Insurance proceeds under MTPL insurance in Ukraine to go up to UAH 500,000

From 2025, the amount of insurance proceeds, or liability limits, under motor third party liability (MTPL) insurance agreements in Ukraine will increase by about 1.5 times.

The relevant statement was made by Motor (Transport) Insurance Bureau of Ukraine (MTIBU) Director General Oleksandr Bernaziuk in an interview with Ukrinform.

According to Bernaziuk, the above changes will result from the fact that most provisions of the revised Law of Ukraine ‘On Compulsory Third Party Liability Insurance of Motor Vehicle Owners’ are coming into force from January 1, 2025.

“Currently, liability limits for the damage to life and health are UAH 320,000, for the damage to property – UAH 160,000. Next year, the above sums are increasing to UAH 500,000 and UAH 250,000 respectively. In the future, the law provides for a gradual rise in insurance proceeds and bringing them in line with European liability limits,” Bernaziuk told.

However, in his words, this process directly depends on Ukraine’s progress on its path towards the European Union. Thus, the pace of increasing the limits will be determined by the dynamics of the accession process.

In particular, from 2026, liability limits for the damage to health will go up to UAH 1 million per affected person and UAH 20 million for all persons affected by one road accident. Meanwhile, liability limits for the damage to property will rise to UAH 2 million per accident. But, these changes will become available only after the abolition of martial law.

“With Ukraine’s accession to the EU, liability limits will increase to UAH 10 million per individual and UAH 50 million per accident, and those for the damage to property will reach UAH 10 million. By comparison, in neighboring Poland, liability limits under MTPL insurance agreements amount to EUR 5.2 million for the damage to health and EUR 1.05 million for the damage to property,” Bernaziuk explained.

At the same time, the cost of insurance policies is likely to grow as well. Currently, pricing is regulated, in fact, by the state – with certain established ratios and criteria that insurance companies can apply. From January 1, 2025, there will be no such restrictions. Insurance companies will independently set prices for the MTPL and Green Card insurance products in accordance with their own policies, procedures and underwriting calculations. Bernaziuk assumes that the cost of MTPL insurance may increase by 50-70%.