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MTPL, the New Way, Starting January 1, 2025. What's Changing?
On January 1, 2025, a new version of Ukraine's Law "On Mandatory Motor Third-Party Liability Insurance" comes into force. The new version brings many changes compared to the current law. Its goal is to strengthen driver protection and improve the service insurers provide clients.
All changes apply only to policies taking effect on or after January 1, 2025. Policies that took effect on December 31, 2024, continue under the old rules until they expire.
Most drivers used to treat MTPL this way: "I'll buy the cheapest policy, since it's insurance for the police, not for me." Most never thought about the insurer's service quality, since the policy wasn't really bought for themselves.
The new law changes that. MTPL is no longer just a policy for the police and accident victims — it's now a policy for the policyholder too, largely thanks to mandatory direct settlement for every insurer selling MTPL. Previously, if you were the injured party in an accident, only the at-fault driver's insurer was responsible for compensating you. So it was always a lottery whether the at-fault party had a policy from a good insurer or one with poor service. With mandatory direct settlement, drivers now have a reason to choose not the cheapest policy, but one from a company that delivers quality service — because it's your own insurer that will handle repairing your car if someone hits you.
Coverage is also increasing, and deductibles and depreciation are being eliminated.
Now let's go through everything in detail. What exactly changes for drivers starting the new year?
Higher insured sums. MTPL insured sums will rise in stages.
Starting January 1, 2025, insured sums change as follows:
- For life and health: from 320,000 UAH to 500,000 UAH per injured person (5 million UAH per insured event)
- For property: from 160,000 UAH to 250,000 UAH per injured person (1.25 million UAH per event)
The next increase takes effect in 2026 (but no earlier than January 1 of the year following the end or lifting of martial law in Ukraine).
The final increase takes effect on January 1 of the year that falls five years after Ukraine joins the European Union. Insured sums will then be:
- For life and health: the equivalent of €1.3 million per injured person and €6.45 million per insured event
- For property: the equivalent of €1.3 million per insured event
Direct settlement. Currently, an accident victim can only file with their own insurer if both they and the at-fault driver hold MTPL policies from insurers that are part of the direct settlement agreement. Starting January 1, 2025, every insurer selling MTPL is required to offer direct settlement — meaning victims will now always be able to file with their own insurer rather than the at-fault driver's.
Conditions for direct settlement:
- Only 2 vehicles were involved in the accident
- Both drivers hold valid MTPL policies
- Only property was damaged (no deaths or injuries)
Direct settlement also applies when 2 vehicles are involved and only the injured party holds a valid MTPL policy.
Police policy checks. Under the current law, National Police officers can check for a valid policy when drawing up a traffic violation report or documenting an accident.
Under the new law, police will also be able to check for a valid MTPL policy in other situations, specifically:
- While directing traffic
- While monitoring compliance with traffic rules
- While checking the lawful use of vehicles
Policy validity can also be checked via photo and video recording — i.e., through traffic monitoring cameras.
Removal of the Europrotocol limit. Currently, the maximum Europrotocol payout is 80,000 UAH, but starting January 1, 2025, this limit is removed — the maximum Europrotocol payout can equal the full insured sum. As a reminder, a Europrotocol is an official document with accident details that both parties can fill out themselves without calling the police. It's submitted to the insurer to receive a claims payout.
New condition for filing a Europrotocol. The new law clearly states that a Europrotocol can only be used when the accident between two vehicles involved contact (they collided).
The other conditions remain unchanged:
- Both drivers hold valid MTPL policies
- 2 vehicles were involved in the accident
- Only property was damaged — no deaths or injuries resulted
- Both drivers are completely sober
- Both drivers agree on the circumstances of the accident
No more deductibles. Currently, when buying a policy from Arsenal Insurance, drivers can choose one of the following deductible options: 0, 1,500, 2,600, or 3,200 UAH. Starting January 1, MTPL deductibles are eliminated — insurers will pay out claims in full.
Removal of the depreciation factor. Starting January 1, insurers will be required to restore the vehicle to its pre-accident condition. Depreciation no longer applies — the insurer pays for repairs in full, within the insured sum. If the car is under 5 years old, new original parts must be used for repairs. If it's over 5 years old, equivalent aftermarket parts can be used.
Payouts to repair shops. From now on, insurers must repair vehicles at a repair shop, transferring the repair funds directly to that shop's account. However, if the client requests it, the payout will go to their personal account instead. If the car is under 5 years old or still under the manufacturer's official warranty, the client can require repairs at a manufacturer-authorized repair shop.
Electronic policies only. Starting in 2026, all insurance policies will be issued exclusively in electronic form, and every MTPL policy must be entered into MTIBU's Unified Centralized Database. A policy can't take effect until its information has been entered into this database. A transition period applies for 2025 — policies can still be issued in either electronic or paper form throughout the year.
Payout decision deadlines. The new law requires insurers to decide on a payout within 60 days of receiving the claim and all required documents. Under certain conditions (such as needing an expert assessment of the accident's causes and circumstances), this can be extended to 90 days.
Faster payouts for policies from troubled insurers. Currently, if an at-fault driver's insurer is in trouble (undergoing bankruptcy proceedings, liquidation, or license revocation), payouts on their policies can take a very long time. Under the new law, MTIBU pays out on such policies according to a set procedure, without waiting for all court proceedings and the bankruptcy ruling to conclude.
Free pricing. Under the new law, insurers have the right to set MTPL rates at their own discretion. When calculating rates, insurers will be allowed to factor in a driver's history of at-fault accidents.
Discount categories. The current MTPL law recognizes 2 categories: those exempt from buying a policy, and those entitled to a 50% discount. Under the new law, every discount-eligible category is now required to buy an MTPL policy. All of them are entitled to a 50% discount on the policy price.
Discount-eligible categories include:
- Combat veterans
- Injured participants of the Revolution of Dignity
- War veterans
- People with Group I and II disabilities
- People affected by the Chornobyl disaster, Category I and II
- Pensioners
The discount applies to vehicles with an engine up to 2,500 cc or an electric motor up to 100 kW.
In summary: the new law will make MTPL more expensive, but in exchange, drivers get a significantly higher level of protection and service — insured sums will rise, payouts will be faster, and the whole settlement process will become more transparent and fair. These changes bring Ukraine closer to European standards in motor insurance.
