection fund, to which all insurers-members of the bureau make monthly contributions, which is 2.8% less than in the corresponding period last year. The number of payments decreased 13.8%, to 4,500. Such dynamics was caused by a decrease in the volume of payments for bankrupt insurers and payments via returning the base guarantee contribution of the insurer.
