Car Insurance After the Reform: Payouts Have Nearly Doubled
27 April 12:41
In January–March 2026, the average payout under MTPL (motor third-party liability) policies rose by 52% compared to the previous year, reaching 57,455 UAH. In total, insurance companies paid out over 2.7 billion UAH and settled 48,124 claims. The number of settled claims rose by 29.8%, and the volume of payouts by 97.4%. According to "Komersant Ukrainian", this was reported by the press service of the Motor (Transport) Insurance Bureau of Ukraine.
Transition to a new operating model
In the first quarter, the market for compulsory civil liability insurance for car owners (OSCPV) completed the transition to a new operating model under Law No. 3720-IX. Since the beginning of the year, all contracts have been operating under the updated rules. The reform has brought the Ukrainian system closer to the European principles of the Motor Insurance Directive. The deductible and the vehicle depreciation factor have been eliminated. Insurance coverage limits have been increased. This has brought the amount of payouts closer to the actual cost of repair.
MTIBU Board Chairman Oleksandr Bernazuk noted: “The increase in the average size of insurance payouts is expected. In 2025, the market operated in a transitional mode… Since the beginning of 2026, all MTPL contracts have been operating under updated rules, which provide for higher liability limits, more comprehensive coverage of repair costs, and enhanced protection for victims of traffic accidents.”
Simpler Claims Settlement
The changes have made claims settlement simpler. Direct settlement has become mandatory for all insurers. The preferred method is vehicle repair at a service station. The average processing time for direct settlement claims is 32 days, compared to 57 days under the standard procedure. In addition, 26,578 payments were made under direct settlement—this accounts for 55% of the total number of settled cases. Drivers are using the Europrotocol more frequently.
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In the first quarter of 2026, 53% of insurance payments were made for traffic accidents processed without calling the police (43% in 2025). Under the Europrotocol, 25,463 payments totaling over 1 billion UAH were made. The loss ratio rose from 2.4% to 2.9%.
“We expect the number of insurance claims to continue to rise. Key factors include increased stress on drivers under martial law… as well as deteriorating road conditions following the winter season and other related infrastructure factors,” Bernazyuk said.
Policy Cost
The average cost of MTPL insurance remained relatively stable. In January–March 2026, the average insurance premium was 3,237.1 UAH—8.8% higher than in the same period of 2025 (2,975.4 UAH). Over 1.64 million contracts were signed, generating over 5.3 billion UAH in premiums.
Starting in 2026, all MTPL contracts are concluded exclusively in electronic form and entered into the Unified Centralized Database.
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