Business news from Ukraine

MTIBU RAISES COST OF GREEN CARD

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.

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MTIBU INCREASES PAYMENTS FOR UNINSURED VEHICLES BY 23%

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.

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MTIBU AGAIN REDUCES COST OF GREEN CARD POLICIES

The Motor (Transport) Insurance Bureau of Ukraine (MTIBU) is introducing new tariffs for Green Card policies for those traveling abroad by road from May 16, 2020.
According to the report on the bureau’s website, the MTIBU recalculated the cost of Green Card insurance certificates downward by 4%.
The last change in tariffs was on April 1, 2020 upward by 4.4%, the previous on March 20 by 4.7%.
Green Card policies have been implemented since 2009 in two ways: 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 policies in Ukraine for 15 days for trips across Europe for cars is reduced to UAH 712 (previously UAH 741), for buses to UAH 2,667 (UAH 2,785), and for trucks to UAH 1,681 (UAH 1,748).
The cost of Green Card for one month for cars will be UAH 1,134 (previously UAH 1,180), buses UAH 3,719 (UAH 3,868), and for trucks some UAH 1,681 (UAH 2,321).

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MTIBU INSURERS RAISE OSAGO PREMIUMS BY 20% IN Q1

The insurance companies that are members of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU) in January-March 2020 increased collection of insurance premiums on compulsory insurance of vehicle owners’ civil liability (OSAGO) by 20.28% compared to with the same period of 2019, to UAH 1.3 billion.
According to data published on the MTIBU’s website, the number of OSAGO contracts in the first quarter increased by 0.55%, to 1.776 million
The total amount of accrued insurance claims under internal insurance contracts increased by 15.15%, to UAH 684.3 million. In particular, more than UAH 123 million is paid using European accident record forms, which is 12.8% more than in January-March 2019.
The bureau also recorded an increase in the number of settled claims for insurance compensation by 10.3%, to 37,527, of which 13,041 using European accident record forms (an increase of 10.35%).
The MTIBU is the only association of insurers that carries out compulsory insurance of vehicle owners’ civil liability for damage caused to third parties. The bureau members are 49 insurance companies.

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MTIBU RAISES COST OF GREEN CARD POLICIES BY 5%

The Motor (Transport) Insurance Bureau of Ukraine (MTIBU) will introduce new tariffs for Green Card policies for people traveling abroad by car from 00:00 on March 13, 2020. According to a report on the bureau’s website, the MTIBU recalculated the cost of Green Card insurance certificates, which are introduced, up 4.9%
The last tariff change was on December 6, 2019 towards a decrease of 4%.
Green Card policies have been implemented since 2009 in two ways: 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 policies in Ukraine for 15 days for trips in Europe for cars rises to UAH 678 (formerly UAH 647), for buses to UAH 2,548 (UAH 2,430), for trucks to UAH 1,600 (UAH 1,525).
The cost of the Green Card for one month for cars will be UAH 1,080 (UAH 1,029), buses some UAH 3,539 (UAH 3,375), trucks some UAH 2,123 (UAH 2,025).
The cost of six-month and annual Green Card policies for cars will be UAH 4,793 and UAH 5,934 respectively, for buses UAH 12,389 and UAH 23,000, for trucks UAH 10,053 and UAH 18,974 respectively.
The cost of policies for trips to Azerbaijan, Belarus, Moldova and the Russian Federation for cars for 15 days will be UAH 494, one month some UAH 726, half a year some UAH 1,666 and one year some UAH 2,372.

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MTIBU CUTS PAYMENTS FOR UNINSURED VEHICLES BY 2.1%

The Motor (Transport) Insurance Bureau of Ukraine (MTIBU) in January-June 2019 paid UAH 54.6 million to the owners of uninsured vehicles (which caused a road accident, without having a valid OSAGO policy), which is 2.1% less than in the same period a year earlier.
According to the bureau, the share of such payments in the total number was almost 47.6% (1,568 payments), in the total amount of payments some 57.9%.
The MTIBU also reports that in the first half of the year it made 3,297 payments from guarantee funds, which is 3.3 more than in the six months of 2018, for a total amount of over UAH 94.3 million (17.7% more).
Another significant item of payments is payments for drivers of preferential categories, whose share in January-June 2019 was 15% in terms of quantity and 15.5% in terms of the amount of payments. During the first half of 2019, the MTIBU made 494 payments for such drivers for a total of almost UAH 14.7 million. Compared to the first half of 2018, the number of payments remained almost unchanged (0.4% more), the amount rose by 7.7%.

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