Zelenskyy signs law changing operating conditions of OSAGO market
On June 17, President of Ukraine Volodymyr Zelenskyy signed the law on compulsory civil liability insurance of land vehicle owners (OSAGO), adopted at the final reading by the Verkhovna Rada on May 21, 2024, according to the parliament's website.
As reported, the Verkhovna Rada of Ukraine adopted bill No. 8300 at the first reading on January 12, 2023. Its authors are the head of the parliamentary committee on finance, tax and customs policy, Danylo Hetmantsev, and 11 MPs.
The law gradually increases the amount of insurance amounts (the maximum amount of insurance payment) to the amounts established in the countries of the European Union, and establishes the rapid implementation of guarantee payments to injured persons for bankrupt insurers (60 days).
The document expands the possibility of checking the availability of an OSAGO policy, in particular by the National Police in cases of traffic supervision (including through auto-fixation), and by the State Border Guard Service of Ukraine in places of border control, regardless of the ownership and place of registration of the vehicle. In addition, Ukrtransbezpeka will now check the availability of a vehicle license when exercising state supervision.
Free pricing of insurance contracts is also being introduced, i.e. insurance companies receive the right to independently set prices for the relevant insurance product and individually for each client. This will allow the market method to provide better services to end consumers. Another innovation is the abolition of franchises in OSAGO agreements.
Among other things, the law changes the conditions for the preferential category of citizens by introducing a 50% discount on one OSAGO policy for all categories of beneficiaries.
Direct settlement of losses is carried out for all insurance companies involved in compulsory vehicle liability insurance. This system allows for more efficient calculations of insurance compensation.
Insurance payments will be calculated without taking into account vehicle wear and tear. In addition, insurance companies will encourage clients to make payments directly at the service station.