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What you need to know about MTPL or CTP insurance
What risks are covered by CTPCI (Motor Third Party Liability Insurance)
Civil liability insurance is a way of protecting victims in the event of road traffic accidents (RTAs). An MTPL policy is a mandatory document for all vehicle owners. Just like a driver's licence, you cannot drive without it.
Every year, when buying insurance, drivers comply with the requirements of Ukrainian legislation, but not everyone understands in detail how it will help in the event of an accident. When an accident occurs, many people take rash actions out of ignorance.
To avoid problems, to follow the laid down algorithm of actions, to study your rights and obligations, it is worthwhile to understand in detail the nuances of CTP.
What exactly does MTPL cover?
CTPCI covers a single risk - a road traffic accident. Compensation is paid to the injured party. The culprit of the accident is also protected: a significant financial burden is lifted from his shoulders.
The payment covers:
- property damage to the car or other property of third parties: repair costs, restoration of damaged property
- treatment of the victims;
- compensation to close relatives in the event of the victim's death.
The amount of damage is determined by independent appraisers or insurance commissioners. Passengers who were in the car of the perpetrator of the accident are also considered victims.
Who compensates for losses under CTP insurance
Payments under the CTPCI are made by the insurer - the company in which the policy was purchased.
This can be either the company in which the culprit of the accident is insured or the victim, but only if both insurers are participants in the direct settlement programme.
The driver involved in the accident must immediately report the incident to the insurer's call centre and, no later than three days after the accident, provide the insurer with a written notice of the accident, his or her contact details and information about the location of the car. If a person is unable to comply with this requirement, for example, because he or she is in hospital, he or she must document the reason for the late fulfilment of obligations.
The fact of the accident must be properly documented. Both the guilty and the injured party are interested in this. There are two ways to do this:
- Using the European protocol. You can do this by typing "electronic Europrotocol" in your smartphone's browser and following the link https://dtp.mtsbu.ua/index.html, or by using the form received from the insurance company (IC) when purchasing the policy. The Europrotocol can be used in cases where there are no injured (dead) people in the accident, both drivers have valid MTPL policies and there are no signs of alcohol (drug) intoxication. The form is filled in at the scene of the accident, signed by all drivers involved if they have reached an agreement on the incident, and is the basis for compensation for losses under the CMTPL.
- With the call of the police if the damage exceeds UAH 50,000 or if at least one of the conditions specified in clause 1 is not met. Until the arrival of the competent authorities, the parties to the accident are not allowed to leave the scene or change the location of the vehicles. It is imperative to call an ambulance if there are any victims.
In any case, there is a three-day period for written notification of the insurer.
The insurance company reimburses the cost of evacuating the victim's damaged car to the place of residence or repair.
The Law on MTPL provides for the liability of the insurance company to fulfil its obligations. A penalty is charged for each day of delay in payment of compensation.
The National Commission and the MTIBU regulate the actions of insurers. In case of delays in payments, you can file a complaint with these agencies.
There are situations in which the culprit of a road accident does not have CTPCI. In such cases, the Motor Transport Insurance Bureau of Ukraine assumes responsibility for compensation.
The maximum payment under CTP insurance
The amount of payments to victims has recently been revised. The limit for compensation for property damage is UAH 130,000, and for damage to life and health - UAH 260,000. The maximum amount of compensation for property damage in a single accident is UAH 650,000. For life and health, the total amount of payments within one accident is not limited.
Situations where damages exceed the statutory limits of liability are unpleasant for both the culprit and the victim. The injured party who does not receive compensation will have to collect it through the court, which requires time, nerves, and material costs. The culprit of the accident, despite the fact that he or she has purchased an MTPL policy, will have to pay extra out of his or her own pocket. To avoid such a situation, insurers offer their clients to buy a limit of liability from UAH 100,000 to UAH 500,000 by entering into a voluntary civil liability insurance contract. We will discuss this in a separate article.
Coverage for damage to life and health
CTPCI guarantees monetary compensation in the amount of UAH 260,000 for each victim. The following are indemnified:
- costs of delivery, transportation to a medical facility, diagnostics, treatment, rehabilitation, and medicines. Expenses must be supported by payment receipts;
- income that the victim did not receive due to the loss of ability to work. The period from the moment of the accident to the restoration of normal life is compensated;
- moral damage;
- funeral expenses;
- loss of ability to work;
- disability;
- loss of breadwinners.
If the victim does not provide supporting documents for the expenses incurred, the minimum compensation is set and paid.
Motor third party liability insurance covers moral damages incurred in connection with an injury in the amount of 5% of the amount of compensation for damage to health. If the accident resulted in disability, the compensation is 12-36 minimum wages, depending on the group. If the victim dies immediately after the accident or within a year, relatives receive money for the funeral and expenses in the amount of 12 minimum wages.
Damage to health is compensated exclusively in monetary terms for each person injured in an accident.
How is MTPL insurance paid out?
The procedure for compensation is determined by the law of Ukraine, subject to the following principles
- If the amount of damage is less than the policy limit, the insurance fully covers the amount required to restore the car;
- if the damage exceeds the limit of liability, the difference is paid from the personal budget.
Within 10 days after receiving a notification of an accident, an authorised representative of the insurance company must arrive at the location of the damaged car to assess the damage. If this does not happen, the car owner has the right to seek an independent expert assessment. The costs are reimbursed by the insurer or MTIBU.
The calculation of loss coverage takes into account the market value of the car, the degree of damage, the number of damaged cars, and the cost of restoration work.
Within 15 days, but no later than 90 days from the date of determining the amount of compensation, the insurance company is obliged to make a decision on confirmation or refusal and pay the insurance indemnity.
The insurer shall notify the claimant in writing of the amount of the accrued loss coverage. In case of disagreement, the driver has the right to insist on an independent examination. The document must specify the date of payment.
The insurance is paid in cash or in the form of organising repairs at service stations that are partners of the insurance company.
What the policy does not cover
The Law on MTPL (Article 32) provides for cases in which the insurer does not compensate for losses. The insurance does not compensate for
- damage to the car of the person responsible for the accident. The decision on who will receive the money is made by the court, unless the parties reach a compromise on their own;
- damaged property that was in the culprit's car;
- damage to expensive property in an accident: products made of precious stones, metals, antiques, securities, banknotes, paintings, collectibles;
- fines, deprivation of a driver's licence for creating an emergency situation;
- damages incurred in an accident involving training vehicles participating in official competitions;
- repair costs for the car of the culprit of the accident, the risks of its theft and damage in case of break-in and accidents caused by natural or man-made factors.
Despite the existing limitations, it is difficult to overestimate the benefits of having insurance. After all, the cost of the policy and the amount of payments are incommensurable. Attentiveness and awareness of compulsory insurance issues is the key to confident, correct actions in the event of an event.
