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Compulsory motor third party liability insurance (Compulsory MTPL) provides insurance coverage for property and health of motor vehicle collision victims. Every car owner must have such a policy. According to the Law of Ukraine, use of vehicles without Compulsory MTPL policy (even trailers) is prohibited.

The policy covers the driver's liability if he is responsible for committing a traffic collision. The damage caused to vehicle, property or health of a third party will be indemnified by an insurance company. In other words, damage caused to the person who has suffered losses will be indemnified.

If your car was involved in a motor vehicle collision and was damaged due to the fault of the driver of another car who violated the traffic rules, you will receive money for repairs from the insurance company of the responsible person. If you are the person responsible for the accident, your insurance company will pay the insurance indemnity to the injured party. Indemnity shall be paid in the amount of the average cost of repairing the vehicle, according to the calculation and taking into account the degree of wear and tear of spare parts.

The price of Compulsory MTPL policy in Ukraine is determined by the state and changes almost every year. Motor third party liability insurance is valid only within the territory of Ukraine.

CASCO is vehicle insurance against damages due to various risks (fire, natural disasters, falling of foreign objects on the vehicle, etc...), as well as vehicle theft or theft of property from the vehicle.

The price of CASCO policy primarily depends on the value of the vehicle, as well as on the risk assessment; the price varies in different insurance companies. The amount of indemnity is equal to the actual cost of vehicle repairs or the vehicle's total value at the moment of an insured event occurrence.

The sum insured under CASCO insurance is equal to the actual value of the insured vehicle at the moment of policy conclusion. The age limit of the insured vehicle is usually 7-10 years.

This type of insurance is necessary for temporary travel abroad and is compulsory. Depending on the type of selected policy, travel insurance may include various risks.

Typically, the necessary minimum for departure is medical insurance and accident insurance. However, insurance companies offer inclusion of additional risks, such as loss or delay of baggage, cancellation or delay of flight, loss or theft of documents.

If you ordered a physical copy of your policy, then it is possible to get it delivered by either Finscanner courier within Kiev or you may also collect it from any office of Nova Poshta throughout Ukraine. 

Please note that when you order a policy in Kiev, you can get it delivered on the same day by Finscanner courier. When ordering the delivery of an insurance policy to one of the offices of Nova Poshta throughout Ukraine before 18:00 of the current day, you can get it delivered in 1-2 days according to Nova Poshta delivery terms.

Deductible is a portion of loss which is not covered by the insurer under the insurance policy.

It takes only 7 minutes to issue an insurance policy for a new client, and about two minutes for an existing client.

To resolve the mistake, you should contact the insurance company with the original insurance policy and your passport.

While Compulsory MTPL is required by law, purchasing CASCO policy is a voluntary decision. Compulsory MTPL is required for all car owners, regardless of whether or not their vehicles are insured under CASCO.

CASCO insurance is a prerequisite only in case of car loan.

In this case, you can contact the insurance company and cancel the Compulsory MTPL insurance policy.

If you buy another vehicle, you simply renew the Compulsory MTPL policy for your new vehicle.

Then the remaining funds will be transferred to your new policy.

It is a system of relationships between insurance companies and clients.

Under the direct settlement system, the payment to the victim of a traffic collision shall be made by the insurance company from which the victim has bought the Compulsory MTPL policy, and not by the insurance company of the responsible person.

This will help to avoid a situation where the injured party can not receive their claim payment.

Voluntary MTPL insurance policy is a voluntary motor third party liability insurance. Under Compulsory MTPL policy, an insurance company can indemnify the injured party not exceeding UAH 100,000.

If the cost of vehicle repairs exceeds UAH 100,000, the difference has to be paid by the client. Voluntary MTPL insurance increases the liability limit, and also covers the risks that may not be included in the Compulsory MTPL insurance policy.

Voluntary MTPL policy can be bought, even if you already have Compulsory MTPL policy.

For the vehicle owner, travelling outside Ukraine, it is mandatory to have a Green Card policy, which is checked by the customs control at the border.

In the case of absence of such a policy, customs officials have the right to restrict you from crossing the border.

If you are going abroad by car, it is compulsory to have insurance for your vehicle. In order to issue a Green Card policy, you must have an international passport and registration certificate for the vehicle. The cost of such insurance is determined by each country separately, on a regulatory and legal level.

The amount of damage, covered by the Green Card issued in Ukraine, is also determined by the country where you are going (the country where a traffic collision may occur). In the event of a traffic collision abroad, the claim payment shall be made by the MTIBU, and not by the insurance company (Motor (Transport) Insurance Bureau of Ukraine).

Once the Green Card is issued, your data is immediately entered into the electronic database of the MTIBU. And if a traffic collision occurs which is your fault, the foreign law enforcement agencies will receive confirmation of the validity of the insurance policy issued for your vehicle.

The list of Green Card system includes 48 countries: Austria, Albania, Andorra, Belgium, Belarus, Bulgaria, Bosnia and Herzegovina, Hungary, Great Britain, Germany, Greece, Denmark, Israel, Iran, Ireland, Iceland, Spain, Italy, Cyprus, Latvia, Liechtenstein, Lithuania, Luxembourg, Macedonia, Malta, Moldova, Morocco, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Serbia, Tunisia, Turkey, Ukraine, Finland, France, Croatia, Czech Republic, Montenegro, Switzerland, Sweden, and Estonia.

The first thing to do is call the police. The police officer will draw up a report and collision diagram and write down the data of policyholders involved in the traffic collision. The report shall be made in two languages ​​- the official language of the country where the accident occurred, and in English. If the police do not issue a report in English, you have the right to demand this.

If you are not responsible for causing the accident, and have suffered a loss, you will be indemnified by the insurance company of the responsible party. We recommend you to make a copy or photograph of the insurance policy of the person responsible for causing the accident and the report issued by the police. Usually, in order to receive the indemnity, it is necessary to provide the copy of the report to the insurance company of the party responsible for causing the accident.

If you are the person responsible for causing the traffic accident, and you do not have a CASCO insurance policy with coverage that extends to the country where the traffic accident has occurred, you will not receive the insurance indemnity.

According to the Law of Ukraine, the following categories of people shall have the right to insurance discounts:

• war veterans and war invalids, which are defined by the Law;
• disabled persons of group I, who personally manage their own vehicles;
• persons driving a vehicle that belongs to a disabled person of group I in his presence are exempt from compulsory motor third party liability insurance within the territory of Ukraine.

Indemnification for damages as a result of an accident, caused by the persons specified above, shall be made by the MTIBU in the manner prescribed by the Law. The amount of insurance premium under one single internal insurance policy shall be reduced by 50 percent, provided that the insured is a citizen of Ukraine - a war veteran, disabled person of group II, a person affected by the Chernobyl disaster (of category I or II), or retired, and the covered vehicle has an engine capacity up to 2,500 cc. inclusive, and belongs to such citizen under the right of ownership.

The above discount shall be granted under condition that the vehicle is managed by the person of the mentioned categories of Ukrainian citizens, without the purpose of providing paid services for carriage of passengers or cargo.

In accordance with the order of MTIBU No. 1661/10 of 25.01.2012, the OSAGO insurance policy indicates the location of the institution that registered the car and which is indicated in the vehicle registration document. That is, if, for example, the owner is registered in Odessa, but the car was bought and registered in the Kiev MREO, then it is necessary to specify in the insurance policy exactly Kiev.

This is important for car owners, because:

• The size of the insurance depends on the city, since for different cities the policy of an auto citizen is significantly different in value.
• If you incorrectly indicated the city of registration when registering an auto citizen, the insurance company can collect 50% of the amount paid as a result of the insured event.