On September 21, 2019, the order of the National Commission for Financial Services Regulation “On Amendments to Certain Regulatory Legal Acts Regarding Compulsory Civil Liability Insurance for Owners of Land Vehicles,” developed according to the submission of MTSBU, comes into force.
The main purpose of the order is to increase the protection of the interests of consumers of insurance services under OSAGO. The last time the limits were increased was in February 2016.
Insurance sums (payout limits) under OSAGO are increased by 30 %:
- For damage caused to the property of victims – up to 130,000 UAH.
- For damage caused to the life and health of victims – up to 260,000 UAH.
“The task of the insurance market, MTSBU, and NCFSR is to gradually provide reliable and full insurance protection to every victim in a road accident, including by increasing the payout limits under OSAGO,” says MTSBU General Director Volodymyr Shevchenko. “In the medium term, we must reach the point where the maximum insurance sums gradually approach European standards, which are millions of euros. For this, it is necessary to modernize the OSAGO legislation, which we have been working on for more than three years, and we plan to resume activity in this important area in the near future.”
The order also establishes new values of adjustment coefficients for calculating insurance premiums under OSAGO contracts. In particular, a new adjustment coefficient of 0.9 for electric vehicles was introduced, and the coefficient for vehicles with foreign registration was significantly increased (from 2–4 to 5–10).
The sizes of the bonus‑malus system coefficients will change: they can be either reducing (up to 0.9) or increasing (up to 1.8) depending on the insurance history of the client. As before, insurers have the right, but are not obliged, to apply the bonus‑malus system.
The principles for determining the territorial coefficient have also changed: instead of the vehicle registration location for tariff purposes, coefficient K2 will be set according to the place of registration (residence) of the owner of the vehicle (individual) or the location of the legal entity indicated in the vehicle registration certificate.
The number of tariff zones has been reduced from 7 to 6. When determining the tariff zone, the names of populated areas that belong to a particular zone are now directly indicated instead of the criterion of population size in the settlement.
A new adjustment coefficient K8 has been introduced, depending on the method of concluding the OSAGO contract: for a paper contract – 1.0; for an electronic contract – 0.9–1.
In addition, NCFSR adopted order No. 1514 dated 08.08.2019, which approved new samples of several OSAGO documents:
- Sample and technical description of the OSAGO policy;
- Sample visual form and technical description of the OSAGO policy confirming the conclusion of an internal electronic contract;
- Sample and technical description of the special mark issued to the policyholder when concluding the contract.
- OSAGO policy forms of the current sample may be used until March 1, 2020.